Several analysts believe that metaverse could be the next big evolution for the internet. Businesses are understanding its lure as it continues to evolve. While some have already established their space, others are wondering whether and how they should be a part of it. Here’s everything to know if you’re considering entering the metaverse.
Metaverse combines technological innovations all working together to create an immersive and engaging ecosystem. This allows both individuals and brands to interact in ways that were never possible, creating an environment with its own decentralized rules of engagement. Brands can use online gaming, virtual and augmented reality, and NFTs to engage with their customers and provide unique shopping experiences.
Gaming, entertainment, and fashion brands have been at the forefront of exploiting the opportunities offered by the metaverse. They have understood that if managed well, the metaverse can be a significant part of their e-commerce operations. If you are thinking about building a brand in the metaverse and monetizing it, here’s everything you need to know.
What is the metaverse?
The metaverse includes immersive, persistent, and three-dimensional experiences on the internet. It replicates what happens in the physical world and adds several new interactive dimensions to it.
Unlike regular virtual reality experiences or video games, the metaverse also includes other senses including sound, sight, and touch. Put together, these enable the participants to communicate, play, and shop online.
It’s important to understand that the metaverse isn’t a single, monolithic world. There are multiple worlds that aren’t even interoperable or connected to each other. Each entity in the metaverse comes with its membership, access, technical specifications, creative expressions, and monetization rights.
Since there are multiple entities with their own audiences and rules of engagement, it’s crucial for brands to identify their space in the metaverse. This will help optimize the marketing efforts and give greater returns. An easier way to discover your brand’s place is by looking at brands in the same category or with the same target audiences.
More than anything else, brands need to be curious about the metaverse. By testing out different methods and learning from them, brands can build mutually beneficial and engaging relationships with their customers.
The metaverse could end up being the next domain where individuals communicate, connect, and transact. Building a brand in the metaverse won’t be a luxury then. It will be a necessity.
How brands can enter the metaverse
Since it’s a new domain, there aren’t any codified rules for building a brand in the metaverse. But based on the successes of some of its inhabitants, the following best practices will help you enter the metaverse and start building your brand.
Choose your targets
The first step is to find out where your potential customers are in the metaverse and how they’re behaving. Once you know how much time they spend in the metaverse, you will know whether you can afford to wait or have to enter the metaverse now.
For example, if your core target audience is younger people, it’s safe to say that you have to enter this world as early as possible.
Analyze the competition
One way to get your organization interested in the prospects of the metaverse is by studying your competitors and referencing their activities within your company. This will get the leadership team excited since it would seem doable.
Decision-makers in your team will also talk about the possibilities of the metaverse, even if at an elementary level because your competitors would be engaging with your potential audience.
Find applications
The key to being relevant in the metaverse is aligning your brand with applications that are in sync with your identity, ethos, target audience, and objectives.
There’s no need to do it all at once. What this needs is an imaginative approach that makes your brand seem both compelling and different.
Design your entrance
Entering the metaverse, like every major digital marketing exercise, needs the service of domain experts. When you interact with your agency, ask them about the latest trends and audience behaviors.
Since agencies are purposefully analyzing the successful campaigns in the metaverse, they would be in a better position to suggest a customized strategy for your brand that will resonate with your customers.
Learn from your tactics
It’s still early days for the metaverse and nobody has figured it out. Like any new domain or strategy, there will be successes and failures, and nobody’s immune to them. That’s why it’s important to be agile and have a long-term strategy.
Remember that there are no serious downsides to being active in the metaverse. There’s so much to gain and so little to lose. And with every campaign, you’ll have more learnings to optimize your strategies.
Be imaginative
Since it’s a new universe, customer expectations are high. They won’t be satisfied with mere extensions of the regular campaigns or activities from the physical world. Brands have to be bold and imaginative to break the clutter and make their presence felt. Ordinary transactional tactics will fall short.
Users are looking for new experiences and marketers have to be unconventional to acquire them at any stage of their customer journey. This shouldn’t be difficult since there won’t be any limiting brand guidelines. And there are several ways in which brands can monetize this new domain.
How to thrive in the metaverse
Several brands have found a way to integrate the metaverse into their e-commerce operations. Here are some ways in which you can monetize this new ecosystem.
Sell virtual products
Users are spending on virtual products ranging from accessories to real estate in the metaverse. Virtual land sales hit $106 million in December 2021. By 2024, the metaverse market is expected to grow to $800 billion.
Without the need for manufacturing or distribution, marketers can easily scale their product range and find customers. From digital versions of physical goods to online avatars to upgrades, there are several things brands call sell in the metaverse.
Use NFTs to give VIP access
One of the most successful tech innovations on the blockchain has been NFTs. These unique digital assets are used as proofs of ownership for anything from digital art to real estate. Brands can offer exclusive VIP access to their customers and boost their revenue.
Whether you’re launching a product or holding a virtual event, NFTs can be used to give exclusive access to their holders. These will also allow marketers to gain feedback from their customers.
Build a community
The next big thing in e-commerce is social commerce and the metaverse provides opportunities for brands to build thriving communities of users. This is where customers can find others who like the brand and engage with them.
By building a community, brands would be bringing users inside their orbits. Their interactions will provide valuable insights that can be used to create new products, tweak the existing line, and increase revenue.
Open virtual showrooms
One of the most effective and popular ways for a brand to get started in the metaverse is by having a showroom. This allows customers to discover products in a more detailed manner. More importantly, they will also be able to try out these products.
Whether it’s shoes or furniture, once customers get an opportunity to interact with them and discover their look and feel, there will be fewer chances of product returns in the physical world.
Customize products
Using product configurators and customizers, brands can find new customers and deepen their engagement with existing users. While in the physical world, demos are cumbersome, the process is effortless in the metaverse.
When users can customize products to their precise specifications, whether it’s sneakers or sunglasses, there are greater chances of conversion. They will also be more inclined to share their experiences on social media and give further traction to the brand’s marketing.
Find new audiences
The metaverse has no geographical limitations. You can hold an event, sell various tiers of tickets, and get participants from all over the world. Brands can also find specific audience groups such as gamers or automobile enthusiasts.
Once you understand the behaviors of the audience you’re targeting, you can add products to your portfolio to specifically target them. By selling in-game goods and skins, brands can tap into the younger audience groups who are the most active in the metaverse.
Deploy gamification
Gamification allows companies to use the principles of games in everything from project management to hackathons. There are several ways in which the same ideas can be applied in the metaverse to increase participation.
Brands can use gamification to encourage users to discover product features and share them on social media. When the rush of gaming meets the monetization potential of e-commerce, brands stand to gain a lot.
In short
Using these best practices, brands can make a compelling entrance into the metaverse, grow their user base, and increase their revenue.