Virtual Experience & Metaverse

The world and the way we experience it are changing rapidly. Shopping malls and regular types of commerce aren’t disappearing, and probably won’t any time soon. Still, post-pandemic society has grown accustomed to possibilities previously considered niche – factors like virtual offices and online meetings were once reserved for isolated cases but have now become mainstream.

This trend is also rapidly moving into the world of commerce, and we can expect some changes to how we shop and do business thanks to the metaverse and virtual experiences. 

The metaverse is a term given to the next iteration of the Internet. When the World Wide Web started in 1989 and gained popularity in the 90s, it was a read-only platform – webmasters would add content to websites, but users could mainly read what they put up there with very little two-way participation.

Web 2.0 allows for better social interaction, and Web 3.0 allows users and website owners to customize the web for more personalized experiences, such as eCommerce platforms customizing their home pages to display products you are likely interested in.

The metaverse is the next phase in this evolution. It creates a virtual environment through virtual reality interfaces by enabling a unique type of interaction, either on the Web or through the use of VR and AR technologies.

There’s a common misconception that the metaverse is a platform created by Facebook. This is not the case, however. Facebook and its owner company, Meta, are some of the early adopters of metaverse technology. Meta’s ownership of the Oculus brand of Virtual Reality products gives it considerable power in developing the metaverse.

The metaverse does not belong to Meta any more than the World Wide Web belongs to Sir Tim Berners Lee, its founder. It’s part of the Internet that is “free” to be used by any company and private individual if they have the necessary components.

Other companies are also investing heavily in metaverse technology. For example, the popular game Roblox offers games and tournaments in the metaverse for those who want to participate. The metaverse provides many opportunities to explore a world beyond their own, and that filters through into various avenues of their lives, including:

• ・Gaming
• ・Social interaction
• ・Education
• ・Commerce
• ・Entertainment

Not only is gaming becoming very popular in the metaverse, but there are opportunities for virtual online classrooms. Schools are already using the technology to allow students to explore the solar system or see atoms up close.

As more people start to use the metaverse for its rich, immersive online experience, companies have discovered that it also offers a unique selling opportunity. Instead of traditional online ads like the ones on search engine results and in your social media feeds, the metaverse allows users to experience their products more dynamically before buying.

It offers businesses unique opportunities to market their products and services on the emerging metaverse in new ways. Systems like virtual tours, guided tours, and virtual showrooms can all be linked to your eCommerce platform to bring in direct bookings and sales from people who have had an experience and are ready for more.

Virtual experience combined with the metaverse offers a unique opportunity for companies to sell their products by simulating an in-person shopping experience with full product demos without needing a large storefront or expensive product displays.

The concept of the metaverse has been popularized in books and movies like Ernest Cline’s Ready Player One. The idea of escaping the real world to one with the potential to be whatever we want to make appeals to many people, and even though we are still far away from achieving a perfect metaverse, humanity is taking its first steps in that direction.

People enjoy the metaverse because of the opportunities it offers. Imagine attending a Zoom-type meeting in a simulated meeting room where you can see all the other participants in a life-like setting without leaving the comfort of your home. Or what about going to a movie theater to watch the latest Hollywood blockbusters, but without leaving your couch?

Those are just a few of the virtual experiences that people can enjoy in the metaverse. But what about businesses?

The metaverse is growing in popularity with companies as well. Just a few of the benefits include:

Companies can create an entirely virtual experience to help sell their products. Rather than showing a photo and product description on an eCommerce website, you can show a complete product demo as if standing in front of your potential customer, allowing you to get more sales without traveling expenses.

The metaverse allows for more accessible remote working opportunities. In 2020, at the height of the Covid-19 pandemic, Facebook released Oculus for Business to compete with other companies such as Spatial to offer Zoom-like experiences in VR, improving collaboration and creating a type of hybrid between remote and on-site work.

It offers a growing target market. It’s not just teenagers that use Virtual Reality for gaming; more and more people are entering the metaverse for various reasons, and companies that don’t take advantage of the opportunities are missing out.

The metaverse and virtual experience are entirely different concepts, though they are closely related.

The main characteristic of the metaverse is its complete orientation towards the socialization, albeit virtual, of customers. As the successor to the gaming world, in the metaverse, virtual spaces transform into meeting and purchasing places for your customers.

Some of the metaverse’s features include:

• ・ The use of avatars. People can create an avatar that can either be a virtual copy of themselves or someone entirely different. It gives users the freedom to be the person they want to be.

• ・ Blockchain technology is a central part of the metaverse since it allows users to safeguard their property and retain proof of ownership of a virtual product without the influence of a centralized organization.

• ・ Virtual products (NFTs) are commonplace in the metaverse. One example is virtual land, which is space in the metaverse that users can buy.

• ・ Immersive experiences. Through VR and AR, people can have an online, virtual experience that closely resembles real life.

• ・ Artificial Intelligence – Ai – is also becoming a common feature in the metaverse. For example, companies can create an avatar for an AI chatbot to assist their customers with basic queries.

• ・ The metaverse features decentralized governance. Decentralized Autonomous Organizations (DAOs) are governance bodies that use blockchain technology to make decisions on the future of the metaverse and changes that should be implemented.

