What: The Proteus Effect is the set of consequences of the friction existing between a person using an avatar and his or her real life.

Why it is important: Even though the metaverse still seems far away in terms of immediate application for retailers, avatars are already a reality and it is key for retailers to understand the potential consequences of offering to interact with these representations of their customers.

The article discusses the Proteus Effect, which is the phenomenon where an individual's behavior in a virtual world changes in accordance with the visual characteristics and traits of their avatar:

-    Avatar modelling can act as a virtual self-fulfilling prophecy according to research, which can raise questions when it comes to non-conformism and potential anti-social behaviour.

-    Virtual avatar embodiment informs individuals' behaviors in real life, and can even influence it, for instance for video games players after playing their games.

-    Avatars can help break stereotypes and correct unconscious bias.

The author highlights the importance of understanding the relationship between virtual and physical identities as our presence in virtual worlds increases. The Proteus Effect can be harnessed to nudge people towards better behaviour and more research is needed to fully understand its implications. In the meantime, brands intending to create a metaverse experience must understand the Proteus Effect in order to offer something valuable for their audience that will the behaviour, attitude-changes and insights expected by the brand.

Why anyone interested in avatars should understand the Proteus effect