The metaverse: the next revolution in customer experience

We are witnessing the emergence of the so-called 'metaverse', a term that despite sounding like science fiction, is becoming more and more real as you have seen in the series of posts I am dedicating to this topic.

This new technology presents an opportunity to transform the status quo of the customer experience, enabling a more effective and personalized relationship with the consumer.

Although the metaverse is still a few years away from full consolidation, the concept is of great interest to companies looking to leverage their brand or gain new avenues of business.

What is the metaverse?

As I have told you in previous installments, the metaverse is, among many other things, a virtual three-dimensional version of our world that incorporates augmented reality, virtual reality, 3D holographic avatars, video and other modes of communication. The metaverse seeks to integrate the analog and digital worlds by blurring the boundary between them.

To access the different immersive environments (as the term "metaverse" refers to multiple metaverses, not just one), virtual reality headsets, augmented reality glasses and smartphone apps will be available. Users, who will be represented by digital avatars, will be able to meet and communicate, create content and explore new areas.

In these virtual worlds, users will be able to socialize, play, shop and work, escaping the physical and economic constraints of our reality through immersive, three-dimensional digital experiences.

The metaverse thus becomes for many the latest paradigm shift and the logical evolution of the Internet as we know it today. The possibilities offered by its technological advances come to revolutionize sectors as varied as those related to entertainment, military, engineering, health, education, retail and marketing.

The interest aroused by the metaverse in the business environment has grown since October 2021 when Mark Zuckerberg changed the name of Facebook to Meta, demonstrating his interest in growing into this new line of business. And he's not the only one betting on it: Bloomberg Intelligence estimates that the size of the metaverse market could reach $800 billion by 2024.

Extended Reality: VR, AR and MR

The metaverse has the power to immerse the user in simulated realities or bring information to the real world through visual, sound, haptic and even olfactory cues. All these technologies that allow extending the limits of the analog world with the insertion of virtual elements are part of the so-called extended reality (XR). The main forms that extended reality takes are virtual reality, augmented reality and mixed reality.

The type with which consumers are most familiar, virtual reality (VR), allows with the use of VR headsets to enter a simulated space that appears realistic. It creates a digital setting for an immersive, synthetic experience removed from the real environment.

Augmented reality (AR), through AR glasses, superimposes virtual 3D elements on the real world, augmenting the information received by the user through holograms.

Mixed reality (MR) can be considered the advanced version of augmented reality. Beyond combining real and virtual elements, the latter are capable of understanding the real environment, interacting and adapting to it in real time. Thus, the real and virtual worlds are intertwined and the user is able to manipulate both at the same time.

The metaverse as a transforming customer experience (CX) tool

The growth of an organization is increasingly related to a positive customer experience. According to Dimension Data, 84% of companies that work to improve the customer experience increase their revenues. The metaverse is emerging as the latest innovation in the brand-customer relationship, so its implementation has the potential to boost companies' CX strategy.

Undoubtedly, the most interesting thing that the metaverse offers in terms of customer experience is the possibility of creating customized content for the user, offering a much more pleasant and attractive interaction. Being able to adapt marketing campaigns to the tastes and preferences of the customer, offering a customized experience, will be perceived as a less invasive connection and will boost loyalty.

In addition, brands will be able to create these experiences at any point in the customer journey, from discovery and consideration, through purchase, to after-sales service and customer retention.

The metaverse can open the way to other revenue streams for the enterprise, as it enables the sale of virtual objects and experiences. From concerts to designer meta fashion to art and collectibles, there are already many virtual products being sold in the metaverse thanks to blockchain technology.

VR and AR technologies also make it possible to explore brands and products from home even easier. The ability to get a first-hand look at product performance before making a purchase from home can boost online sales. The metaverse has the power to attract potential customers, increase sales and reduce the number of product returns.

The metaverse has the potential to be the next iteration of how people connect with each other, communicate and transact. Investing in these technologies presents a great opportunity to create more personalized and engaging experiences, elevating the consumer experience to new levels. In the future, we can expect brands to have their own platforms within the metaverse, bringing with them a revolution in the customer experience.

But What Will be the future of customer experience in retail in the short time?

The future of the customer experience in the retail sector depends on the evolution of different factors. The current context, where changes are constant, where there is a highly competitive market, there is an ongoing digital transformation and there has been an irruption of new consumer habits, makes retail have a great protagonism.

At a time when the customer experience has become a fundamental pillar in the retail world, it is necessary to know what are the keys that will determine the sector in the future:

Offering online shopping

The company Packlink conducted a survey on "Consumer Habits" in Spain, which found that 80% of respondents made at least one online purchase in the last month. Therefore, the digital consumption model has already been consolidated and 2022 is positioned as the year of transition to a 100% phygital ecosystem, as the new marketplace: Wow, in which traditional and e-commerce coexist without directly competing with each other. This is a very recurrent fact in the sports arena.

New payment methods

Another trend is greater flexibility and greater facilities in payments. Previously, our possibilities were limited to card payments or the use of PayPal. Now, the irruption of a tool such as Bizum could turn payment platforms upside down, just as it has already done in our day-to-day lives.

In addition to the fact that immediate payments via mobile devices have already been integrated into ecommerces, applications and financial solutions are also beginning to emerge that will allow payments to be split up without commissions.

The use of social networks

Facebook, Instagram and even TikTok have become new markets that make the customer experience more intuitive. Through videos, product reviews and the possibility of buying without intermediaries, social networks will not only be a trend in 2022, but also in the coming years.

