Is Web3 Already Changing Customer Loyalty?
Web3 technology is already being utilised by businesses. Read this article to find out whether it changes customer loyalty.
Customer loyalty, especially for b2b companies, is one of the most important aspects in business. On average, acquiring new customers is five times more expensive than retaining new ones – not to mention the time and effort that goes into marketing new products and services to alternative demographics.
This is why marketing in line with customer retention and b2b loyalty programs exist. With the help of clever marketing and efficient programs, any company can build up their customer base and ensure that they have the incentive and engagement to repeatedly return for new custom – click here to find out more about how this is achieved.
This has been done for a number of years now, but recently there has been a change to the scene. With the gradual phasing out of Web2 and the phasing in of Web3, companies across the world are already beginning to take advantage of new tools to change the way they interact with their customers. Though whether it works is another point entirely.
What Is Web3?
Web3 is the third generation of the web, built on top of decentralised blockchain technology – with no middle-man or organisation keeping it in check. It is available to everyone and can be manipulated in any way a company chooses.
For those who have heard of – or invested in - cryptocurrency, blockchain is the immutable ledger in which trading is carried out, but it also allows for a number of possibilities, such as world-building or NFT creation. This is where businesses are taking advantage.
Engagement Through The Future
The savviest of businesses have predicted the wealth of opportunities that Web3 could bring – not to mention the need to get ahead of the game before it becomes an ordinary presence in everyone's lives – and they have begun to capitalise on it.
They have done this in a multitude of ways, including BaaS (blockchain as a service), NFTs (non-fungible tokens) and VR-led Metaverse space (dApps such as Sandbox allow businesses to attain their own virtual real estate for customers to visit digitally).
How Is This Changing Customer Loyalty?
As well as typical marketing and loyalty programs, this web3 utilisation offers businesses another way to attain customer loyalty, especially in light of how customs will operate in the future. Take the metaverse, for instance.
According to recent studies, as many as 89 million Americans were using VR by the end of 2022, and 38% expressed a desire to utilise the metaverse. By setting up a business in that space, web3-friendly companies are setting themselves apart from others, offering customers new ways to communicate and form a relationship with the client base.
As well as this, a number of companies are already utilising NFT-based loyalty schemes. Starbucks, for instance, has recently unveiled what is known as "Starbucks Odyssey", awarding customers with digital collectables that can be traded or exchanged for premium benefits.
The Way Forward For Business?
Although organisations such as Starbucks, Burger King and Ticketmaster are already making use of web3 technology, that is not to say it is the right thing to do for every business.
Web3 is still a relatively unknown prospect, and blockchain technology is not going to be utilised or understood by every customer. For small businesses – or big ones that are wary of web3, for that matter - spending money on blockchain marketing or strategies might not be the right option in 2023.
As mentioned previously, there are loyalty programs and numerous marketing options that are proven to work, and it's important to stay in the present when it comes to business.
That's not to say, however, that companies delving into web3 are wrong. Web3 is undeniably the future of the internet, and that future could very well offer a whole new way of doing business.