Navigating Uncertain Times: How Companies Can Communicate Effectively and Address Consumer Strategies, and the Role of the Metaverse
Jarek Nowak
Founder of Naoco Digital - providing real estate professionals with YouTube marketing services to attract quality leads and build a trusted personal brand through strategic, engaging, and expertly crafted video content.
Learn how companies can effectively communicate with their audience during uncertain times by understanding and addressing their needs and concerns. Discover the four main consumer strategies for dealing with uncertainty and the role of the metaverse and mixed reality in elevating marketing and engagement.
The war in Ukraine will reach a one-year mark on February 24, 2023, COVID-19 still casts a faint shadow over the world, and the possible economic recession is about to test the depth of our wallets. "May you live in interesting times." Well, somebody must have wished it a little too much. The word "interesting" has a brother who's made a quick career since the outbreak of the coronavirus pandemic in 2020. His name is "uncertain."?
There seems to be so much unpredictability in the world due to political (e.g., storming of the United States Capitol), economic (FTX crash, inflation), or social factors (divisive misinformation and conspiracy theories) that create instability or insecurity. I'm using the word "seems" deliberately. In the history of humankind, there has been no such thing as "certain" times, even since Pax Americana, marking the beginning of an unprecedented period of relative peace after World War II.
No matter the times we live in, since ancient times and especially after the industrial revolution, the idea of marketing and advertising has remained the same – companies have to communicate; only contexts change.?
And the tools. Companies are using big data and analytics to process large amounts of data on consumer behavior and preferences. This helps create more effective marketing campaigns, better understand customer needs, and open doors for highly personalized marketing experiences, such as product recommendations, email campaigns, social media ads, and chatbot or in-store interactions.
All these marvelous technological achievements eventually must go through a catalyst that is as old as the ability of humans to tell stories - a narrative. We're living in uncertain times. Is it bad? Is it good? Neither? All answers are accurate and depend on every person's attitude and strategy to tackle this issue.
During a study for the project Trend Impact 2022, the Polish Society of Opinion and Marketing Research (PTBRiO) recognized four main consumer strategies for so-called "uncertain times":
For companies, the way to crack the code to effective communication is to understand their audience's needs and concerns and address those in their messaging.
Prevention – We'll help you to be ready for whatever comes.
What people with the preventive strategy care about the most is to be prepared to protect the pillars supporting their life. It can be their family, work, finances, and personal well-being. They are willing to take courses, undergo training, maintain good health, level up their skill set, and become a pro in everything they do. That's why they pick up new languages, buy diet supplements, learn personal finances, programming, how to shoot a gun, and even how to become professional parents.?
Companies looking to engage with such consumers can:
No matter the message, the intention, and the language must be rational, supportive, and genuine:?“We're here for you, and we got you.”
Escapism – We'll help you forget about reality.
For some people, the real world is just too much to bear. They seek distraction, entertainment, and a great escape from reality and its problems. No wonder the global video game industry revenue growth during the pandemic was significant, with some reports indicating that it increased by more than 29% in 2020. This brought the total global revenue for the industry to over $155 billion [1], compared to $120 billion in 2019 [2]. As for books, in the US, according to the Association of American Publishers, overall book sales increased by 12,3% in 2021, reaching an all-time high of $29,33 billion [3]. A study by the Motion Picture Association discovered that worldwide subscriptions to video streaming services, such as Netflix, Hulu, and Amazon Prime Video, have risen to 1.1 billion, a growth of 26% compared to the previous year. The report also found that the overall home and mobile entertainment market generated $68.8 billion in revenue, reflecting a 23% increase from 2019 [4].
Companies looking to engage with such consumers can:
Providing a sense of distraction and entertainment and helping focus on something more lighthearted and enjoyable. That's the name of the game. The metaverse development and broader implementation of AR and VR will elevate it to a new level. More on that later.
Adaptation – We'll help you bite the bullet and get along.
In the army, a step-by-step process for embracing unpredicted and challenging situations goes as follows: take a deep breath, look around, prioritize, and execute. Even though most people are not military, many put the same principles into practice daily. Instead of running from reality, no matter how difficult or uncertain, they choose adaptation.?