One trend that we will see grow more and more is Live Commerce. In this, product photos are eliminated, but videos and virtual tours that allow you to get to know all the specifications and uses through livestreams and tutorials.

"Ecommerce is a sector in constant evolution and very demanding in this regard. We professionals in the sector must constantly update our knowledge and tools. But the key is that this allows us to get to know our customers and users better and better. And the order is clear: we must streamline, simplify and make the way we approach them more sustainable," concludes Noelia Lázaro, Packlink's Marketing Director.

Unified sales through digital and physical channels

We see it every day in the process involving the incorporation of the online channel into physical stores - a trend that the Covid-19 pandemic has accelerated - but also in the creation of physical stores by businesses that were born, and have developed, in the digital world. Both processes respond to the needs of the new customer. A consumer who uses the online and offline store depending on his needs and his experience in the shopping process, or who, many times, combines the two modalities. He buys online and picks up his purchase in the physical store; or uses digital systems to buy in the physical store.

It is because of these new conditions that retailers have to adapt the management of the offline store to a new environment and the new expectations of consumers and thus achieve the uniqueness that will give advantages whatever the option of your customer. This will improve the customer experience in the retail sector.

Proximity and trust

The need to "launch a differential value proposition based on proximity. Agile and fast is more important than strategic. "Trust will gain ground in retail," said Juan Carlos Jiménez, sales director of Puma. "Large chains are more impersonal, but a center like Base can highlight its brand and reach the consumer's soul through proximity," he said.

This was corroborated by David Meire, European president of Hurley and advisor to Base, who said that "vertical brands will have a harder time than Base, where there is a family behind each business. The need for firms to show their social commitment was also made clear. Brands can no longer be neutral," said David Meire. It is no longer enough to be fiscally compliant, and growth calls for improving the quality of life in society."

Personalization

One of the secrets of today's successful brands lies in the customer experience. By taking into account their needs, tastes and expectations, tailoring a product or service will increase their satisfaction. Therefore, personalization of the experience is presented as a competitive advantage for brands.

Nine out of ten users who personalize a product at the start of their online shopping process end up buying it, according to a study by e-commerce multinational Astound Commerce. Other findings reveal that 2 out of 5 end up spending more than they intended to, and that when the shopping experience is ultra-personalized, the intention to add more products to the cart doubles (+110%).

Astound Commerce data shows that retailers with high levels of experience personalization are rated 20% higher than average. They have also found productivity gains of between 6% and 10%, with an increase in turnover of more than 10%. The company found that personalized e-mails have a 6.2% higher open rate. However, 66% of retailers do not send personalized newsletters.

In addition, more traditional and/or complex organizations are finding it more difficult to modernize their technology, personalize their in-store experience and break away from the traditional siloed way of working. In contrast, startups and digital natives are the best navigating personalization because the technology and their business models already include it.

Customer satisfaction and technology

The CX+ 2020 analysis reveals that fewer than 1 in 5 customers believe retailers are truly customer-centric. This shows that brands that delight their customers receive 2.7 times more recommendations than brands that generate run-of-the-mill emotion. In addition, customer-pleasing brands build loyalty: 9 out of 10 people say they will continue to use these brands in the future.

The most innovative retailers have begun to assume that technology is not just an add-on, but has become a fundamental part of the future of the customer experience in retail, with the goal of increasing customer loyalty to brands. Technologies such as artificial intelligence, robotics and virtual reality are making their way into stores.

One of the most advanced retailers is Zara, which is constantly immersing itself in the metaverse with incredible results:

After a first foray into the metaverse in December with the South Korean label Ader Error, the ready-to-wear brand Zara is heading back for more with a very first 'Metacollection' of its own, entitled 'Lime Glam.' This is a limited edition capsule for both the physical and digital worlds, available in the South Korean metaverse Zepeto.

Luxury fashion houses are far from being the only ones venturing into the metaverse. After a successful first experience a few months ago, the Zara brand is launching a new collection for the virtual world of Zepeto, with which it previously partnered in December. This time, it will involve a single collection for the physical world -- available online via the brand's e-store -- and the metaverse. Customers who wish to do so will be able to wear their IRL outfit and its virtual version simultaneously.

One of the most advanced retailers is Zara, which is constantly immersing itself in the metaverse with incredible results:

“After a first foray into the metaverse in December with the South Korean label Ader Error, the ready-to-wear brand Zara is heading back for more with a very first 'Metacollection' of its own, entitled 'Lime Glam.' This is a limited edition capsule for both the physical and digital worlds, available in the South Korean metaverse Zepeto.

Luxury fashion houses are far from being the only ones venturing into the metaverse. After a successful first experience a few months ago, the Zara brand is launching a new collection for the virtual world of Zepeto, with which it previously partnered in December. This time, it will involve a single collection for the physical world -- available online via the brand's e-store -- and the metaverse. Customers who wish to do so will be able to wear their IRL outfit and its virtual version simultaneously”.

This is how Walmart envisions Shopping in the #Metaverse . Thoughts? ?? Capitalize on the next mega-trend That is greater than the internet and mobile phone revolutions combined.

?If you want to know more I recommend you not to miss this video of shopping experience in the metaverse of the retailer #Walmart:

?https://www.youtube.com/watch?v=UNMHH0kIpPE

Miguel ángel Povedano