As critical as new customer acquisition is to any growing business, maintaining strong customer loyalty and long-term customer retention has always been a cornerstone of any successful brand.
As it stands today, the traditional Web2 marketing approach employed by most companies relies heavily on targeted digital advertising campaigns, utilizing large centralized platforms like Google, Facebook, and YouTube. Although more effective than blind advertising campaigns of the previous era, these targeted ads rely heavily on user data collected by large centralized advertising platforms, very often of questionable quality and relevance. In addition, aggressive data privacy regulations being adopted worldwide, growing consumer ad fatigue, and greater consumer awareness are increasingly rendering these strategies less and less effective.
The emerging Web3 decentralized framework presents a paradigm shift away from the traditional marketing models, relying instead on personalized user experience, transparency, trust, and deeper, more meaningful user/community engagement. These innovative marketing strategies open up new avenues and create exciting new opportunities for brands to build stronger, long-lasting customer relationships. From a technical standpoint, the Web3 approach relies heavily on blockchain technology and its immediate applications, specifically NFTs, DeFi and metaverse.
Within the context of marketing strategy, blockchain can be used to ensure transparency, verify authenticity, enable peer-to-peer (P2P) transactions and securely store customer data. NFTs can be used to create exclusive digital products and experiences for customers, helping build a stronger emotional connection to the brand. DeFi can provide new ways to reward customers through tokenized loyalty programs, staking, or flexible payment options. The metaverse also provides a plethora of new ways for companies to engage customers and promote brand loyalty by establishing a virtual presence there to offer immersive experiences and build user communities.
Let’s take a closer look at how specific applications of these technologies can help transform brand marketing strategies within the Web3 framework.
Leveraging the blockchain to build trust and ensure transparency
Building consumer trust has always been a major challenge for companies, and it is especially critical in today’s digital landscape. Consumers are now more sensitive than ever to how brands collect, use, and monetize their data, as well as how secure their private information is. Blockchain technology addresses this issue by providing transparency and giving users more control over their personal information. Rather than relying on invasive tracking, Web3 allows brands to offer consumers the choice to opt into marketing campaigns. Blockchain-based decentralized identity (DID) solutions allow users to manage their personal information more securely. Using the blockchain to handle customer data also facilitates compliance with any existing and new privacy regulations by providing an immutable audit trail.
Blockchain-authenticated products are one use case where, by leveraging the blockchain, brands can verify the origin, quality, and sustainability of their products, offering customers trustworthy and verifiable information in real time.
Another example of Web3 transparency is decentralized ad platforms that directly connect with consumers without intermediaries, bypassing traditional ad platforms. Decentralized ad platforms reward users with tokens for viewing ads, ensuring that consumers are compensated for their attention and that brands target genuine audiences with relevant ads.
By respecting consumer privacy, giving users control over their data, and being transparent brands can build stronger, more trusting relationships with their customers.
by Igor Pelipenko, OrdinalsGoods
About Ordinals Goods
OrdinalsGoods is a decentralized Web3 e-commerce platform that offers an alternative to traditional platforms like Amazon or Shopify, specifically tailored for SMEs selling niche consumer goods and services.
The platform provides vendors with lower costs, greater flexibility, and the advantage of upfront payments for subscription-based products. Buyers benefit from discounts, price protection, and added value through blockchain technology. Our mission is to create innovative, customized solutions that meet the unique needs of digital nomads, remote workers, and the businesses that serve them.
