How can Web3 sustainably transform customer loyalty?
Web3 is still in the early stages of development and there are still open questions. Nevertheless, current trends indicate that Web3 will play an important role in the future. The development of Web3 technologies already promises many opportunities to rethink the concepts of loyalty.
READING TIPS: Would you like to learn more about WEB3 technologies and the metaverse? Then we already have our blog article “Welcome to the Metaverse” here: LINK
In addition to these visions of the future, very few customers sometimes have crypto knowledge or special devices that provide access to Web3 mechanics and technologies. So how can businesses take targeted action today to take the first steps toward Web3 without losing customers?
We use the flywheel to show how individual activities can build on top of each other over time to create momentum that drives long-term customer relationships and sustainable business growth.
TO WIN: Keeping existing customers and at the same time winning new ones is no less difficult for Web3. It is important to strike a balance between innovative, unique Web3 offerings and low barriers to entry:
- Create attention: Catching the attention of potential customers requires attention-grabbing marketing strategies. The first step towards Web3 and the Metaverse could be the use of limited virtual tokens, digital goods or tokens that are issued for free or in exchange (such as reposts on social media or links) to selected customers or influencers. In any case, there should be additional benefits behind the virtual bonuses. How this can be achieved is given below interaction phase our flywheel.
- Convince with simplicity: cryptocurrency. Blockchain. token NFTs. The list of new Web3 buzzwords is long. In order for customers to engage with your new loyalty program, the main requirement remains that it is simple, understandable and accessible. In order to avoid barriers to entry, selected Web3 mechanisms can be gradually integrated into existing applications (e.g. paying in cash instead of cryptocurrency). In this way, customers can (unknowingly) become familiar with the technology and the application can be permanently switched to Web3.
COMMUNICATE: To retain customers in the long term, you need to convince them with a playful design, an exceptional experience and a portfolio of value-added benefits:
- “The content is the Kingdom; Creators are kings”: Content or content is already a key element in our use of Web2. The decentralized nature of Web3 enables new dimensions of participation that allow customers to become co-creators of products, services, and experiences (such as personalization of digital fashion). This allows customers to develop deeper emotional connections with products, brands and companies.
- From Members to Owners: Loyalty programs are often based on the “Earn & Burn” principle, that is, bonuses are collected or won by solving challenges in a playful way (game). In contrast, NFTs and smart contract technology offer new mechanics to turn loyalty programs into monetary marketplaces where limited NFTs or virtual goods can be traded. As owners of NFTs, clients can trade related products or rewards with each other. This allows them to unlock more bonuses, reach new status levels or earn money. This mechanic helps build an engaged community.
CONNECT: Many businesses face challenges when it comes to inspiring customers in today’s flood of information and offers. New uniqueness or surprise mechanics can create key moments of excitement:
- Get inspired with unique virtual rewards: To increase the appeal of your loyalty program, participants can be given limited virtual tokens (eg NFT Airdrop) – you never know what’s in them. It creates tension and excitement. In addition, special privileges and access to exclusive events for NFT holders could encourage becoming part of a loyalty program.
Whether owner, dealer or co-designer, with Web3, future customers can be much more than “just” members. …