Cities Talk; Metaverses Listen?

This is the fifth post in a series aiming to explore the many forms metaverses can take and help business leaders think about the concept of metaverse. Previous posts in the series: "A non-definition of metaverse", "The Metaphysics of Metaverses", "The Metaverse’s A-Ha Moments", and "Extrapolating Towards the Metaverse".

What can the virtual world’s metaverses learn from the real world’s metropolises? After all, both are spaces in which people can work, play, and interact with each other as well as the environment.?

Just as metros must attract and retain residents, metaverses must do the same for users. They’d do well to learn from cities’ successes and failures in developing comprehensive, user-centered approaches to satisfy the needs of their residents.?

Interestingly, the BCG Henderson Institute recently created a methodology to assess cities around the world based on their ability to fulfill city dwellers’ key needs, as shown in the exhibit below.??

We have found that cities must systematically cater to the needs of their residents across the five levels of this Maslow-esque pyramid of needs to be successful. Hence, metaverses should pay attention to some key learning from cities:

Go beyond economic opportunity. A city’s ability to provide economic opportunities attracts talent. While cities strive to draw fresh talent, they often fail to address existing residents’ needs, and can’t retain them for long. Over 90% of Dubai’s population, for example, consists of foreigners, but the average resident leaves after three years. Only in the last decade has the city-state, by passing new laws that benefit non-Emiratis, succeeded in increasing the average stay to 8-10 years. Metaverses must learn, as cities have, that fulfilling a single need may attract users, but it won’t retain them. It’s why pioneers, such as Meta are creating multi-purpose metaverses that fulfill many needs, from work to social connectivity to entertainment.?

Accelerate positive change. Our BHI assessment of cities has shown that emerging cities such as Shanghai have been able to increase the quality of life and economic opportunities for residents in just a few years. Metaverses too must evolve quickly to fulfill growing expectations from their users; speed is even more critical here than in cities due to the lower switching costs between digital platforms. Newer platforms, such as Roblox, have grown by acting quickly to fulfill emerging customer needs, such as with friendlier content development tools, while proto-metaverses, such as Second Life, have shrunk as they failed to do so.?

Tackle societal concerns. Many cities have paid a big price for failing to care for the physical safety and mental well-being of residents. For example, in Chicago, homicides have cost the city almost $8 billion in direct and indirect costs in 2021 alone. If metaverses don’t prioritize user safety, they will quickly be labeled a disreputable part of the Net. The challenge is already here; in 2021, for example, the first case of groping was reported in Horizon Worlds.?

Build trust in authorities. Not only does trust build social capital in cities, but it also lowers transaction costs and uncertainty. Metaverses should understand how trust works in communities and mimic strategies adopted by cities, such as participatory budgeting which 11,000-plus municipalities globally have implemented. Given their digital nature, metaverse platforms are inherently better equipped than cities have traditionally been to collect inputs from many participants more efficiently and at a lower cost. The process has begun; in 2022, The Sandbox is planning to allow its users to participate in the platform’s decision-making.

What other lessons should metaverses learn from cities? Let us know right here on LinkedIn, or when you bump into our avatars in any metaverse.?

Francois Candelon?| Vladislav Boutenko | Julia Jacobson |?Philip Evans?|?Karen Lellouche Tordjman?|?Michael Jacobides?|?Maxime Courtaux?|?Gabriel Nahas