Those people are open to new opportunities, trying new technologies, and finding creative solutions. Their resourcefulness and ability to bounce back from setbacks and continue moving forward deserve recognition. The social aspect is pivotal. In their pursuit of making the ever-changing circumstances a new normal, rather than waiting for things to happen, they take the initiative and proactively work to make life better for themselves and their community.
Companies looking to engage with such consumers can:
In communication, companies should focus on providing helpful information, resources, and solutions that support their audience in navigating their challenges. They can also use a tone of empowerment and positivity and focus on opportunities for growth and improvement.
Destruction – Let's make a change together!
There’s one big "NO!". No to the current economic situation, no to divisive politics, no to invasive technology, and no to the changing world order. Undoubtedly, destruction is the most dramatic and emotionally charged strategy. It's worth noting that people following it want to fight a change with change. So, their concern is not the mere matter but the direction it's headed.?
The destructive tendencies externalize through language brutalization, disturbing imagery, or social protests. But they can also take an internal form, and this is where things get dangerous, if not to say lethal. World Health Organization (WHO) estimates that each year, around the world, close to 800,000 people die due to suicide which is one person every 40 seconds.?
In this light, companies should approach their messaging with great care and sensitivity. They can:?
It's all about saying no to the current status quo, aligning with the audience's values, and promoting messages of change, togetherness, and social justice. The language of revolution is acceptable, but it's dangerous and must be used carefully.
The Metaverse: Confusion, pain points, and implications of the new Internet.
The metaverse can be perceived as one of those significant upcoming changes that cause uncertainty. This "new Internet" concept is confusing and raises many doubts.
领英推荐
The term "metaverse" was coined by Neal Stephenson in his 1992 science fiction novel "Snow Crash." In the novel, the metaverse is a virtual reality-based successor to the Internet.
As you can see, the idea is not new, but as long as it stayed in the realm of fiction, there was nothing to worry about. Today it's knocking at our doors, and it is pretty darn real.
I have to mention several pain points here. For starters, there's no agreed-upon definition or standard for what the metaverse is or should be. Will there be only one metaverse, just like there's only one Internet, or will there be many? Indeed, it involves a variety of technologies, such as virtual reality, augmented reality, and artificial intelligence, which can make it challenging to grasp for people with no technological background. On top of that, it raises many privacy and security concerns, including some that humanity has never had to deliberate on before. For example, if my avatar in the virtual space does something considered inappropriate in the real world, will it meet the same social backlash? The implications of the metaverse are just as vast as unpredictable.
It is easy to predict that this virtual and interactive space will offer a new channel for companies to communicate and interact with consumers, allowing them to create more immersive, engaging, and interactive experiences.
Before we jump to examples, I want to stress that they focus mainly on the VR aspect of the metaverse. First, they trigger the imagination. Secondly, I'm not a metaverse prophet, and I believe that reality can surpass all predictions. Some companies are already taking advantage of the technology, offering VR experiences, and positioning themselves as progressive leaders. But the new Internet will be more about merging the virtual world with the real one. The word "phygital" is worth noting. It refers to products and services existing in both worlds. For example, if you buy digital shoes for your avatar, the manufacturing company can send you the real counterparts.
A game-changer for consumer strategies and brand engagement.
Let's come back to our four consumer strategies. For people wanting to prepare for "the worst," virtual training programs and simulations can offer education and skills development in a safe and controlled environment. Companies can also showcase, more immersively, how their products or services can help consumers protect what they value the most.
The metaverse will also be the obvious destination for people wanting to escape from reality. Even today, some brands are using VR to offer virtual vacation experiences (Marriott Hotels), spectacles (Cirque du Soleil), theme parks (The Void and Dreamscape Immersive), gaming (Roblox), art galleries, events, and much more.?
For adapters, the metaverse will also change how people work, shop, and run their everyday chores. Today, virtual reality platforms like Spatial or Meta Horizon allow users to collaborate in real-time with others in a virtual office space, complete with tools for meetings and presentations. Companies like Warby Parker, Sephora, and other fashion and beauty brands invite customers to try on their products virtually.?
