Thought Piece | Thought Piece
The impact of web3 on the customer experience
by Liam Springate-Jones
As the technology continues to evolve, the metaverse has the potential to become the ultimate brand experience. To build brand loyalty in today’s ever-changing digital landscape, brands need to create experiences and customer journeys that exceed purchases in the real-world. By tapping into digital experiences and assets through the metaverse, brands can pave the way for brand advocates. In doing so, brands drive further awareness and offer a unique service that is carefully integrated into the brand experience.
The metaverse, then, could be an essential driver of brand utility – which is when a brand engages with a consumer before purchasing. While it’s hard to predict the future of technology, the metaverse will certainly have a huge impact on how brands interact with customers. Below, we discuss how the metaverse will reshape and be a key driver of brand loyalty.
Brand loyalty revolves around how customers perceive a brand and its values, which is important for retaining customers and increasing revenue. It’s an essential part of any brand’s digital strategy because understanding how to build relationships with customers, and creating an authentic identity enables a business to become a self-sustaining model.
Customers who are truly brand loyal will have an emotional connection to the brand and understand its tone of voice and sense of purpose at every touchpoint in the customer journey. Brand loyalty is important for improving reputational trust, customer service and it contributes to the entire brand experience.
There’s a range of companies with famously high levels of brand and customer loyalty that demonstrate the power of continuously nurturing relationships with your audience. Let’s take the below examples:
Starbucks is not only the leading coffee chain in the world, but it also boasts a quality loyalty program to increase customer interaction. According to research, loyalty reward members made up 53% of the company’s operated revenue, with active memberships having grown to 3.2 million in fiscal Q3 2022.
Walmart is leading the way in the retail sector for its average consumer loyalty. The brand has continued to improve its customer experiences-for example, by offering an express two-hour delivery and an InHome programme, a direct-to-fridge delivery service that provides a succinct, seamless shopping experience for customers’ individual needs.
Through brand loyalty, a business has a competitive advantage. It helps businesses stand out in a crowded market because it demonstrates the impact their products and services are having on customers. Now, with the advancement of digital technology, brands can elevate further, and take advantage of the metaverse.
The metaverse is growing at a rapid pace. With its roots in gaming, the metaverse has become a leading innovation and now appeals to a much wider audience, which is a huge benefit for brands. In the metaverse – which is built upon a decentralised system - brands can engage with customers and build loyalty in a new way. It presents a new era of customer connectivity and opportunities to monetize products digitally.
With digital branding being all about establishing a presence amongst consumers, the metaverse offers a user-friendly way to strengthen relationships and ensure customers continue to engage with a brand. Alibaba launched a series of metaverse upgrades to better connect with its Chinese audience. The luxury brand hosted an augmented reality fashion show on its e-commerce platform, demonstrating just how powerful the metaverse can be for reaching and engaging audiences. The metaverse is changing the way people engage with brands, as well as making customers more likely to stand by them, and recommend a product to friends and family.
According to research, 70% of customers who have visited a virtual store have made a purchase. The metaverse has the power to drive brand loyalty through the enhancement of the customer experience. While the metaverse isn’t yet the dominant force in digital technology that it could be, there’s still a world of potential and opportunities for the modern customer experience.
For example, social commerce is playing a massive part in e-commerce and the metaverse has already offered brands a way to provide virtual points of sale to customers, as well as non-refundable tokens and virtual events. The metaverse elevates the customer experience by pushing the brand closer to the target audience, to forge a deeper relationship where the customers remain loyal.
It provides a future where customers can spend time engaging with a brand from any location, which creates a seamless experience. To create loyalty in the metaverse, brands need to deliver a truly immersive and personalised experience that’s tailored to their customers’ needs. As business becomes increasingly competitive, the metaverse could serve as a unique differentiator for any brand that’s seeking long-term growth and success.
Do you want to learn more about how the metaverse can add value to your business? The Splendid UNLIMITED team have the experience and expertise to help you. We’re digital experience experts knownfor developing brand identities and digital strategies to realise business goals. If you’re keen to develop a metaverse project for your brand, register your interest for our workshop. It’s a chance to get the drop on how the metaverse can shape your brand.