Customer experience in the metaverse: A CX Network Guide

Everything you need to know about the future of customer experience in the digital world

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Jerome Smail
03/03/2023

This guide explores how the metaverse will transform customer experience, featuring real- life case studies of companies that are already using this immersive technology successfully.

In this guide:
• What is the metaverse?
• What does the metaverse mean for customer experience?
• How are brands using the metaverse to improve CX?
• What do customers think of the metaverse?
• The future of CX and the role of the metaverse

If you haven’t yet found your way to the metaverse – a broad term describing the digital space created by immersive, interactive technology – then it won’t be long before the metaverse finds you.

In its simplest CX form, the metaverse is the latest string in the omnichannel bow.

According to Gartner analysis, by 2026, 25 percent of people will spend at least one hour a day in the metaverse for work, education, socializing, entertainment or shopping. Futurists believe metaverse technology will be at the heart of the highly anticipated Web 3 revolution.

But it’s not just about the future – many companies are making bold journeys into the metaverse right now. Writing for McKinsey & Company, Homayoun Hatami, Eric Hazan, Hamza Khan and Kim Rants insist the metaverse “is in the zeitgeist”. They estimate that the market value of metaverse activity in June 2022 was between US$200bn-$300bn, and that figure could reach as high as $5tn by 2030.

It is no surprise, therefore, that the metaverse has been singled out as one of the key drivers of CX in 2023.

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What is the metaverse?

The term metaverse was first coined by Neal Stephenson in his 1992 science-fiction novel Snow Crash. Adopted by Mark Zuckerberg and adapted as the new name for Facebook in 2021, today the metaverse is Meta’s vision for a fully digital, immersive reality space where people – and brands – can meet and interact.

Key features of the metaverse include:
● A sense of immersion
● Real-time interactivity
● User agency
● Platforms and devices working seamlessly together
● People interacting simultaneously

Many people think of the metaverse as simply a 3D virtual reality (VR) experience, but there is much more to it.

According to McKinsey & Company, the metaverse represents “a convergence of digital technology to combine and extend the reach and use of… artificial intelligence (AI), augmented reality (AR) and VR, spatial computing and more”.

Fabio Moioli, head of consulting and services at Microsoft, explains that the metaverse is not a single virtual world but rather a “network of interconnected virtual worlds… giving users a wide range of choices and options for their experience”.

According to Ramon Llamas, research director for IDC’s AR/VR team, the metaverse is developing in a number of different ways through various technologies including VR/AR glasses, smartphones, tablets, PCs and chat rooms with video, as well as “up-and-coming things like holograms, digital signage, digital assets, and digital content”.

What does the metaverse mean for CX?

MIT Technology Review predicts the metaverse will “transform CX in the same way e-commerce shook up retail in the 1990s and mobile reimagined social interactions in the early 2000s”.

One of the key reasons the metaverse has the potential to change CX so profoundly is the depth of engagement offered to customers, strengthening connections and allowing consumers to involve themselves in the brand journey.

Although it is early days, brands are already getting ahead on crafting and deliver their early metaverse experiences.

US baseball team Minnesota Twins showed how the metaverse can be a CX game changer – literally – with the launch of the ARound app in August 2022. The technology allows fans to point their phone at the field and access a range of 3D spatial computing features such as graphical illustrations of statistics and a range of games that interface with the stadium and fellow fans.

Also in the realm of sport, FIFA used a whole host of innovative digital tools to engage with fans and build momentum for the Qatar 2022 World Cup.

How are brands using the metaverse

Nikeland

Utilizing the Roblox gaming platform, Nike’s virtual world is one of the highest profile examples of big brands leveraging the power of the metaverse. Immersed in Nikeland, players can interact with Nike-branded virtual goods and apparel through various activities and even meet virtual sports stars like LeBron James.

Nike went live with its web 3 enabled platform SWOOSH in November 2022, offering a digital community experience for customers and its virtual creations.

The Memory Mirror

In the world of fashion, VR has been embraced by several high-end brands. Neiman Marcus was an early adopter of CX in the metaverse with its digital Memory Mirror, offering customers a 360-degree view of potential outfit choices. Similarly, in 2018, Gucci introduced an in-store VR experience using the theme of surreal visuals produced by Spanish artist Igansi Monreal. French fashion group Printemps also has a virtual store – and it was developed and launched in just 70 days.

Virtual cosmetics

AR/VR provider ByondXR has helped create omnichannel immersive shopping experiences for brands including L’Oréal, Lancome, Armani and Estée Lauder, with virtual stores using features such as gamification, virtual try-ons and avatars to engage customers. According to ByondXR, the metaverse experience produces a 400 percent increase in time spent in the store by customers and a 240 percent boost to brand loyalty.

AR in baseball

US baseball team Minnesota Twins broke ground in the fan experience space with the release of ARound, which is believed to be the first shared augmented reality (AR) application for live sports.

While not technically the metaverse, the AR app allows fans to see graphical illustrations of in-game statistics and play other games while watching the baseball game. The other games include AR versions of Batter Up, Blockbuster, and Fishin' Frenzy, all of which interface with the stadium and fellow fans, to offer a new level of fan engagement.

The Twins’ senior director of brand experience and innovation Chris Iles sais the new immersive experience has “some real power and some real legs”.

“It is aware of everyone around you that is using the app at the same time, creating a shared experience and creating some context around an event that frankly has never been done before,” Iles remarked. “That excited me and the Twins.”

What do customers think of the metaverse?

Consumers are certainly noticing the benefits of CX in the metaverse. For example, writing for Harvard Business Review, Sandeep R. Chandukala, Srinivas K. Reddy and Yong-Chin Tan, note that customers respond well to AR applications and are “becoming reliant on the tools to make purchase decisions”.

The authors cite a NielsenIQ survey where 56 percent of shoppers said AR gave them more confidence in product quality and 61 percent expressed a preference for retailers that offer AR experiences.

However, there are challenges to overcome. A survey of American consumers conducted by TELUS International found “feeling disconnected from reality” was a top reason for being “uncomfortable” in the metaverse. This emphasises the need for brands to create environments where customers feel authentically engaged.

But with the same survey showing 72 percent of consumers expect the metaverse to replace many real-world brand interactions, it is fair to conclude that this latest digital revolution will make a very real difference to CX for decades to come.

The future of CX and the role of the metaverse

As Kevin Rose, Tye Chait and Adrian Trzaskus of Deloitte observe: “Now, retailers can engage customers outside of shopping experiences through curated digital content in virtual environments.”

Sébastien Borget, COO and founder of video game The Sandbox, believes “we are seeing the brand-customer relationship evolve before our eyes” as a result of the metaverse.

“It is no longer transactional but focuses on creativity and a sense of innovation and experimentation,” he explains.

These examples show that the metaverse doesn’t just increase the depth of the customer experience – it also broadens the scope of customer engagement.