CHANGING CUSTOMER DEMANDS
More than 3 billion people worldwide benefit from this technology every day: the Internet. As we all know, the Internet as we know it today has gone through several stages of development since 1994. From static desktop websites (Web1) to interactive apps (Web2) to decentralization and proof of ownership of digital assets (Web3). In parallel with technological change, the way people do business is logically changing. Accordingly, customer demands on companies and their marketing measures are also changing enormously. While in the past it was primarily a transactional relationship between customers and companies that influenced marketing, today customers expect a profound and authentic relationship with their favorite brands in order to build a long-term bond. But what exactly do companies need to pay attention to in order to align their marketing efforts accordingly? In order to create an authentic marketing strategy on the web3 , we believe there are three fundamental steps to follow. But before that, we would like to briefly show what role marketing plays on the Web3.
The Role of Marketing in Web3
The metaverse and NFTs have already made it clear that the combination of the increasing shift of everyday life to the digital world and the ability to own a unique digital asset can help brands increase engagement, a sense of belonging, exclusivity and loyalty. However, some companies are still burning their fingers on market approach and audience targeting.
A basic idea of authenticity in Web3 is reflected in the newly imagined relationship between users and companies. Thus, Web3 promotes a relational rather than a transactional relationship. This means that Web3 marketing differs from traditional advertising measures primarily in that the values of the company are the focus of communication, instead of sales-promoting measures to sell even more products or services. It is about being honest, genuine and authentic.
Customers must be made to feel like they are part of a project by communicating the values of the brand. Under no circumstances should NFTs be presented as an investment opportunity or asset class. Marketing on the web3 is all about storytelling. The story behind the NFT project must be unique to make the associated experiences more exciting for everyone involved.
An authentic campaign has many advantages: it attracts more potential customers, spreads the brand message faster and cheaper than traditional advertising methods, and builds trust among potential customers, which in turn leads to more sales. Therefore, we recommend following these three steps to develop an authentic Web3 marketing strategy.
Communicate the values of the brand & the purpose of the project
Most people still know very little about what Web3 is or why a company is suddenly entering this still very young field. As with any new technology, a large portion of the population is fundamentally critical of it. Many do not know whether it is worth getting involved in the project or whether it offers them added value.
Thus, it can happen that the euphoria is not awakened in the entire target group or that there is no basic understanding of the Web3 project to be marketed. This can easily lead to companies having to justify themselves to critical tongues if the Web3 project is marketed in the traditional way.
A fundamental step is therefore to gain the trust of the target group by communicating the what and why transparently. Brands must make it clear what they stand for and be able to explain why and how they live these values. The brand story must spill over to the Web3 project and thus to the target group and, in the best case, ensure that the target group wants to participate in and own a part of the brand story.
Brands should also strongly refrain from implementing NFTs as a marketing stunt or for the sake of hype. NFTs and Web3 technologies in general offer extremely diverse applications, so it is essential to define the purpose when launching the project.
Market the added values of the project
The Web3 project is not a company's core offering or winning product. However, NFTs can be an excellent complement to it. And as described earlier, a Web3 project should have a purpose and provide value to the participants or owners of the token that is not accessible without participating in the project. If these very benefits or privileges are communicated transparently, then the target audience knows what to expect. In this way, disappointments due to too high or wrong expectations are avoided.
In addition, it is important to note that marketing hype should not be the goal of marketing. Hype is usually the opposite of authentic marketing. When a company artificially inflates the benefits of a project, it is essentially raising the bar for itself. Instead of making false promises and exaggerating the benefits of the project, it should always be transparent about what the project is and what it does.
Show why it is worthwhile to be involved
After communicating the values of the brand, marketing the purpose and added value of the project, it is now time to show why it is worth participating in the project in the long run. At this point, it is beneficial to visualize a world that awaits the owner after purchasing or receiving the NFT. It is important to show that the NFT offers real added value for the community.
Again, good storytelling stirs up emotions and the will to participate. Creating videos, teasers, images or similar campaigns that show why it is worthwhile to participate in the project help to convey the values and arouse euphoria in the target group.
These brands convince in Web3-Marketing
Nike Dot Swoosh
One of the most impressive brand announcements in Web3 is Nike's Dot Swoosh. This is a special platform where fans can create virtual creations such as virtual sneakers or jerseys and educate themselves in the Web3 space. In addition, there is the possibility to create a virtual collection together with Nike and to participate in the sales.
What Nike has done particularly well in marketing, from our point of view, is that the focus is clearly on the possibilities and added values of the platform. The NFT was never primarily communicated as a collectible or monetary benefit, but rather as exclusive access to the platform and the opportunities it offers.
Moreover, the sign-up process was made completely Web2-friendly, meaning owners did not have to buy cryptocurrencies or install a wallet to receive the NFT, which was incidentally distributed for free. Thus, Nike makes the NFT accessible not only to Web3 natives, but also to the part of the target audience that is not familiar with the technology.
In addition, Nike is fully focused on building a sustainable community. This purpose is reflected in all of the company's marketing activities, which is why trust was created and euphoria generated from the very beginning. The result of the campaign led to user-generated content and word-of-mouth marketing from followers, customers, bloggers and Web3 natives.
Starbucks achieved another highly successful Web3 market entry with its revolutionary loyalty program. In a previous article we described in detail why the Web3 extension "Starbucks Odyssey" was a very smart move from our point of view, and not only from a marketing perspective.
Nonetheless, the brand also managed to appeal to existing members from the Starbucks loyalty program because Odyssey was communicated as an extension rather than a replacement for it. This largely bypassed negative opinions, as members can continue to use the existing app with their existing user data as usual, without having any particular prior knowledge of NFTs or Web3. Odyssey is thus accepted by most as a useful addition.
Moreover, Starbucks also places a high value on Web2-friendly onboarding, so users are not confronted with the complexities of Web3 at any point. The brand therefore does not talk about NFTs, but "Journey Stamps" that can be exchanged, sold or used against unique experiences in the Starbucks ecosystem. Again, no cryptocurrencies or wallets are necessary to participate in Odyssey.
Our Discovery Workshop as a cornerstone for successful Web3 projects
We are minth and support companies to future-proof their business through Web3, NFT, Blockchain and Metaverse strategies. In doing so, we see ourselves as a full-service agency and offer all relevant services and products from a single source. Because through our extensive partner network, we can also support with accompanying topics such as Web3 marketing. Feel free to contact us and arrange an intro call on the website so that we can also talk about the possibilities for your project.