What your business needs to know before moving to the Metaverse and Web3

For merchants, retailers, and marketers, meeting the right person with the right message at the right moment has always been the key to success. While still in its infancy, the metaverse is the next big place for people, messages, and moments to converge, and brands and consumers alike are excited to see what opportunities it unlocks.
 
So, what are the barriers preventing the acceptance and adoption of the metaverse and Web3 by the general public and the business community?
 
Web3 and the metaverse promise to be the next iteration of the internet, ripe with opportunities for creators, consumers and brands. For acceptance and adoption, brands must address the challenges of the  metaverse and Web3, including crypto wallets, UX/UI, standardization, a lack of compelling apps, brand safety, DAOs and those VR/AR goggles.

Transiting to the Metaverse and Web3

Brands Slowly Adopting a Hybrid DAO Model

Decentralized Autonomous Organizations (DAOs) are a huge part of Web3 and often considered by many as the business model of Web3. A DAO is a group or entity represented by rules that are controlled by its members and not influenced or controlled by a central government, all governance is done as part of a group or collective. Everyone that owns the DAO’s crypto token is a member of the DAO, each with voting rights. When the DAO makes money, DAO members also make money. 
 
Service DAOs use on-chain credentials to funnel and allocate resources from one DAO to another through the creation of decentralized working groups, allowing members to work in the Web3 world. 
 
Rather than turn over total control of the organization to a DAO, many brands are considering Service DAOs, that enables them to turn over specific areas of the organization, such as content production, sales, marketing, customer service, and so forth. In exchange, members of the Service DAOs are included in the profits when brands prosper, similar to standard DAOs.
 
A Hybrid DAO model allows the brand to retain control of time-sensitive business decisions while the DAOs vote on decisions regarding other aspects of the business. In this way, brands are able to contribute to DAO members as they continue to build community, brand loyalty and ROI.
 

NFT, Metaverse, Web3: Is it all worth the effort?

 
In a survey conducted by Forrester in August 2021, 23% of U.S. online consumers said they would like to spend more time exploring the metaverse, and 19% said brands should build more branded experiences in the metaverse. Companies are now grappling to make sense of how to leverage this new territory, knowing that first movers will be at an advantage. Brands like Louis Vuitton, Marriott, and Chase that have dipped their toes into the metaverse are already making waves. While mainstream B2C brands may be capturing headlines today, there’s also an opportunity for B2B brands.
 
For example, the metaverse is centered around the concept of community and interaction. B2B brands, once bound by the parameters of expensive business travel and trade shows, can now connect with business decision-makers virtually via the metaverse. This minimizes expenses while maximizing access to product experts on a more consistent basis, allowing marketers to be more opportunistic when it comes to campaign timing.
 
The metaverse also provides a pipeline to the rising younger cohort of business decision-makers who grew up gaming and prefer to explore and convert in digital channels. These individuals will be more open to a virtual brand experience in the context of their daily jobs, driving not just engagement but valuable earned media through word of mouth.
 
There are operational efficiencies to consider, as well. As employers emerge from the pandemic and reevaluate their operational costs, the metaverse provides an interesting solution to team collaboration, particularly in a hybrid work environment. Establishing a virtual footprint in the metaverse can cut expensive overhead costs related to office space and supplies, while simultaneously enabling employees from all over the world to interact in real time.
 
To be a first mover, however, a brand needs to be comfortable with current barriers. Now is the time for familiarization and experimentation in order to achieve a high degree of comfort and confidence with this exciting new space.

Crypto Addresses and Passphrases Are Complex

A typical crypto wallet address is a very lengthy and complex series of seemingly random alphanumeric characters. The average person cannot remember such an address, so they keep it somewhere in digital form where it’s easy to copy and paste. This inefficient process is just one of the things that hinders rapid adoption. In addition, in order to access the crypto wallet and transfer assets from one wallet to another you need a passphrase which can be anywhere from nine to twenty five words in length, with each word being random rather than a readable phrase or sentence. Unlike traditional passwords, they are cumbersome and not easy to remember. 

The User Experience and UI Metaphors Remain a Challenge

While we have come along way since Web1 and have adopted Web2 constructs, Web3 will introduce many new concepts and new interfaces and there will be a learning curve.  
These major changes encompass many areas including product design, security, onboarding and education for both B2C and B2B. The journey to get to a decentralized state is on a continuum, and we need to get people started and keep them interested and engaged in that journey to full decentralization.
 
0 %
Of US consumers aged 18-35 demand a personalized shopping experience
0 %
Returns reduction is estimated just by using AR on a website
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Of US customers won’t recommend a business with a poorly designed website on mobile

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