What Consumers Are Expecting In Metaverse?
By the year 2023, your avatar friends will be waiting for you. You’ll be running late for a concert, but don’t worry! You already have front-row seats to the most immersive virtual experience. Late last century, when the internet was invented, people could hardly fathom the possibilities it would present. But fast-forward to today and we’re talking about a wholly digital verse with a virtual economy and real-time experiences. Virtual cafes, fashion shows, concerts, and shopping are all part of this new era of customer engagement. The possibilities are endless, but how ready are today’s consumers for a future in the Metaverse?
Avatars in a virtual world are becoming increasingly popular, but less than half the population is familiar with them. With all the hype around the term, many industry leaders, tech companies, and big brands have quickly adopted avatars. However, customers are not as ready as we think. A recent survey indicates that almost 50% of consumers still remain unfamiliar with the term ‘Metaverse’. Only 5% consider themselves enthusiastic users. In fact, while late 2021 and early 2022 saw a spike in the number of interested users, Google search trends indicate dwindling consumer interest.
Metaverse Has Arrived
The Metaverse is here, and it’s going to change the way we live, work, and play. Gaming, entertainment, and enterprise applications are already making headway in the Metaverse. On May 24, Microsoft announced Kawasaki as their new customer for their ‘industrial metaverse.’ They will leverage HoloLens headsets to produce robots and help workers by overlaying digital imagery on factory floors. This will help with production and repairs and combat supply chain problems. Meta too has been making strides with their upcoming mixed reality headset for people working remotely. So while consumers may not be ready just yet, the Metaverse is coming – and it’s going to change the way we live, work, and play.
Brands have started to take notice of the metaverse and are starting to dip their toes in the water so to speak. Since the early days of the internet (Web 1.0), technology and customer preferences have been changing and evolving at a rapid rate. Traditional brands who were late to the digital game had to undergo tremendous transformation processes to keep up with the times. To avoid this situation, brands today are scrambling to build their presence in the metaverse so they can be at the forefront of the revolution and enjoy the first-mover advantage as this space continues to develop.
How the Metaverse affects consumer behavior
With the transition to the Metaverse, we’re seeing a shift in consumer behavior as people adapt to new forms of content and experiences. We’re already seeing a huge demand for virtual reality concerts, with everyone from Justin Bieber to Megan Thee Stallion getting in on the action. And it’s only going to get more realistic and captivating as technology advances. Companies like Hyperreal are working on creating 3D digital twins of real people, and graphic engines like Unreal Engine are making virtual concerts more realistic than ever.
The increased shift to digital technology has created more opportunities for the widespread use of the Metaverse. In fact, a majority of consumers (58%) believe that the Metaverse will eventually replace social media as an upgraded version (2.0).
What impact will the Metaverse have on consumer and brand interactions?
A recent survey indicates that the majority of Gen-Z consumers are active shoppers on the Metaverse. Approximately 75% of Gen-Z shoppers have made a digital product purchase in a video game, and 41% believe that brands should sell products in the Metaverse as it provides customers with a platform to purchase NFTs and other digital assets. Virtual products and services have the potential to broaden revenue channels for brands, providing new opportunities for growth.
So, why will consumers invest in the Metaverse? To gain mainstream traction and connect with a larger customer base, brands need to create innovative digital experiences that are captivating and enhance the brand value. This is a great opportunity for brands to connect with a new generation of consumers, so it is important to invest time and effort into developing these experiences. Marketing strategies should be focused on creating these captivating experiences, as this is what will convince consumers to invest in the Metaverse.
Marketing in the metaverse calls for a total rewrite of the marketing rulebook. To drive value and create a unique customer experience online will necessitate completely new frameworks, such as partnerships with other industries. For example, to increase brand awareness among younger audiences, Gucci has partnered with the metaverse gaming platform Roblox to recreate their real-life installation in Florence, Italy within the game.
The metaverse is here. Are brands and consumers prepared for it?
The transition to the Metaverse is still in progress, and both brands and consumers are trying to understand how to use it and what its advantages and disadvantages are. Data privacy and the use of cryptocurrency are major concerns that will make customers cautious. Cyberattackers are taking advantage of the situation with multiple cases of data breaches, theft, NFT, and crypto scams being reported in the last 6 months. This has led to a lack of trust in emerging tech, with only one in five consumers saying they want to shop on the Metaverse.
In order to establish your brand in the Metaverse, you need to have a strong technical ecosystem that can handle high computing power and fast network connectivity. Additionally, you’ll need advanced chips, a high virtualization engine, and light technology. But that’s not all – brands also need to be careful about setting adequate and uniform policies and regulations to control cybercrime. User verification protocols and the establishment of a legal and regulatory body are key to protecting data privacy.
The Metaverse can be a daunting place to navigate, but if you want to stay ahead of the competition, you need to understand your customer and determine the best strategies for your brand. Gain actionable insights into the evolution of the Metaverse with us. Reach us at www.philomathresearch.com