Consumers with the destruction strategy are the group that raises a few question marks regarding their relationship with the metaverse. After all, we're talking about the new Internet. It's all about the change. The question is – is the direction of this change desired? Some people do not want the development of a metaverse to happen. They have concerns over privacy and security and potential adverse effects on real-world social interactions and relationships. Additionally, they are worried about the potential for the metaverse to be controlled and monetized by a small number of large companies or organizations, leading to a loss of individual autonomy and control over one's online presence.
On the other end of the spectrum are people perceiving the metaverse as a powerful medium to instill awareness about social, environmental, and political issues. Companies that want to meet them can use the metaverse to showcase their commitment to those causes. Today, non-profit organizations like The Ocean Agency, World Wildlife Fund, and Greenpeace use virtual reality to put before our eyes, quite literally, the matter of climate change, deforestation, and animal welfare. IKEA and Unilever give consumers a virtual tour of their sustainable practices and the impact of their products and services on the environment.?
From consumers to partners.
Decentralization and ownership are critical aspects of web3. Even though we shouldn't put an equal sign between web3 and the metaverse, the revolution in thinking about consumers will surely affect the latter. In this new digital world, anyone ready to shell out the money on virtual assets, such as plots of land or billboards, can rent them out to companies for advertising purposes. This allows for a new level of autonomy and control for individuals in the digital space, as they can monetize their assets and shape the virtual landscape as they see fit. They won't be just consumers but partners. Companies should already consider how they can address this in their future strategies.?
Summary – Listen and don't mix.
Even though humans have been living in uncertain times since the dawn of their history, in the last few years, the unpredictability of the future has become an omnipresent topic of public discourse and private conversations. Companies cannot turn a blind eye to this. They must invite their audience to the dialog about values and help them cope with this reality and the future. The metaverse will elevate the game of marketing, advertising, and engagement to the next level, providing new immersive and interactive tools. But it will not change the golden rule that effective communication begins with understanding the audience's needs and concerns and addressing them in the messaging. Companies should stick to one route and target only a specific type of audience because different consumer strategies require different approaches. Mixing them will raise confusion and loosen the connection between a consumer and a brand.?
And that one thing is certain.
Key takeaways
There has never been such a thing as certain times.
PTBRiO's 2022 study revealed 4 strategies for uncertain times: prevention, escapism, adaptation, and destruction. Companies can connect with their audience by understanding their needs and addressing them in their messaging.
Prevention - Companies can offer flexible payment, prioritize safety, support skill acquisition, and provide genuine support and understanding to engage with consumers.
Escapism - Companies can engage with consumers by offering adventure, art supplies, spa services, yoga classes, VR experiences, travel planners, and meditation apps for distraction, entertainment, and escape from reality.
Adoption - Companies should provide resources and info to help their audience while emphasizing empowerment and positivity to focus on opportunities.
Destruction - Companies should use messaging to promote change, togetherness, and social justice while being aware of potential danger. Spark peaceful collaborations, provide tools & platforms to amplify marginalized voices, change business practices to meet the world's needs, and educate people about problems & solutions.
Metaverse is complex and raises privacy/security questions. It involves VR, AR, and AI and has far-reaching implications.
Web3 enables individuals to monetize virtual assets, allowing them to shape the virtual landscape. Companies should partner with consumers, not just treat them as ones.
Companies must understand their audience's needs and focus on one type to connect with them.
#ConsumerStrategies #EffectiveCommunication #MarketingCampaigns #CustomerNeeds #NarrativeMarketing #Metaverse
Footnotes
[1]?https://www.investopedia.com/articles/investing/053115/how-video-game-industry-changing.asp
[2]?https://www.marketplace.org/2020/01/03/gaming-sales-top-a-record-120-billion-in-2019/
[3]?https://publishers.org/news/aap-statshot-annual-report-for-2021-book-publishing-revenues-up-12-3-for-the-year-reaching-all-time-high-of-29-33-billion/
[4]?https://www.motionpictures.org/wp-content/uploads/2021/03/MPA-2020-THEME-Report.pdf