Should DTC Brands Join the Metaverse?
Because of the competitive nature of customer acquisition, hyper-growth DTC (D2C) brands are always looking for ways to improve word of mouth and awareness. So it’s no surprise that a lot of fast-growing DTC brands of all sizes are asking, “should we join the metaverse?” The answer to should DTC brands join the metaverse naturally depends on several external factors. From an awareness and PR perspective, there are some considerations before DTC brands joining the metaverse.
What Have You Learned From Watching Other Brands?
Brands like Nike, Warner Brothers, Gucci, and Wendy’s are already in the metaverse. Have you watched these brands closely and experienced their ventures? CMOs and founders intrigued by the metaverse and its opportunities should be sure to sit back and watch a bit. What worked, what didn’t? What inspiration can you take from these digital experiences? Notice many of these ventures are co-branded, which is a great way to double the potential audience size – so what partnerships would enhance the digital introduction of your DTC brand? Gamers are already intimately familiar with NFTs and Virtual goods, so what games appeal to your audience? From breakfast cereal to gaming super powers to fashion add-ons there truly are endless ways for DTC brands to join the metaverse.
Have You Tried Virtual Goods Yet?
46% of consumers haven’t bought a virtual good yet because they don’t understand how it works and 35% might try it if it comes from a brand they trust (full report here). Those two considerations are a lot to unpack. But if your customers are curious early adopters, AND they trust your DTC brand, a great way to test the waters is to experiment with virtual goods (NFTs) like music, memes, or even artwork.
If your customers are curious, but midrange adopters, maybe you set the stage and start educating your consumers a bit, adding to that trust bucket so when the day comes for your brand to fully invest, your customers are ready to come on the journey with you. . The key to intriguing your customers to start their virtual good collection is to pair it with another passion or interest. Virtual goods like avatars or virtual event tickets are easy enough to understand to most consumers, even if they aren’t ready to use them or engage with them yet.
There’s a tremendous value in being the trusted brand that takes your customers by the hand to introduce them to the digital landscape that will make social media look like a flash in the pan.
What Will You DO Once You Get to the Metaverse?
With something like the metaverse, the end goal isn’t to BE there, it’s to activate there. Given that for most consumers, the metaverse is just some vague notion they don’t know how to even access, you’ll need to take stock of where this lands on your priority list. If your customers aren’t in the 18-34 age range of typical NFT purchasers, then this is a pretty big consideration.
Now, if your only goal is to be an early mover, and you have the bandwidth, that is the financial and team resources to do so, by all means, go for it, it’s an interesting brand move right now and it may even get you some press. Media coverage over brands with placement in the metaverse won’t garner attention for long – the metaverse will be as common as having a website and social media. And yet, even now, simply being in the metaverse itself doesn’t garner media attention. You’ll want to activate in some interesting, notable way. The options are endless, but keep in mind that your audience is likely to be small, but starting with a metaverse experience is a great way for the brand and its customers to connect in the virtual world.
The “Ready Player One” vision of the metaverse isn’t quite here yet. For one, adoption hasn’t reached a tipping point yet, but it won’t be long. Today’s consumers are now used to moving into new platforms every few years and the metaverse will follow a similar trend of other platforms: younger people will start, but soon their parents will follow, then their parent’s friends. Instagram was the domain of the youthful for a long time, then its users expanded; for TikTok that process was much faster some of the most vibrant TikTok hashtags belong to GenX, and they’re in their 50’s already. The metaverse is coming, tomorrow’s brand will be there.
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