Marketing is more complicated than ever before, and technology is evolving at a rapid pace. But still, the best brands understand their customers and how to engage and delight them.
Our report today examines the metaverse, how we already live in it, and our predictions for how immersive experiences will evolve along with other key technological advances.
So, stay with us to learn the most important data, or read the full report here.
Introduction into Metaverse 2023
The hype about the metaverse exploded in 2021, pushed by Facebook’s rebranding as “Meta.” 18 months later, there is still no consensus on when it will arrive, who will build it, or even what it is.
On the one hand, augmented reality (AR) and virtual reality headsets (VR) provide persistent, universal, immersive experiences. And as for the metaverse, it is simply a richer, more immersive version of the internet. A change in both technology and customer behavior is driving a transformation in customer engagement along with the metaverse’s evolution.
For brands, the metaverse presents exciting opportunities to create unique, differentiated, and memorable customer experiences. Customer satisfaction and lifetime value are boosted, as well as topline revenue and costs are reduced. Furthermore, the metaverse will generate new data streams that will help brands create even more relevant and meaningful experiences for their customers.
#Trend 1: Ad networks are Everywhere
It is expected that many businesses will launch their own ad networks in 2023 as the privacy landscape evolves and the foundations of digital advertising shift. Through proprietary ad networks, the savviest service providers are unlocking the value of their first-party customer data.
Retailers aren’t the only ones leveraging first-party data to generate ad revenue. There are already successful ad-funded gaming platforms. With Netflix and Disney+ opening ad-funded tiers later in 2022 and early 2023, streaming services are also getting in on the action. And the food delivery service DoorDash announced last year that it would allow advertisers to serve ads on its platform.
It is more likely that younger consumers will perceive the benefits of retail media networks when shopping online. Thus, brands considering launching ad networks should do so in a way that supports rather than inhibits customer experience (CX).
Source: Beyond the Metaverse: CX Predictions for 2023 report
#Trend 2: Anything-as-a-Service
From food stores to streaming platforms, companies are exploring how products as-a-service can extend their customer relationships beyond the point of purchase.
Cloud computing, which enables the servitization of everything from hardware to software, is driving XaaS growth. Building and maximizing direct-to-consumer relationships, which can generate annual recurring revenue, is also crucial. Over the last decade, XaaS has proliferated into a wide variety of sectors, including content services and subscription food boxes.
For example, we can point out:
- Banking-as-a-Service
- Mobility-as-a-Service
- Commerce-as-a-Service
- Video-as-a-service
- etc.
Source: Beyond the Metaverse: CX Predictions for 2023 report
Even though embedded finance usage remains low, consumers are very positive about it. A consumer survey found that:
- Fewer than a third of consumers have used embedded finance offerings from non-financial companies, such as retailers and e-commerce sites, but adopters are very satisfied.
- 49% of 16-34 year-olds say they are more likely to make a purchase when a brand offers insurance.
- As-a-service models can help brands build deeper relationships with customers and drive loyalty, according to 68% of brands.
Source: Beyond the Metaverse: CX Predictions for 2023 report
#Trend 3: Providing Seamless Services
To deliver best-in-class customer service and support, brands combine automated tools and technologies with human-centered approaches. From auto-generated emails for cart abandoners to personalized product recommendations for undecided shoppers.
However, some critical touchpoints in the customer journey – namely customer service and support – are still primarily handled by humans. The majority of businesses (64%) are already using AI to deliver customer support, but these are likely to be simple chatbots that can only address basic, high-frequency questions.
And customers are increasingly comfortable with digital assistants.
Source: Beyond the Metaverse: CX Predictions for 2023 report
Better customer service isn’t the only benefit of AI. Businesses are already using digital identity verification to provide a more seamless customer experience. As a result of the survey, 65% of businesses agree that it helps them deliver a more seamless user experience than manual identity verification. In the finance sector, 75% of businesses agree that it helps them onboard customers more quickly and delivers more seamless experiences to customers.
Source: Beyond the Metaverse: CX Predictions for 2023 report
#Trend 4: Intuitive Technology
Our communication with businesses and each other has been transformed by the smartphone. And our interaction with products and services, as well as the technologies that enable them, may soon be transformed by intuitive technologies that can interpret and understand our intentions.
Source: Beyond the Metaverse: CX Predictions for 2023 report
Conversational AI is enabling more natural conversations between humans and intelligent devices. Additionally, Google Assistant is beginning to recognize pauses, “umms,” and other interruptions in human speech.
What’s more, facial and voice recognition will become the norm for unlocking everything. It will also feature intuitive controls that help us understand ourselves better and enable more natural conversations and experiences.
Source: Beyond the Metaverse: CX Predictions for 2023 report
Trend 5: Impressive Shopping
Simulation-based technologies such as augmented and virtual reality are used to create immersive and highly personalized shopping experiences. Despite this, nearly half of the consumers haven’t used immersive shopping experiences or are unaware these options exist.
Yet immersive shopping is on the rise, driven by a variety of factors.
Source: Beyond the Metaverse: CX Predictions for 2023 report
The shopping experience and consumer expectations are evolving. Before making a purchase, shoppers want to be inspired, try out products, and ask their friends for advice.
And immersive shopping can help in this, improving the consumer’s experience in three ways:
- Greater confidence in the product
- A fun and social experience
- A more personal encounter
Source: Beyond the Metaverse: CX Predictions for 2023 report
Conclusion
Businesses of all sizes need to invest in tools and technologies to gain a better understanding of their customers and to use that knowledge to create more engaging experiences based on the five CX trends highlighted in this report. After all, customer satisfaction, brand loyalty, and, ultimately, customer lifetime value are all driven by a great customer experience.
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