Marketers need a way to meet customers where they are. This is increasingly happening in virtual worlds, where NFTs and Metaverse actions can increase awareness, increase sales, and build loyalty Preston Woo, CFO and Head of Strategy for Tafi and Daz 3D.
Brands are still adapting to the rapid shifts in consumer expectations and buying habits that are already evolving but accelerated during the COVID-19 pandemic. The most successful companies in recent years have been those that have responded quickly to changes in how customers learn about and buy products. Now brands are looking for new ways to meet customers where they are, including in virtual spaces.
To increase brand awareness, build customer trust, foster customer loyalty, and increase sales, many top brands use augmented reality (AR) and NFTs. Other brands use the creativity of their superfans to create unique messages and memorable consumer experiences. Along the way, marketers will need new skills to stay ahead of the curve as the Metaverse gains more mainstream traction.
The current situation is analogous to the evolution of brand marketing experienced with the advent of the internet and the ubiquity of mobile apps. Big brands are building a presence in the metaverse, which means it’s a good idea for marketers working with brands of all sizes to stay up to date on how the discipline is evolving. Here’s a closer look.
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Using avatars and NFTs to communicate values and deepen relationships
People want to do business with companies that share their values. Diversity and inclusion are core values for top beauty brand Clinique. The company recently collaborated on one with artists like Sheika Daley and Emira D’Spain NFT collection celebrating “the beauty of all skin everywhere,” including the Metaverse. The brand has also partnered with Daz 3D to make the metaverse more inclusive. Clinique’s avatar project communicates the company’s values while appealing to consumers who share its ideals.
top sportswear companies, championfostered brand trust and loyalty by launching a range of apparel and accessories NFTs for brand superfans to wear in the Metaverse, including branded hoodies and sweatshirts. Coke, one of the most recognized brands in the world, has collaborated with leading device manufacturer Samsung and our team at Daz on a series of augmented reality avatars and digital apparel projects. The branded apparel is available to customers exclusively on the Samsung Galaxy AR Emoji Marketplace.
NFTs are a unique marketing asset as they allow consumers to connect with the brand while the brand retains control of the assets through blockchain technology. As brands like RTFKT, a leading developer of virtual sneakers, collectibles and experiences, have demonstrated that companies can license fans to interpret the brand by creating memorable digital artifacts. Meanwhile, marketers continue to learn valuable skills through experimentation in virtual worlds.
Brands use virtual reality to drive sales in the real world
Building communities of reference is, of course, nothing new. Brands have been doing this in the analogue world for generations – the Mickey Mouse Club in the early days of television is just one example. A fandom like that Pearl Jam 10 Club is another – the popular band uses analogue and digital club membership to connect with fans and provide access to exclusive content.
Now, brands are using NFTs in a similar way, and this is driving real-world sales. A recently Wall Street Journal The article outlined the extent of the possibility, noting that a McKinsey study projects that Metaverse spending will reach $5 trillion by 2030. The overwhelming majority of consumers surveyed, 79%, said they had already made a Metaverse purchase. Approximately 47% of these people reported making in-game purchases and 37% reported purchasing virtual cosmetic items. About 33% also reported purchasing real-world items for sale in the metaverse.
Interviewed executives told McKinsey they expect the Metaverse to be good for their industry within five to 10 years; 95% believe it will have a positive impact on them. About 25% expect Metaverse to account for 15% of their total margin growth five years from now. The article points out that brands that have taken the plunge, including fashion brand Forever 21, have reaped the benefits, building greater brand awareness in virtual reality (VR) communities like Roblox and seeing a surge in real-world sales of virtually advertised clothing.
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New skills for a new era
Many marketers are understandably reluctant to invest in metaverse marketing as virtual reality is not yet fully mainstream. But consumer acceptance of virtual worlds, digital identities and related accessories is growing, especially among younger customers. Because of this, big brands are striving to establish a presence now, just as they did when the internet and apps emerged in previous eras.
Now is the perfect time for brands to expand their comfort zone and explore new ways of engaging with customers. Brand marketers just starting out can work with a partner with Metaverse’s experience and knowledge to implement a successful NFT marketing strategy. This is a great way for brand managers to explore virtual reality marketing opportunities, including crossovers that combine traditional and metaverse-based marketing campaigns.
At the very least, marketers should keep an eye on how marketing is evolving in the metaverse and consider opportunities to leverage digital assets like NFTs. The metaverse is changing fast, but the underlying technology, including blockchain, is uniquely suited to helping brands stay in control while unleashing creativity to reach customers where they are.
How are you adapting your marketing strategies to engage with customers in the age of NFTs? let us know Facebook, Twitterand LinkedIn.
