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3 Ways Web3.0 Experiences Can Boost Brand Loyalty

Blog post - Web3.0

Can Web3.0 Improve Consumer Loyalty to Your Brand?

We talk a lot here on the ByondXR blog about how brands creating immersive experiences that leverage Web3.0 technologies often see increases in lead generation, consumer engagement, and even online sales. But can Web3.0 also increase consumers’ loyalty to your brand?

Yes. And in this post, we’ll give you some examples. But before we jump into that discussion, let’s define our terms because there’s a lot of confusion surrounding Web3.0.

 

What do we mean by Web3.0?

Web3.0 is a catchall term that encompasses many new and still-evolving technologies – including blockchain, crypto wallets, non-fungible tokens (NFTs), and artificial intelligence. Together, these (and other) technologies are creating a more decentralized approach to the web’s architecture – Web3.0 – where individual users will have more privacy, freedom of movement, and personalized experiences in the digital world.

It’s also worth noting that your competitors are increasingly turning to these new technologies to create more engaging experiences for consumers. A recent MarketsandMarkets report estimates that the global Web3.0 market will grow more than 1,000% by the end of this decade, from $400 million USD in 2023 to $5.5 billion by 2030. If you want your brand to stay competitive in the coming years, you’ll need to adopt Web3.0 technologies to keep your consumers engaged.

With that in mind, here are a few tactical approaches you can take to leverage Web3.0 to boost brand loyalty.

  

3 Ways Web3.0 Can Boost Your Brand Loyalty 

 

1. Create more flexible loyalty programs

A key example of Web3.0’s emphasis on decentralization is how it can leverage tools like blockchain and NFTs to create more valuable, flexible loyalty programs for customers.

With most standard loyalty programs, businesses offer points to customers based on their purchases, which those customers can redeem only for narrowly focused rewards. Purchase 10 meals from a restaurant, for example, and you can claim your next meal for free. The standard internet architecture – Web2 – offers a digital version of this inflexible arrangement: Buy from our company, and you can earn points toward discounts on specific items in our digital store – and only in our digital store.

This lack of flexibility might explain why today’s young consumers are 40% less likely to join a loyalty program than older consumers, who have grown up with such programs and have become accustomed to their limited value.

But with Web3.0’s use of blockchain and unique tokens, you can give your customers much more flexibility. You can create loyalty programs that let them collect ownable digital assets – such as your own branded NFTs – to redeem for value across your brand’s entire ecosystem. In other words, you can let consumers easily redeem the digital assets they collect via your company’s loyalty program toward any products, exclusive events, or other unique experiences you offer, either online or offline.

In fact, by accepting these unique digital assets as payment, you can even allow consumers to use NFTs they’ve earned from other brands’ loyalty programs to buy your company’s products – without even needing to coordinate with those other businesses.

 

 2. Add gamification to your immersive experiences online

Web3.0’s decentralization of currencies and payment formats means that you can make it easier than ever for consumers to pay for any of your brand’s products or experiences regardless of the type of payment they choose – including digital assets they’ve earned from your loyalty program. One high-profile example is the Starbucks Odyssey.

With this Web3.0-powered extension of the existing Starbucks Rewards program, members can log into their rewards accounts online and embark on gamified journeys, which include trivia and interactive games that are exclusive to Odyssey program participants.

For our discussion about boosting brand loyalty, there are two takeaways here.

First, Starbucks is leveraging Web3.0 to add gamification to its immersive experiences. That will likely prove valuable, as research from McKinsey & Company finds that 70% of Gen Zers prefer spending time gaming over watching videos. In other words, visitors to the Starbucks Odyssey virtual environment will likely spend more time interacting with the Starbucks brand because many of the environment’s “journeys” are in the format of engaging games.

Second, Odyssey members are rewarded for their engagement in the virtual environment with Web3.0-enabled currencies that include unique, ownable Starbucks “stamps” (NFTs) – which consumers can redeem in many ways, from free drinks to exclusive trips and other events.

 

 3. Deliver more personalized, meaningful, immersive experiences

Finally, another building block of the emerging Web3.0 architecture is the application of artificial intelligence to create more customized experiences for visitors to brands’ digital environments.

A common consumer complaint about traditional (Web2) loyalty programs – and brands’ marketing campaigns in general – has been irrelevant rewards or promotions.

And keep in mind, with Web3.0’s prioritization of allowing users to move throughout the digital world privately and anonymously, brands will find it increasingly challenging to use tracking tools to target consumers with relevant promotions or rewards. This means you’ll want to leverage AI to learn in real time about each consumer’s key traits and interests as they enter your virtual environments based on their behaviors.

Fortunately, by deploying the right AI-powered tools (such as virtual consultants that can offer your visitors real-time guidance and recommendations), you can leverage Web3.0 to give your customers a more personalized and meaningful experience in your virtual environment – and, ultimately, boost their loyalty to your brand.

 

Let us show you how.