With the creation of new virtual spaces and worlds, the metaverse has the potential to change the way that business is conducted.  At the very least, it may force companies to rethink how they engage with their customers.  What are some potential ways the metaverse may affect business?

Engaging Consumers Digitally

Younger consumers are less likely to watch network or cable television, read newspapers and magazines, or listen to the radio, according to a study published by Wunderman Thompson Intelligence (WTI).[1]  As a result, traditional marketing strategies historically employed by companies may no longer be relevant.

However, today’s consumers are more comfortable, and often prefer, interacting with brands digitally.  WTI found that:

• 73% of consumers said it’s easier to relate to a brand that has a digital presence
• 66% prefer to engage with brands digitally
• 62% feel they have a closer relationship with brands with a strong digital presence.

Gaming may provide a medium for companies to connect digitally with consumers.

Gamevertising

Consumers are spending more time on gaming, resulting in brands upping their presence on these platforms.  For example, Netflix, Hellmann’s, and Ally Financial created branded islands in Nintendo’s Animal Crossing: New Horizons gaming platform.  Automaker Ferrari created its latest model in Fortnite. 

Additionally, some brands are creating their own gaming presence.  Fashion brand Balenciaga released its 2021 collection via a video game created expressly for them.  Players navigate a futuristic world, passing characters wearing the luxury brand’s latest designs.  In addition, brands such as Burberry, Stella Artois, and Coca-Cola launched their own non-fungible tokens (NFTs) available either on gaming platforms or via direct auctions.

Metaverse gaming may provide a way for brands to connect with difficult-to-reach younger consumers.

New Retail Formats

Metaverse technologies, such as augmented reality (AR) and virtual reality (VR), are presenting new ways for brands to sell online and in physical locations.

Via VR, brands are able to construct 3-D stores through which consumers may browse and pick out items as they would in a brick-and-mortar store.  Some are creating digital twins of their flagship stores, creating flagship digital stores. 

Physical stores are blending digital overlays using AR technology.  One example is AR try-ons of clothing and even cosmetics.

Working in the Metaverse

As more companies embrace remote work, metaverse technologies, such as VR, may help to bridge the gap of physical distance.  Companies can set up virtual offices where employees, via avatars, can interact and collaborate.  As technology continues to improve, the digital representation of the office and the individual will likely become more realistic, fostering a more interactive environment.  Such platforms may allow companies to hire the most qualified individuals, irrespective of where they live.[2]

[1] All data sourced from: Into the Metaverse, Wunderman Thompson Intelligence, 9/14/21

[2] For more information, please see our blog Can the Metaverse Improve the Work-From-Home Experience?