Metaverse: The Potential of Virtual Customer Interaction

The Metaverse is the new hype topic in the digital industry. Many companies are working on strategies to follow the early adopters and become part of the new virtual worlds. According to recent surveys of executives at digital companies worldwide, one third of them plan to invest in the metaverse in the next two years to create new opportunities for marketing their products and interacting with customers.

And that's right on trend: According to our latest figures, by 2026 we can expect a quarter of the world's population to spend at least an hour a day in the Metaverse. People will work, shop, learn, and spend leisure time there. The world's major technology companies are therefore preparing intensively for the Metaverse, but Germany in particular does not yet seem to be optimally positioned for the new digital ecosystem.

What the Metaverse will ultimately look like is still up in the air-especially since it will not be limited to just one, but will coexist with several. What is certain, however, is that what users are experiencing today is merely a pit stop on the way to a new digital transformation. Twenty years from now, today's early adopters will smile and wistfully recall the early days of the metaverse, just as today's Internet users do.

At the moment, the Metaverse is almost exclusively populated by gamers and people interested in technology. Often it is young people who have technical understanding and are early adopters. This is mainly because the technical hurdles to enter the Metaverse are high. Those who want to enter virtual worlds need virtual reality (VR) glasses, but many models are difficult and expensive to purchase. Current VR goggles are also uncomfortable, heavy, and cannot be worn for long periods of time. As a result, companies must convince potential customers of their products and services within a limited window of use.

But the rapid pace of technological development should not be underestimated: Researchers have recently developed a much flatter and more compact VR display. As a result, today's bulky VR goggles are expected to become lighter and smaller over time. Virtual worlds are not yet as inclusive as they would like to be, but this is expected to change in the future as research progresses and technologies are optimized. In the medium term, the metaverse will no longer be interesting and accessible only to young target groups, but will reach the whole of society. It is therefore crucial for companies to start thinking about strategies for the metaverse now.

To set a strategic course, companies need to know as much as possible about what the metaverse will look like. But the metaverse is not a single innovation. Rather, it is a combination of several elements, all of which have the potential to disrupt existing business models, processes, and experiences. It's a combination of augmented reality, head-mounted displays, cloud computing, the Internet of Things, 5G, and artificial intelligence, all coming together in the metaverse. And this interplay makes it hard to imagine how it will evolve. What is certain is that it will be an immersive, all-encompassing experience. And if virtual space fascinates people half as much as the Internet has, the Metaverse is likely to bring similar social disruption.

There is no doubt that people will buy products in the metaverse - even if they cannot be touched in reality, but only exist virtually. The demand for virtual goods can already be seen in the success of non-fungible tokens (NFTs) and virtual fashion. The gaming industry is also generating billions of dollars in sales of in-game items.

Brands are already creating virtual customer experiences with virtual events, product demonstrations and shopping experiences. With individual, personalized offers, retailers are creating a link between online shopping and the experiences customers have when shopping in brick-and-mortar stores. In the metaverse, companies can not only present their products in detail, but also provide personal, emotional experiences through virtual tests, try-ons, and presentations that were previously only possible through direct customer contact. This is a critical step in the customer journey that accelerates the path to purchase and leads to the ongoing development of customer relationships.

Other industries and service providers can also benefit from Metaverse. Travel companies, for example, can present hotels, attractions, and transportation options in 3D models. This not only makes vacation planning easier, but also significantly improves the buying experience. There would be no need to spend time researching whether a particular place is worth visiting. Similarly, the real estate industry can offer virtual tours of homes, apartments, and offices, eliminating the need for personal visits. For businesses to take advantage of the opportunities the metaverse offers now and in the future, they must adapt their customer service to the new realities. And the more companies interact with customers in the metaverse, the more important it will be to provide virtual support when problems arise. This is not easy to do because expectations are rising: 43 percent of consumers have higher customer service expectations than last year.

In the metaverse, conversational customer support - a dialog-based, personalized, cross-channel customer relationship - will be especially important. As soon as a user gives a certain signal, support staff or other help elements could appear as pop-ups in the virtual environment and provide direct support. It is critical that service capabilities and channels are integrated directly into the virtual environment so that users do not have to leave the platform and interrupt their experience to resolve their issue. In addition, customer support should be tailored to the individual user: According to recent figures, 80 percent of European customers are willing to spend more with a company that offers personalized service.

One thing is certain: Wherever people interact with brands and service providers, there will be a need for support. Customers in the metaverse will want the same simple and seamless support experiences they expect in real life. Customer service in the metaverse will need to be easily accessible, fast, targeted, and unobtrusive. If users like what they experience, companies will have the opportunity to attract new customers and retain them for the long term.