• ・ Social interaction is one of the primary focal points of the metaverse. These interactions occur in a world that combines the real world and a virtual representation or re-imagining of it. Social interaction through virtual avatars is a cornerstone of the metaverse, whether for social media or commercial reasons.

The virtual experience is a natural result of the metaverse. You could say the metaverse is the platform that provides virtual experiences to its users.

A study published in the Journal of Interactive Marketing looked at the results and characteristics of virtual experience, specifically from a commercial point of view.

They noticed three key characteristics:

• ・ Presence. The study found that users experienced a virtual shopping experience similar to a real-world shopping experience. They felt their presence in a virtual shopping mall or product showroom was very similar to being in a mall or store in real life. This adds to the viability of using virtual experience and the metaverse to display and sell products.

• ・ Involvement. The study found that users would interact with a virtual product similarly to how they would work with a physical product. They could immediately perceive its relevance to themselves or others, and they even handled the virtual product the same way they would have if they were holding a physical product.

• ・ Enjoyment. The users that participated in the study indicated they enjoyed the virtual experience more than they would have enjoyed a similar experience in the physical world.

Consequently, we can see that companies should start virtual experience marketing campaigns as soon as possible. You can start thinking about ways to market your product in a virtual marketplace; opportunities like virtual tours, guided tours, and customizable 3D spaces offer a range of opportunities that were never available before.

From the study mentioned above, we can see that sales are more likely when you can give potential clients an in-depth, realistic experience that’s tailored to your product or service. This is not a one size fits all opportunity, so it will take considerable planning and strategizing.

As the metaverse gains momentum, it brings with it a new frontier for commerce, merging the physical and digital realms. To truly understand this shift, we must first grasp the underlying technologies driving it: blockchain and non-fungible tokens (NFTs).

At the core of the metaverse lies the blockchain, a decentralized ledger technology that records and verifies transactions across a network of computers. 

Unlike traditional systems, the blockchain eliminates the need for intermediaries, providing a transparent and secure platform for various applications. It has no centralized processing center or organization that owns and controls it, making it perfectly neutral and private.

The technology’s immutability ensures that once information is recorded, it cannot be altered in any way, which establishes a high level of trust.

Non-fungible tokens, or NFTs, are unique digital tokens that utilize blockchain technology to prove ownership and authenticity. These tokens enable creators to tokenize their digital content, including art, music, videos, virtual real estate, and more. 

NFTs provide verifiable proof of ownership and can be bought, sold, and traded within the blockchain ecosystem. This revolutionary concept has sparked a vibrant digital art market and opened up opportunities for content creators to monetize their work directly.

NFTs have sparked a lot of controversy, especially since “ownership” can be rather loosely defined within the realm of digital products. Some have jumped on the bandwagon and started selling items with no inherent value (such as memes) for ridiculous amounts of money purely because they are NFTs.

Blockchain technology and NFTs can be excellent if used correctly, and they offer many advantages, but there are also some disadvantages it would be wise to be aware of, especially within the realm of the metaverse.

Here are the main advantages and disadvantage of social commerce in the metaverse:

As we’ve seen, the metaverse provides an immersive environment where users can interact, socialize, and engage with brands and products in entirely new ways. Social commerce in the metaverse enables businesses to create unique and interactive experiences that captivate customers and foster brand loyalty.

This can drastically improve a company’s brand awareness and marketing efforts and have a direct impact on sales. It eliminates much of the doubt left in customers’ minds after regular online ads and involves the user in a more hands-on way.

The metaverse leverages user data to deliver highly personalized experiences. Through the integration of machine learning and AI, businesses can tailor product recommendations, offers, and advertisements to individual preferences, increasing the likelihood of conversions and customer satisfaction.

We’ve also seen how this personalized experience can be customized and tailored to specific users, making your marketing efforts even more effective.

 Since the metaverse transcends geographical boundaries, social commerce opens doors to a global customer base. Businesses can now tap into previously inaccessible markets and target niche audiences, resulting in increased sales and growth opportunities.

While the metaverse offers exciting prospects, not everyone has equal access to the necessary technology and resources. The digital divide, characterized by disparities in internet connectivity, device availability, and digital literacy, poses a challenge to the widespread adoption of social commerce in the metaverse.

For example, only 171 million users globally regularly use VR technology. That’s a huge number, but it’s only approximately 2% of the current world population. In the United States alone, around 20% of people own and use VR.

This percentage is likely to increase as the technology becomes more affordable, but at the moment, cost is a limiting factor.

Safeguarding personal information and ensuring secure transactions will be vital for the future of social commerce in the metaverse.

As commerce increasingly takes place in the digital realm, privacy and security become critical concerns. The collection and use of vast amounts of user data within the metaverse raise questions about data privacy and protection. 

The blockchain helps considerably in this regard, but the metaverse is not inherently more secure than the regular World Wide Web.

Although blockchain technology provides a foundation for transparency and trust, the metaverse still faces challenges in ensuring the authenticity of digital assets. Counterfeit or fraudulent NFTs can dilute the market and erode trust among buyers and sellers.

