Metaverse revolution: Transforming consumer experiences, marketing strategies
THE concept of the metaverse is rooted in the development of shared digital realms within immersive virtual worlds. Before its emergence, concepts like virtual reality (VR), social networking, and augmented reality (AR) laid the groundwork for envisioning interconnected digital spaces, shaping the landscape of virtual experiences and online communities.
As digital technology rapidly progresses, the metaverse, intricately tied to Industry Revolution 4.0, has experienced a profound transformation surpassing its conventional roots in shared digital realms. This evolution potentially signifies the onset of the Industry Revolution 5.0 era, characterised by an enhanced integration of smart technologies, the Internet of Things (IoT), and artificial intelligence (AI), further propelled by the influence and advancements of the metaverse.
This new iteration of the metaverse promises users an immersive experience, allowing them to inhabit three-dimensional virtual realms through personalised avatars. Experts anticipate that this evolution would bring transformative changes across various domains including social media, e-commerce, professional life, education, communication, digital video games, culture, and the arts, as well as sports.
Simultaneously, the surge in metaverse-based impulse purchases is driven by various compelling factors, including the fascination with novelty and exploration, the allure of exclusivity, the impact of social connections, the yearning for customisation and personalisation, and the emotional engagement arising from virtual experiences.
Marketers can strategically leverage these elements by introducing concepts such as limited availability, special features and unique virtual experiences to evoke impulsive buying behaviour.
A notable instance showcasing the rise of NonFungible Tokens (NFTs) within the metaverse is a compelling example of this phenomenon. The fervour surrounding NFTs has fuelled a notable increase in impulsive purchases by users.
The intrinsic scarcity and exclusivity linked with NFTs significantly amplify the impulsive nature of purchasing decisions within the metaverse. This trend underscores the pivotal role of strategic marketing elements in fostering a vibrant and engaging consumer environment in virtual spaces.
Consequently, marketers and brand strategists are diligently delving into the understanding of consumer behaviour and formulating effective marketing strategies within such digital realm, namely the metaverse.
These strategies encompass evaluating the perceived value of digital items, safeguarding brand reputations, orchestrating cohesive marketing campaigns and attracting emerging consumer demographics – particularly the Gen-Z cohort, poised to become the primary target audience, not just in virtual spaces but also spill over effect to the physical world, in the form of actual product purchases in the physical world.
Despite being in its early stages, the metaverse presents boundless opportunities for marketers and brands to thrive, particularly by enhancing two critical touchpoints of the customer journey: their intrinsic motivation, and extrinsic motivation.
This is when consumers succumb to the allure of impulse buying, such behaviour often imparts a sense of motivation associated with a perceived shift in lifestyle – transcending from a sedentary existence to one that is more vibrant and exhilarating.
This inclination is particularly pronounced in the virtual realm (i.e. metaverse), where concerns and constraints (e.g. societal norms and cultural expectations) that individuals might face in the tangible world are lifted away.
In this digital domain, consumers find a liberating space, untethered from realworld limitations, enabling them to explore a more carefree and exciting dimension of their lives.
Intrinsic motivation
Leveraging intrinsic motivation (i.e. perceived trust and perceived risk associated with making purchases in the metaverse) is instrumental in elucidating the phenomenon of impulse buying within the metaverse landscape.
Any form of purchases made in the metaverse (e.g. the NFT and in-game currency, or upgrades for online gaming), particularly notable in impulsive transactions, can significantly enhance consumers’ joy and fulfilment, particularly when the acquisitions align with their enduring desires.
This type of motivation not only alleviates stress and boredom, but also fosters an intensified sense of excitement and novelty related to the purchases – thereby augmenting overall satisfaction.
The spontaneity inherent in these experiences often evokes a sense of gratification akin to that derived from traditional in-person mall purchases, seamlessly translatable into the expansive domain of the metaverse.
Extrinsic motivation
In addition to intrinsic motivation, external factors linked to extrinsic motivation, such as accessibility and a seamless experience in the metaverse, play a pivotal role in shaping consumers’ impulse buying behaviour.
Engaged in metaverse transactions, consumers are often driven by a thirst for fresh discoveries, spanning new interests, places, hobbies or styles.
This motivation is deeply rooted in their real-life experiences or aspirations, often influenced by shared experiences with peers or family members that were once constrained. This curiosity propels consumers to effortlessly delve into learning and uncover novel experiences within the metaverse.
Here, they are unencumbered by societal limitations that might otherwise hinder exploration.
These constraints encompass societal norms, cultural expectations, and other factors that traditionally limit one’s capacity to pursue specific interests or activities.
The metaverse acts as a virtual realm, mirroring reallife experiences, and offering individuals the freedom to liberate themselves from these constraints.
In this expansive digital space, they can freely explore new dimensions of life, unbound by societal restrictions, and immerse themselves in a world of endless possibilities.