Exploring the Potential for Brand Growth in Web3
How to use blockchain technology to connect directly with your audience and build more valuable customer relationships
Web3 has been hailed as the next generation of the internet. Thanks to its foundations in blockchain technology, it promises to be more decentralized, secure, and transparent than the web2 internet that has prevailed for nearly two decades. Armed with these tools, brands that are bold enough to dive into the world of web3 stand to reinvent the way they connect with customers. Here’s how companies can achieve brand growth in web3 and position themselves for future success as these digital technologies continue to evolve.
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Growth Benefits for Brands Considering Web3
It’s still early days for web3, but the underlying technologies and their practical applications are evolving at a breakneck pace as interest in web3 innovation grows. Investment in web3 reached $23 billion in 2022 alone. One of the primary goals of web3 is leveling the playing field; that is to say giving users, creators, builders, and investors an equal stake in the network while also incentivizing everyone involved to collaborate toward sustainable growth.
For brands, web3 represents an opportunity to build deeper and more meaningful customer relationships. Web3 technologies and tools eliminate middlemen and erase layers of abstraction so that brands can connect directly with customers while also turning audiences into thriving, engaged communities. As web3 continues to develop, it will become an increasingly important platform for brands looking to retain customers, acquire new ones, and achieve real brand growth. Let’s look at some of the ways brands can use web3 to position themselves for future success.
3 Ways to Achieve Brand Growth in Web3
Web3 is poised to revolutionize the way brands interact with their customers, changing the fundamental way companies do business in digital spaces. These are the 3 most promising ways to achieve brand growth in web3:
#1: Create new products and services
The blockchain creates opportunities for brands to launch new streams of income through products and services that are more secure, transparent, and decentralized than what’s on offer in a web2 world. Even if web2 isn’t going anywhere anytime soon, new offerings launched on web3 can easily be complementary to core business verticals. NFTs that represent physical items, for example, give customers entirely new ways to engage with artwork, music, or video content. Brands can also design their own decentralized applications (also known as Dapps) that encourage audiences to interact with each other and deepen customers’ relationships with the brand itself, all without the need for middlemen like third-party apps, data storage providers, or centralized authorities.
#2: Reward customers for their loyalty
Brands can also use blockchain technology to reward customers for their ongoing engagement and build lasting loyalty. Web3 takes traditional loyalty programs a step further by leveraging tokenization; for example, brands can issue tokens for every purchase customers make or each interaction they have with the company. Customers can then use those tokens to redeem prizes, like discounts on future purchases, free products or merchandise, or priority access to exclusive events. Using blockchain technology to build loyalty also gives audiences skin in the game and helps build community; brands can encourage customers to use their loyalty program tokens to vote on new products or even company decisions.
#3: Create immersive and engaging experiences
Blockchain technology can also be used to create immersive and engaging customer experiences. The Metaverse is a critical element here, and it is considered a pillar of web3; brands that build in this virtual world are able to offer interactive experiences that simply wouldn’t be possible in physical space. Customers can engage more deeply with brands in these virtual experiences, whether they’re dedicated to shopping, entertainment, or community building. Augmented reality (AR) is another web3 technology that is more accessible for brands and customers alike; AR experiences allow customers to use their existing smartphones or mobile devices to interact with a brand and its products in the real world.
Brands can use these immersive experiences to offer personalized and highly targeted marketing campaigns that leverage zero-party data. In this way, web3 also gives brands access to new audiences that would be extremely costly to acquire through traditional advertising or in physical spaces. Brands that dive into the web3 waters won’t just unlock competitive advantage today, they’ll be positioning themselves for success in the long-term future. To maximize your results, it helps to have an experienced partner that can help you navigate the web3 ecosystem. Since 2020, Dibbs has been helping brands use the blockchain to tokenize assets, build customer loyalty, and foster engaged audiences through immersive experiences. Schedule a demo today to learn how you can achieve brand growth in web3.