There are many lucrative and legitimate NFT assets for users to purchase and invest in, but it will become more challenging to filter out the counterfeits. Addressing these concerns will be crucial to maintaining a healthy and thriving social commerce ecosystem.

Even though the metaverse is a great platform for selling NFTs, you can also sell real-world products and services, but it requires a slightly different approach because of the advantages and disadvantages we just discussed. It is worth it, though, since virtual experience can transform shopping in many (good) ways.

Virtual storefronts and tours offer convenience, since people can shop at any time, day or night, without leaving their homes. This is true of normal eCommerce as well, of course. But a virtual experience adds an additional layer to that as we will now see.

Virtual experiences effectively bridge the gap between the physical and digital realms. Augmented reality (AR) and virtual reality (VR) technologies enable consumers to see products in a more immersive and realistic way. 

Clothing retailers can use AR technologies to let customers try on clothes in a virtual dressing room. Homeowners can plan their redecorating by seeing exactly what their home would look like with a particular color paint or wallpaper. Furniture retailers can let their clients try different pieces of furniture in a virtual recreation of their home to see if it would fit or not. 

VR takes it a step further by creating a fully immersive environment where customers can explore virtual stores or test-drive virtual vehicles. They can handle 3D models of your products and see their relevance. By enabling customers to interact with “physical” products, virtual experiences provide a deeper level of engagement that traditional online shopping cannot match.

The current version of the web is built on a foundation of creating personalized recommendations. The ads that one person sees will differ from those served to another. It’s all about personalization. Similarly, virtual experiences leverage these same advanced algorithms and machine learning to offer personalized recommendations and curated shopping experiences. 

By analyzing user preferences, purchase history, and browsing patterns, virtual platforms can suggest products that align with individual tastes and interests. This personalized approach not only enhances the shopping experience but also saves time by presenting consumers with options tailored to their preferences. 

This means that you can reach the right clients and attract them to your virtual showroom. Additionally, virtual experiences allow for the creation of virtual showrooms or customized interfaces that cater to specific customer segments, as mentioned in the earlier examples of product customization, providing a unique and tailored shopping experience for different demographics. 

In other words, when people find your virtual showroom, the algorithm can automatically recommend a product that they will most likely be interested in.

Shopping has always been a social activity, and virtual experiences have taken it to new heights. Online marketplaces and virtual storefronts facilitate social interactions through features like customer reviews, ratings, and user-generated content. Shoppers can engage in discussions, share their experiences, and seek advice from fellow consumers, creating a sense of community and trust. 

Virtual experiences also allow you to host social shopping events, such as virtual fashion shows or product launch parties, where customers can interact with brands and fellow shoppers in real time. These social elements add an exciting dimension to the shopping experience, making it more fun and interactive.

Virtual experiences break down geographical barriers and provide access to global markets. Standard eCommerce platforms and virtual marketplaces already allow small businesses and independent sellers to reach customers worldwide, expanding their customer base beyond local limitations. 

Similarly, consumers in the virtual showroom can explore and purchase products from international brands without leaving their homes. This global accessibility fosters cultural exchange, promotes diversity, and provides opportunities for unique and niche products to thrive. There’s no longer any need to fly to Paris or Dubai to shop – you can visit them instantly from the comfort of your living room.

As we can clearly see, the metaverse and virtual experiences cater perfectly to the consumer. But what are the benefits for the company? Why should a business replace or reinforce its physical storefront with a virtual marketplace in the metaverse?

The metaverse allows businesses to display their products in a way that attracts customers they would not normally have attracted.

For example, it’s safe to assume someone walking into a Lamborghini showroom is familiar with the brand, can likely afford it, and is possibly interested in purchasing one. The rest of the market simply walked past, even if they could afford it and would be interested in buying if they knew some of the features.

The marketing algorithms that ad platforms like Google and Facebook use can be far more effective in the metaverse, where you can display your products in a far more compelling way to people who are likely to be your ideal customers but don’t know it yet.

Now that you’ve attracted potential customers, the virtual experience aspect lets you show off your product in a way that standard web ads can’t do. You can customize the product to the user and allow them to handle it and look at it from all angles, immediately increasing its relevance and improving the likelihood of a purchase.

The web already allows companies to interact with and meet their customers, but it usually happens in an impersonal, faceless way through social media pages and customer review sites.

The metaverse adds a dimension of personal interaction that doesn’t really happen online. Even though you might mainly interact through avatars, meeting face-to-face and communicating live are priceless for driving customer satisfaction, getting repeat business, and building an excellent reputation in the marketplace.

In the mid-1990s, knowledgeable experts like Clifford Stoll predicted that the Internet would never amount to anything in terms of sales and commerce. How wrong they were. Back then, the World Wide Web seemed like a passing fad, but visionaries saw the potential and reaped the rewards by getting into eCommerce when they had the chance.

The metaverse is still fairly young but many of the world’s wealthiest individuals are investing billions in the technology. It really is the future of commerce, and it provides a unique opportunity to sell even more products by creating custom virtual experiences.

Are you looking to find the perfect experience for your brand? Look no further than In2real – your ideal partner for identifying the best fit.