For many brands the Metaverse still remains a bit of a question mark. But despite this, it is critical that businesses start to get their heads around what it might mean for them.
And key to this, is thinking about the value of zero-party data (defined as data that is intentionally and proactively shared by the consumer with a brand), for it is zero party data that will ultimately be the differentiator of success in the Metaverse
Why?
Because physical reality coming together with the digital world by way of virtual reality, augmented reality and the internet will redefine the customer experience and the value exchange will be more important than ever before. Recent research from GDMA reveals that consumers are much more comfortable with, and even see a value in, sharing data than they ever have been previously. This is especially true if they see a clear benefit of doing so. More than half of the people surveyed (53 per cent), across 16 countries, agree that the exchange of personal information is essential for the smooth running of modern society. In good news for the marketers, the vast majority of global consumers (82 per cent) are prepared to engage with the data economy in 2022.
Trust in an organisation remains the most important factor in consumers’ willingness to share personal information with a company. Over a third (38 per cent) of consumers rank ‘trust in an organisation’ in the top three factors that make them happy to share data with an organisation.
Another interesting trend observed since the report was last carried out in 2018, is the rise of ‘Data Unconcerned’; a cohort of consumers that display little or no concern about their data privacy. Some 31% of the population now fall into this category – up from 26 per cent four years ago. There has also been a decline of ‘Data Fundamentalists’, people who are unwilling to share personal information. The number of people in this category has fallen from 23 per cent in 2018 to 21 per cent today. The largest group (47 per cent) are ‘Data Pragmatists’, who are happy to exchange data with businesses so long as there is a clear benefit for doing so.
Whilst, this study did not ask questions about the Metaverse, its findings are very significant for brands looking to capitalise on this emerging marketplace. One of the key benefits of zero-party data is that by its nature it more trustworthy than third-party data. This is because customers share it willingly and know that it’s being used by the brand. Consequently, they’re more likely to trust the brand with their personal information. Another benefit of zero-party data is that it’s more accurate. Because they are giving it willingly there are unlikely to provide false information and there is also less opportunity for errors or inaccuracies. And the most important element to zero-party data is that it is more engaging – it enables true personalisation. And that is what the Metaverse will be all about. Providing a personalised and engaging experience.
Consequently, organisation should be looking to implement a zero party data strategy now; even if they have no short term plans for the Metaverse. With increasingly privacy controls being put-on third-party data, such as Apple Privacy and greater GDPR scrutiny as a result of the new ICO, establishing relationships with customers who are happy to share their data makes commercial sense, not just now but for what is to come…
