Ten tips for entering the metaverse
As the era of omnichannel and experiential retailing comes of age, we give you ten things to think about before setting up shop in the metaverse.
Once the province of online gaming and social media, the metaverse is the new hot topic in retail. Over the past couple of years, many retailers and brands have dipped their toes into the metaverse. With the growing interest and investment in the metaverse, this is creating new opportunities for connecting with customers. It might not happen overnight, but it’s only a ‘meta’ of time before we are likely to see mainstream entry to the metaverse by retail businesses wanting to ride the omnichannel wave from virtual engagement to real‑world success.
Develop your strategy
The number of metaverses and possibilities within them are potentially infinite. Ensuring you have the right focus is crucial, such as understanding which metaverse you want to be involved in, what the active demographic within that metaverse is, and what you are trying to achieve within that landscape (eg create a community for brand engagement, offer complimentary services to the real world experience, or develop a new revenue channel).
Budget accordingly
The costs of being in the metaverse should not be underestimated. Prices can fluctuate dramatically and investing in virtual property might set you back a fair amount, especially if you want Snoop Dogg as your virtual neighbour. On top of that you will need to think about the costs of transacting and meeting legal requirements in multiple jurisdictions, depending on your plans.
Set up your data to work for you
The metaverse may allow for the collection of vast amounts of customer data. Whilst this has massive potential from a customer reach and insights perspective, it also presents a significant compliance challenge on a global scale.
Get your IP in order
The metaverse may allow for the collection of vast amounts of customer data. Whilst this has massive potential from a customer reach and insights perspective, it also presents a significant compliance challenge on a global scale.
Ensure your contract matrix works
Where possible, ensure your existing IP is properly registered (including in the correct virtual/digital classes and/or adding classes to existing trade mark registrations), and register any new designs for existing/new digital goods. You should also ensure your contracts are clear as to who owns any new IP created in the metaverse, and that you have the necessary licences for any third-party content.
Listen to your regulators
Regulators have indicated that existing rules that are applicable to the digital and online world apply equally in the metaverse. Don’t assume that your approach to compliance in the real world will operate in the same way in the metaverse, as in the metaverse the rules are being applied in a novel context. You may find there are additional regulators to engage with, eg the FCA for cryptocurrencies, the ASA for advertising regulations, the CMA in relation to consumer protection, and tax authorities for issues such as VAT treatment.
Follow the customer
Keep track of your customers and predict their needs and desires. Depending on your sector and products or services, your customers might be early adopters in the metaverse space, or they might be brand new to the metaverse and the ways it can meet their changing demands and expectations.
Consider your workforce
Your activities in the metaverse may require additional talent investment, with digital product and marketing teams needing to be expanded, restructured or outsourced in order to build out your metaverse skill set.
keep experimenting
Explore, and where possible try out the tech currently available to see what will work for your business. Could AI bolster and target your customer service offering? Or could you experiment with NFTs to enhance consumer experience? Or could gamification be, erm, the name of the game?!
Watch and learn
Keep an eye on your competitors’ metaverse activities. What are they trying and on which platforms? What appears to be working well for them and what doesn’t?
If you’d like to talk more about the metaverse, please contact Paul, Tania or Olly.
To find out more about RPC and the services they provide to the retail industry, click here.
This article was also published in The Retailer, our quarterly online magazine providing thought-leading insights from BRC experts and Associate Members.