Why do companies come to Second Life?
With all those companies opening up in Second Life one might wonder what they are looking for. Here is my attempt at trying to understand the motives.
Why it does not sound logical…
- Second life (SL) does not come anywhere near (yet) in terms of market reach, with its 1.3 million current registered users, and maybe 600.000 actual users (over 60 day period). Ok, if you are a global brand, these numbers could mean something, but if your are not, do not bother just yet…
- The type of people that make up the SL population may represent only a tiny sub-segment of the market you are trying to reach…
...but what if this thing starts to grow?
But on the other hand…
- Second Life offers companies a venue to engage “the cultural tastemakers”, the relatively small but technologically savvy early adopters, that influence others (the next adopters).
- Companies recognise SL gives consumers an opportunity to engage with a brand. Just like with a corporate blog, but then with all kinds of other possibilities: 3d, chat, video, presentations, meetings.
- To build their brand name, preferably as an extension of Real Life campaigns.
- To test products: for Starwood Hotels, opening aloft in Second Life is a way to test-market the hotel’s design and rapidly prototype the evolving concept. For instance, staffers will observe how people move through the space, what areas and types of furniture they gravitate towards, and what they ignore.
- Or simply sell merchandise: like Nike is doing with shoes.
- To extend the company’s Real Life services: forms of integration, like IBM is aiming at.
- To recruit new employees: SL is a good place if your are looking for the tech-savvy!
- To tap consumers for ideas, like Nissan (and Starwood Hotels).
- You may not want to miss the “next jump forward” (like with the Internet in the 90’s?)
- Participating makes your company look like it is on top of things and new developments.
- Trying to use the media attention around SL to get media attention for the company (you will need a good story though)
- Just plainly seeking out what the hell this SL is all about (learning by doing / experimenting). I am sure a lot of companies are actually in SL incognito!
- Finally, in terms of marketing budgets this is all peanuts: for UDS 25.000 you have a very nice place in SL, with a lot of functionality!
Any Risks or hidden costs?
- In order to make the most of your company’s presence, you do need to know a lot of SL culture and do’s and don’ts in order not to risk ending up on the list of failed experiments. I guess many SL users are quite well connected to the blogosphere as well!
- SL might be not be a real free lunch, if one takes into account that “potential customers” in SL may need some attention. Unlike with corporate websites, SL residents are in there for the interaction. Company Islands with no company representatives might not offer a good experience. So the cost of doing business in SL might be higher than the construction costs.
Related: all my Second Life articles
Technorati tag(s): Second Life
Add to del.icio.us 
| 
posted Nov 8, 10:02 am on Nov 08, 2006 |
category: Second Life
Short, essential, well written, after one year doing marketing in SL and seeing the present hype I cannot avoid to agree fully with you!
— Ombrone Mar 23, 11:12 am #