Imagine the following scenario:
The customer loyalty program at the company you work for is not achieving the desired impact on customer retention. You're aware that the next phase of customer loyalty lives on the Web3, so your company is looking for ways to launch an NFT project. Innovative customer experiences, increased customer centricity and thus an increase in customer loyalty are the set goals. Your company confronts its customers with the innovation. However, even before and during the distribution of NFTs, a part of the customers struggles with the installation of the right wallet, the purchase and transfer of cryptocurrencies and the subsequent purchase process of NFTs. Another part complains about losing the tokens they already owned due to a click on an external link in the Discord channel, which allegedly allowed early access to the purchase. A hacking attack that could not be directly stopped by the company. While a third group is upset about the high transaction fees, the question at this point is: How can companies pick up their customers without technical hurdles, with maximum usability and of course without the risk of fraud, in order to offer a smooth Web3 experience?
Content:
- Too many hurdles affect the experience
- How complexity stays in the background
- Custodian Wallets as a user-friendly solution
- How Berryfy provides a Web2-friendly Web3 solution
Too many hurdles affect the experience
One challenge for companies entering the Web3 world is the onboarding of the often still very reserved consumer group around the topics of NFT, Web3 and blockchain. Installing a suitable crypto wallet, the associated purchase of cryptocurrencies and setting up the network often either robs many users of their enthusiasm at the outset or they already see these steps as too big hurdles. Often, the necessary expertise and capacity is also lacking internally within the company to enable a smooth user experience through proper education, alternatives or other support. The overarching goal of customer loyalty and increasing customer lifetime value could quickly move in the opposite direction as a result.
Discord as a social media channel for project presentation and interaction between brand and customer has never been considered by us as an optimal solution to make Web3 technologies accessible in a Web2-friendly way. And rightly so. For example, users are constantly falling victim to hacking attacks, which leads not only to the brand's chagrin, but more importantly, to terrible user experiences and touchpoints on the part of consumers. The constant multiple checks to see if links can be clicked without hesitation and the artificially high engagement in channels create confusion, overwhelm and ultimately a high bounce rate.
Naturally, brands want to take advantage of the tremendous opportunities for improving the customer experience, implementing new touchpoints, and customer interaction that Web3 technologies offer them. However, the implementation and user-friendliness hurdles described above play a crucial role, which is why the coming paragraphs will explain in more detail the extent to which use can be simplified so much in order to pick up customer groups that have not yet had any touchpoints with NFTs.
How complexity stays in the background
One way to offer customers a familiar user landscape but with an innovative experience are so-called custodian wallets. To understand the following context, it is helpful to explain the principle of a wallet.
Crypto assets such as tokens or currencies are stored in a wallet but reside on the blockchain. What is actually stored in wallets are so-called keys - public and private. The public key is the address where the assets can be sent and where the wallet can be publicly viewed. In this context, the wallet address can be understood as a unique and one-time identification number. The private key, also called seed phrase, can be understood like a superior password, because whoever has the private key to the associated wallet can control the wallet. The loss of the seed phrase makes the wallet irrevocably unusable. Here, everyone must decide for themselves how to properly secure their assets and protect them from unforeseen events.
So what are custodian wallets? The wallet owner transfers responsibility for security to the wallet provider. This means that the provider has the private key and thus control over the assets associated with the wallet. Now, you might think that custodian wallets are certainly always the worse choice, because why would you put control of your own assets in the hands of others? On the one hand, this methodology is already well proven by today's banking system. People entrust their assets to a bank to use convenient payment methods and outsource the high responsibility of IT security and certifications. But apart from that, the following examples show why custodian wallets are better suited than non-custodian wallets in terms of user-friendliness in certain contexts.
Custodian Wallets as a user-friendly solution
First of all, compared to conventional wallets, it is not necessary to go through a complex installation and integration process to use Custodian Wallets. The wallet is usually created very easily and automatically after registering with the corresponding provider, without the user having to face any technical hurdles. Thus, the user only needs an Internet connection to interact with the assets stored in the wallet. The risk of hackers capturing the private keys and thus the user losing his NFTs is very low here, since the latter does not actually store them in the wallet. It would take a major attack on the provider's infrastructure to steal the contents of the custodian wallets.
For private individuals, it may make more sense to use a non-custodian wallet if very valuable tokens or high amounts of cryptocurrencies are stored in the wallet in order to keep full control out of the hands of third parties. On the other hand, for companies that distribute tokens to their customers, e.g. as access keys or in the form of loyalty points on the blockchain, a custodian wallet actually makes much more sense. For one thing, it does not burden the company's customer with the technical and regulatory requirements, and for another, the company retains overriding control over usage. In addition, companies would certainly have to deal with complaints from unwary users who fell for scams. So, although the overriding control is in the hands of the provider, the tokens are stored in the user's wallet, making them the owner and thus allowing them to trade, exchange, sell, or use the tokens at will with the brand and partners.
How Berryfy provides a Web2-friendly Web3 solution
In the course of various customer discussions, we came across the same needs again and again: Brands want to use NFTs as a customer loyalty tool without confronting the customer with the hurdles described above. In this context, we founded Berryfy, the tool with which brands can offer their customers innovative experiences and thus sustainably increase customer loyalty.
How does it work?
Companies create the necessary instruments on Berryfy, such as NFTs, fungible tokens and the token gate, simply with a few clicks and in a short time. A token gate is an exclusive area on a website, for example, which can only be accessed by users with the appropriate NFT.
The user, in turn, logs in as usual with his Web2 credentials, i.e. his e-mail address, and assigns a password. In the background, Berryfy creates the Custodian Wallet, which serves as a repository for the tokens issued by the companies. Neither the brand nor the customer is confronted with technical hurdles or complicated installation processes. Both parties register and use Berryfy with familiar Web2 processes, while in the background Web3 technologies grant access, make the loyalty points tradable and enable interoperability.
If you and your company also want to revolutionize customer loyalty with Web3 technologies, but see familiar operation and uncomplicated processes as a prerequisite, we look forward to your contact request. We are sure that in this conversation we will be able to explore possibilities of cooperation and offer unique experiences to both the company and the customer.
