6 Things Beauty Brands and Retailers Can Do To Prepare for the Metaverse

As the future of the metaverse continues to transform how we interact with brands and retailers, key players in the beauty industry have integrated new technologies into their brand experience to offer virtual online stores, AI-powered personalization, and NFTs.

By elevating loyalty programs with NFTs, launching virtual stores for consumers, and segmenting consumers to develop deeper relationships that deliver on their expectations, the metaverse is here to stay. For you, as a brand or retailer, it’s important to take advantage of the momentum today as online experiences become the new normal. 

Here are some ways beauty businesses can utilize the benefits of the early Metaverse and shape it to their advantage today:

1) Revitalize Brand Perceptions to Reach New Audiences

With younger audiences flocking to the metaverse, this is a way to attract the attention of a new segment  and change the perception of your brand among this much-valued cohort. For instance, Roblox, a user-created gaming platform, has over 42.1 million daily active users—and 87 percent of them are Gen Z. By becoming a part of this early Metaverse, brands can attract younger audiences' attention and change the perception of their brand among this much-valued cohort. 

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2) Make Your Brand Experience Count and Last 

The audiences in the metaverse-based platforms are the most engaged, loyal, and passionate. But they expect meaningful experiences from every brand they interact with. If you do so consistently and authentically, you can generate a fruitful and long-lasting relationship. Thus, brands need to immerse themselves in each platform, learning its culture and language.

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3) Build Trust and Loyalty with NFTs

Most current loyalty programs are out of balance and outdated: more benefits go to the company than to the customer. NFTs, on the other hand, put customers at the center of the experience, transforming users into ambassadors.

As of right now, digitalization makes it easier for brands and retailers to reformulate loyalty programs by utilizing digital access keys (NFTs) to benefit from increased customer loyalty, lower marketing costs, customer acquisition, and increased LTV, says Sampo Parkkinen, CEO and Founder of Revieve. 

If a brand or retailer is considering implementing NFTs into a loyalty program or overall member engagement strategy, there are several unique benefits to consider:

• Cost-effective: NFTs in beauty can enhance your typical loyalty programs at a low cost. Collections can be algorithmically programmed to reduce expenses while leveraging brand value. In return, users can access discounts, early launches, access to community, exclusive events, etc.

• Truly Personalized: NFTs will become digital "keys" of access. Metaverse combined with NFTs will create a new concept of loyalty, taking into account concerns and preferences of the new generations with relevant and personalized loyalty programs by giving discounts on products that users use or want or that meet a need.

• Unique: NFTs are also inherently special and limited. They create a feeling of exclusivity and uniqueness because of their rarity, especially when there are additional benefits granted by token ownership.

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4) Increase Accessibility with Greater Responsibility

The Metaverse can help make technology better and more widely available by facilitating development tools for the people. Bringing increased access around the world will be a priority. For instance, most people lack the opportunity or means to buy luxury goods. But those who can't fill their closet with luxury clothes could outfit their Metaverse avatar in them, thus, indulging themselves at a lower cost.

Moreover, with NFTs, brands can highlight their involvement in various causes. L'Oreal Paris USA recently created NFTs to make a case for gender equity in cryptocurrency. At the same time, Givenchy partnered with graphic artist Chito to sell off several NFTs, the sale of which benefited a Dutch organization committed to ocean cleanup. 

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5) Deliver the Next Gen of Shopping Experience thru Virtual Stores 

Today's technologies like AI, AR, and VR, combined in one platform, make avatar interaction, personalized virtual AI/AR consultations across all verticals, digital token use, and much more possible in today's Metaverse. Nars Cosmetics recently teamed up with Zepeto to allow users to cultivate three-dimensional, animated versions of themselves to communicate with other users. 

Other beauty brands, like Clinique, give their members the chance to receive the digital collectibles by asking them to share their unique stories across social media platforms. Clinique has also introduced its version of the digital shopping universe with its new Skin School x Clinique Laboratories Metaverse. As they described it: a "holistic experience, the computer-generated space hosts videos from Clinique experts, virtual skin classes and takes visitors behind the scenes of Clinique's beauty products." 

Balenciaga, for example, has found success in the popular game Fortnite, utilizing the vast virtual world to drop new looks. 

Advancements and innovations presented above incentivize consumers to interact with brands and cement the Metaverse's great opportunity to expand fashion and beauty brands.

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6) Build a Trusted Partner Ecosystem for the "Now" and Metaverse

With its unlimited possibilities and highly versatile ecosystem, the Metaverse seems like a perfect fit for the beauty industry. In beauty, whether you're a brand or a customer, the Metaverse has the opportunity to provide personalized beauty experiences at all levels.

Customers are shopping across touchpoints and expect brands to provide one seamless experience spanning the in-store, online, and all possible "now" and metaverse applications. This means brands have to be prepared to respond to consumer needs by establishing trusted relationships with leading technology, design, and research partners, to help them deliver upon consumers' expectations, says Sampo Parkkinen, CEO and Co-Founder of Revieve.

This is why, at Revieve, we are continuously strengthening our digital ecosystem, powered by advanced technology, data and analytics and profound knowledge and experience from technology, innovation, e-commerce, and Metaverse experts, to help brands build the next generation of consumer engagement.

For example, we've started to work on projects such as integrating our AI Skincare Advisor experience into a virtual 3D store or combining it with customizable digital advisors to establish new ways of how brands can leverage the Metaverse space to their advantage today.