What will the business impact of the metaverse look like?
Do you remember the movie ‘The Matrix’? How for the duration of its run time it took you to another world that was quite like our own and filled with fascinating possibilities.
In that sense, technology endeavours to create seamless digital business ecosystems today. As such, the metaverse is a key part of the puzzle that will take digital business ecosystems to the next level. Can you envision being in Mumbai and shopping in Boston, just like you would in real life without the cumbersome jet lag involved? The Metaverse can make it possible for you to see, feel and experience Boston without actually needing to travel there. What happens to business geographies then? Ostensibly, they would get blurred in most scenarios.
The metaverse is not some science fiction staple either as certain technological components such as cloud technologies, IoT, nonfungible tokens (NFTs), the Internet of Things (Iot) and extended reality headsets already exist. The metaverse would be a confluence of these technologies acquiring a crescendo. As a business leader, you may wonder if it matters to your business. The quick answer is a resounding yes!
So, how will the aforementioned technologies enable the metaverse and transform businesses? Let’s take a closer look based on insights from PWC.
What the Metaverse means for your business?
The metaverse, much like The Matrix, can offer a realistic virtual world that is rife with possibilities: You could, for instance, have a stunningly contemporary mall or a business center that allows for the purchase and sale of services and goods, hiring of talent, and facilitates interactions with customers and the world at large. The possibilities with the metaverse are endless and it could in many ways function just like a reimagined ‘real world’. It could be a virtual oasis of reality. A living breathing world made possible by binary code that connects isolated customer experiences to facilitate a more connected customer experience like never before.
The metaverse, according to some technological visionaries, will not be largely run-on platforms whose owners control data, governance, and commerce. Customers (and businesses) will instead be able to take their identities, currencies, experiences, and assets with them wherever they go. In addition, unlike today’s web experiences, much of this digital world will continue to exist even if no one is using it.
How can businesses leverage the metaverse?
Already, companies are looking to leverage the metaverse to:
- Enhance customer experiences significantly
- Introduce virtual products that are only available in the metaverse
- Gather new customer data
- Market physical and digital products and services
- Provide hardware and applications that support metaverse activities
- Support metaverse payments and finance
Some business cases for the metaverse
Virtualization of brand acquisitions: Business entities, such as Gucci, have begun to invest real money—we’re talking eight figures—in the purchase of virtual goods. For launching an excellent array of Metaverse items. Nike has purchased RTFKT, a virtual company that makes footwear and collectibles—yes, virtual versions! Gucci, the trailblazer in the luxury fashion sector, opened a virtual exhibition in conjunction with Roblox in May 2021 to offer limited-edition Gucci goods. Many businesses are shelling out millions of dollars to acquire digital real estate in the emerging metaverse.
NFTs to prevent art plagiarism:
With the advent of the metaverse, NFTs (nonfungible tokens), a fast-growing market with yearly sales of more than $23 billion would receive further impetus. Plagiarism would be a huge issue in the Metaverse, just as it is in the actual world, and NFTs could act as a potent solution. As their name suggests, NFTs cannot be forged or stolen. The growing number of successful NFT projects attests to this cutting-edge technology’s promise.
The Metaverse would be able to transcend geographical boundaries as well as geography-based restrictions. It will allow individuals and corporations to tap into the unique market economy’s potential. It will attract a large number of investors and propel the company to new heights of success. Consider virtual avatars of mentors and coaches conducting live online business coaching classes. It will give things a personal touch and assist small and home business owners in gaining the most benefits from digital techniques. NFTs could play a pivotal role in building trust and reliability in various iterations of the metaverse.
Capture Gen Z attention:
Generation Z makes up most of the virtual world’s population, making it a highly lucrative target market for corporations. The sale of the exclusive NFT collection by Gap, a well-known retailer, drew a positive response from the youthful crowd. Coca-Cola went even farther by offering NFT items that can be bought to other metaverse avatars specifically for decentral and citizens (read virtual avatars). It closely resembles the real-world behaviour of young people who sell their old phones to their friends and upgrade to a newer model by paying the difference in price.
Opportunity for better advertisement engagement:
Because of the metaverse’s large population, it would be a lucrative choice for companies to market their products. It will not only provide advertising with a novel outlet, but it will also elevate the online purchasing experience to new heights. You would be able to feel the fabric and even test it on your virtual avatar before purchasing it, in addition to seeing the designs.
Ads using advanced formats such as 360-degree videos and virtual reality billboards will be more engaging and yield a higher return on investment. Advertisers would be interested in learning the information about locations like decentral and perhaps understanding the persona of virtual avatars, thus the SEO analytics for digital advertising, such as tracking traffic and demographics, would be updated.