5 Metrics You Need to Know for Success in the Metaverse

Recent findings by Accenture suggest that by the end of 2025, metaverse experiences and commerce could account for 4.2% of company revenues, translating to $1 trillion. There is also a strong consumer interest in the metaverse, with 55% of consumers expressing a desire to become active users and an overwhelming 90% aiming to do so within the following year.

Companies and brands are exploring the 3D internet's applications and use cases, interested in leveraging its ability to offer engaging, enriched experiences beyond the confines of traditional digital interaction. However, in the metaverse, the creation of experiences is only the beginning. Understanding how to quantify and measure success through appropriate metrics is crucial for companies and brands to offer value, attract users, grow their virtual presence, and earn a return on investment. This blog analyses the top 5 metrics of success in the metaverse, offering an approach to achieving return on investment (ROI) in these virtual experiences.

1. User Engagement

Within the context of the metaverse, user engagement refers to the extent and manner in which users interact with and participate in virtual environments. User engagement is the depth of user involvement, the frequency of visits, and the quality of interactions within these digital spaces. Engagement is crucial for the vitality and growth of virtual experiences, as it reflects the value users derive from their experiences.

According to EY, 25% of consumers are expected to spend at least one hour daily in the metaverse by 2026. Capturing the attention of these consumers and ensuring your brand has a higher share of a user’s time spent in the virtual space will be critical. 

Here are the key metrics used for measuring user engagement in the metaverse:

• Active users: This metric tracks the number of unique users who engage with the metaverse over a specific period, such as daily active users (DAU) or monthly active users (MAU). It provides a snapshot of the platform's popularity and user retention.

  
  

• Session duration: The time users spend within the 3D internet or a specific virtual experience during each visit. Longer sessions can indicate higher engagement, suggesting that users find the virtual environment’s content and design compelling and engaging.

  
  

• User interactions: This includes the variety and frequency of actions users take within the metaverse, such as communicating with other users, participating in events or games, trading virtual goods, and exploring different environments. 

A platform known for its user-generated and heavily engaged games and experiences is Roblox. The platform enables users to create, share, and participate in content created by users. Companies and individuals on the platform can design clothes, construct buildings, run businesses, and host concerts in the metaverse. It excels in user engagement by providing diverse interactive experiences, social features that encourage collaboration and communication, and tools for creators to build immersive games. Roblox has effectively developed a model that attracts and retains a vast and engaged user base, boasting 50 million active daily users and millions of developers building experience, per a Harvard Business Review publication in April 2022. 

Dwell heatmap in the Landvault Platform

2. Retention Rate

The retention rate is a critical metric in assessing the "stickiness" of metaverse experiences, indicating how compelling and engaging a virtual environment is for users over time. A high retention rate signifies that users visit the metaverse platform and repeatedly return, suggesting strong user engagement and satisfaction. This metric is essential for understanding a 3D internet platform or experience's long-term viability and success, as it reflects the ability to maintain an active and engaged user base.

Some strategies to improve retention include regular content updates, engaging the community, and personalizing experiences.

Real-life examples of high-retention metaverse platforms:

• Minecraft: Minecraft is a prime example of a game that has evolved into a metaverse-like platform, boasting high retention rates. The platform keeps users coming back through high-quality content, multiplayer modes for collaboration, and gamified experiences. According to a publication by Andreessen Horowitz, Minecraft has the top 'stickiness' rate (DAU/MAU) in the gaming industry, reaching an impressive 42%. 

  
  

• Rec Room: Rec Room is a virtual reality social club where users can play games, build and share their spaces, and socialize. Data published by Sacra shows 37 million people have played Rec Room, engaging with 12 million player-created rooms on the platform. According to statistics from an Andreessen Horowitz report, the platform is incredibly engaging, with daily active users logging in almost four times per day. Its high retention rate can be attributed to the variety of user-generated games and activities, a welcoming community, and the platform's cross-platform accessibility, allowing users to connect regardless of the hardware they own.

3. Monetization

The metaverse, with its expansive virtual economy, offers monetization opportunities, each with unique strategies tailored to enhance user engagement while generating revenue.

Here are some key monetization models in the metaverse:

• Virtual goods sales: This model thrives on selling digital assets, such as avatars, clothing, accessories, and in-game assets, pivotal in environments valuing personalization, identity, and status. Including digital assets like NFTs (non-fungible tokens) adds a layer of uniqueness and ownership, making these virtual goods highly desirable. 

  
  

• Advertising: Integrating branded content and advertisements into virtual spaces can be lucrative. Advertisers can promote a brand through in-game assets, virtual billboards, or branded experiences. For instance, one Landvault customer saw users spending 29 minutes engaging with the company’s metaverse experience, compared to a second or two when they saw an advertisement, exemplifying the potential of advertising in the space.

  
  

• Subscriptions: Offering premium access to experiences through tokens like a premium pass non-fungible token (NFT) can provide users exclusive content, experiences, new game levels, or virtual assets. This model works well when the base experience is compelling enough to encourage users to pay for additional value and when content creators are looking to build loyalty.

