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Enhancing CRM Contacts and Increasing Brand Loyalty through the Metaverse: H&M Virtual Showroom

In the dynamic and ever-changing fashion landscape, companies are constantly seeking innovative ways to engage and retain their customers. With the rise of the metaverse, a new frontier has opened for brands to experiment with and transform digital interactions. H&M’s pilot project, implemented in partnership with Journee, perfectly exemplifies how the fashion industry can leverage the metaverse to strengthen its CRM contacts and increase consumer loyalty to the brand.

THE SECTOR, PLATFORM AND STRATEGIC GOALS

Operating in the vibrant fashion industry, H&M chose Journee, a Berlin-based virtual experience platform, to launch an ambitious initiative that aimed to reinvent the customer experience and strengthen brand loyalty. Through an innovative virtual event, the goal was to create a positive image of the company by engaging customers in a unique and memorable way.

🏭THE COMPANIES INVOLVED

H&M is a Swedish multinational fast fashion company. Their customer base includes women, men, and children.
Journee is a software company that connects brands to the metaverse, based in Berlin.

🎲 THE PROJECT

Led by H&Mbeyond (H&M’s open retail innovation lab), the brand launched its first virtual showroom as a pilot in Central Europe in April 2022 and everywhere else in July 2022.

The idea was to have a virtual environment where visitors could experience the new collections. Visitors could walk around, talk to other guests, and meet direct contacts present in the virtual space. This provided the opportunity to connect at any time without having to physically go to one of the physical showrooms. In addition, guests could connect with other celebrities, influencers, and stylists.

🔎 RESULTS

According to Journee, the launch of the virtual showroom has led GenZ to:

Strong interest in the virtual H&M brand experience (69%)
Conversion of members to H&M Hello – H&M’s loyalty program (80%)
Positive image of the brand as a whole (85%)

In addition, the virtual experience received awards for their activation:

Red Dot Design Awards / Digital Solutions / Winner
Digital Communication Awards / Innovation / Bronze
Lovie Awards / Best Brand Integration – Brand Strategy / Bronze
Lovie Awards / Fashion and Business Retail / Bronze

CONCLUSIONS AND TAKEAWAYS

In conclusion, H&M’s experiment in the metaverse, carried out with the collaboration of Journee, not only broke new ground for brand-customer interaction in the fashion industry, but also provided valuable lessons on how emerging technologies can be leveraged to strengthen consumer connections. The results demonstrate the effectiveness of such initiatives in attracting the interest of a younger audience, improving brand image, and converting virtual interaction into concrete loyalty.

The takeaways from this pioneering experience offer a clear indication of the path brands can take to remain relevant in a constantly evolving marketplace:

 

Increasing Gen Z interest through Virtual Experiences: The virtual showroom initiative demonstrated a strong appeal to Gen Z, with a significant percentage of interest in the experience. This indicates that virtual environments and digital experiences can be powerful tools in capturing the attention and interest of younger people, who value innovation and digital immersion.
Increased Conversion to H&M’s Loyalty Program: The initiative played a crucial role in converting visitors into H&M Hello members, with a substantial percentage of participants signing up for H&M’s loyalty program. Immersive and interactive virtual experiences can, therefore, effectively encourage customer engagement and loyalty by providing an innovative avenue for brands to connect with their audiences and reward them for their engagement.
Improved Brand Perception and Recognition: The high percentage of participants who reported a positive brand image and the numerous awards received highlight the potential of virtual platforms in significantly improving a brand’s image and market perception. This success underscores the importance of innovative and user-friendly digital strategies in building a strong positive brand identity, especially in an industry as competitive as fashion.

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