In an era where data is the new gold, understanding your customer has never been more crucial. While Web2 solutions have provided a foundation for customer relationship management (CRM), they often fall short in delivering a comprehensive understanding of consumer behavior. Enter Web3 and Non-Fungible Tokens (NFTs), technologies that are not just disrupting industries but also redefining how brands interact with their customers.
Why Global Brands Are Migrating to Web3
You might wonder why household brands like Nike, Mcdonald’s, and Starbucks are diving headfirst into the Web3 space. While it’s tempting to attribute this to the rising consumer interest in digital products, the real catalyst is far more strategic: data. Web3 offers an unparalleled richness of data that traditional Web2 solutions simply can’t match.
NFTs: A New Form of CRM
Interacting with consumers in the Web3 ecosystem introduces a groundbreaking form of CRM. Imagine accessing a connected wallet’s complete Web3 activity—interactions with other brands, peer-to-peer engagements, spending levels, and more. This is not just data; it’s a multidimensional view of your consumer.
The Power of Free NFTs
The latest trend among global brands is to sell NFTs and distribute them for free. This strategy focuses on building a large tokenized community rather than immediate revenue. The logic is simple: the more NFTs you distribute, the more wallets you connect, and the bigger your addressable audience becomes. This low-cost, low-risk approach allows you to develop an engaged and incentivized community without the pressure of delivering high value from day one.
Take Nike, for instance. They’ve minted free .SWOOSH ID tokens to engage users in their emerging Web3 ecosystem. Starbucks, on the other hand, has minted free ‘earnable’ Stamps for users who complete brand engagement ‘journeys’. McDonald’s Singapore provided a free mint of NFTs featuring their beloved character Grimace, giving holders perks and discounts for food and drink items. These strategies aim to onboard existing users to Web3 while simultaneously enriching their consumer datasets.
Building Lifetime Value
The focus is shifting from quick revenue generation to long-term value creation. Brands are now concentrating on building their Web3 datasets, seeding their Web3 communities, and enhancing consumer value over time. This increases the lifetime value of each customer and fosters a sense of community and brand evangelism.
The advent of NFTs and Web3 technologies is not just a fleeting trend; it’s the next evolution in consumer engagement and CRM. By leveraging these technologies, brands can gain a more nuanced understanding of their customers, thereby creating more targeted and effective marketing strategies. As we move forward, the question is not whether to adopt these groundbreaking technologies but how quickly you can integrate them to stay ahead of the curve.