  
  

• Branded experiences: The metaverse has been considered a massive disruptor ever since the rise of the experience economy. These branded experiences can have monetization elements like play-to-earn games and virtual assets. Brands can also tokenize their 3D experience into multiple tokens through platforms like Matera and earn revenue by selling a share of these tokens to their user base.

Successful monetization strategies in the metaverse:

1. Fortnite's in-game purchases: Epic Games' Fortnite has revolutionized the monetization of virtual goods through its in-game store and Battle Pass system. Fortnite has strategically positioned itself within the virtual goods marketplace, offering an extensive selection of items, including character skins, emotes, and the Battle Pass, available for purchase via V-Bucks, the game's proprietary currency. The Battle Pass allows holders to earn rewards throughout a season and is a great way to monetize a loyal community.

   
   

2. Virtual real estate sales in the Sandbox: The Sandbox, a blockchain-based game emphasizing user-generated content, enables players to purchase and own virtual land. In 2021, it was responsible for 60% of all virtual land sales, amounting to $500 million, as per VentureBeat. By December 2022, each of The Sandbox's 166,464 land parcels had sold for an average price of $12,700. This model generates initial sales revenue and fosters a creator economy within the platform as users develop their land with unique experiences and attractions. The scarcity of land and the potential for monetization through sales, leasing, or event rentals make virtual real estate a lucrative investment.

4. Social interaction

Social interaction is a pivotal metric of success in the 3D internet, reflecting its capacity to foster community, belonging, and user engagement. This dimension of the metaverse transcends mere digital presence, enabling users to forge meaningful connections, collaborate, work, and share experiences in ways that mirror real-world interactions.

Critical metrics for social interaction in the metaverse:

• Social connections: The number and quality of connections users form within the metaverse are a fundamental indicator of its social fabric. Metrics such as friend lists, social groups, and interaction frequency offer insights into how effectively the platform supports relationship building.

  
  

• User-generated content creation: The ability for users to create and share their own content is crucial for a dynamic and engaging metaverse. Metrics include the volume of user-created assets, usage of content creation tools, and the diversity of content being produced. These metrics reflect not only the platform's usability and accessibility but also the users' investment in the community.

  
  

• Community building: Engagement levels within the community, measured through participation in events, forums, and collaborative projects, indicate the strength and vibrancy of the 3D internet or a specific project’s social ecosystem. High engagement suggests a committed user base and a rich, interactive environment.

Examples of metaverse experiences prioritizing social interaction:

• Mastercard’s Pride Plaza in Decentraland: As a part of Mastercard’s ‘Your True Self is Priceless’ campaign, which builds on the company’s commitment to the LGBTQIA+ community, the financial institution worked with Landvault to launch the Mastercard Plaza on Decentraland. The 3D space offered community members and allies opportunities to connect in an environment where users were encouraged to be their truest selves. The activation included a community center, a dance floor, and an area for live events.

  
  

• Forever 21 Shop City on Roblox: Forever 21's foray into the Roblox metaverse with Forever 21 Shop City is a trailblazing initiative that merges fashion, gaming, and community building in a virtual world. By allowing users to own and manage their customizable stores to become the "top shop," Forever 21 not only gamified the retail experience but also empowered players to express their individuality by creating their unique store. This venture is a vibrant example of how brands can bridge the digital and physical realms, offering a new dimension of interaction and community building in the fast-evolving digital landscape.

5. Sessions

A crucial measure of this growth and the success of metaverse platforms is the number of user sessions, which serves as a vital indicator of user engagement and tracks the platform's effectiveness in attracting and retaining a user base. 

Frequent user sessions signal strong engagement, suggesting the platform offers valuable, enjoyable experiences that motivate users to return. High engagement levels are essential for fostering a vibrant community and sustaining the platform's growth.

Each session represents an opportunity for users to interact with the content, participate in events, and engage with branded experiences. More sessions translate to higher reach and impressions, amplifying the visibility of the metaverse platform and any associated brands or products featured within it.

A metaverse with high user session counts offers a lucrative opportunity for brands to showcase their products or services to a broader audience. The immersive nature of the 3D internet allows for innovative advertising that can enhance brand perception and influence. As users engage more frequently with these branded experiences, the potential for brand loyalty and advocacy increases.

Examples of high user count metaverse experiences:

• Decentraland's Metaverse Fashion Week: Decentraland's Metaverse Fashion Week stands out as a successful metaverse experience with 300,000 users visiting the experience over three days. Landvault was one of the companies that helped launch the event to showcase the merging of fashion and virtual reality through digital entertainment venues, branded shops, and red-carpet events. The activation offered brands and designers a platform to reach global audiences in an immersive digital environment.

  
  

• Lil Nas X concert experience on Roblox: This event, held in November 2020, was a milestone in Roblox's history, drawing over 33 million viewers across its showings. It was a groundbreaking moment for the platform, demonstrating the vast potential for high user count experiences in the 3D internet and setting a precedent for future virtual events in Roblox and beyond.

Number of sessions graph in the Landvault Platform