May 5, 2023
Web3, the latest iteration of the internet, is creating a new way for people, places, and things to connect - transforming the role of brands in the space. Web3 technologies create opportunities for brands to build secure networks, decentralized systems, and new business models to gain a competitive advantage. Brands use these technologies to enhance supply chain management, build decentralized marketplaces, run loyalty programs, monetize content and products, and increase personalization. If you want to establish your Web3 brand, this blog will help break down the steps from building a solid brand identity to nurturing your community online.
Why Web3 matters for brands
Web3 and its underlying blockchain technology could transform how brands operate, making them more user-centric and transparent. Here are some of the primary reasons Web3 matters for brands:
Secure and transparent: Web3 technologies are powered by decentralization, making them safer, more secure, and more transparent than traditional tech. Third-party attackers and hackers find it almost impossible to compromise the network’s security without being tracked. Brands using these technologies can therefore build stronger relations of trust with consumers.
Decentralized systems: Web3 technologies are not controlled by a single centralized authority but by multiple users. Blockchain powers Web3’s decentralized network, where a distributed ledger verifies and traces items and transactions to ensure authenticity. This model promotes peer-to-peer connections, greater resilience, inclusivity, and censorship resistance.
Data ownership and control: User data has been historically managed by tech giants, but with the advent of Web3, individuals are regaining control over their data. Any data transferred through Web3 networks is encrypted, and users can decide what information they wish to share with third parties like advertisers and companies. Users also have an opportunity to earn rewards in some form of currency if they choose to share specific data.
New business models: Web3 unlocks new revenue streams with innovative business models, from micropayments to tokenization. Non-fungible tokens (NFTs) can create a recurring income as they are bought and sold over time, particularly for assets like art and music. Token-based loyalty programs are another way of leveraging Web3 by using NFTs as tokens to access a brand’s products or services.
Competitive advantage: Over $120 billion worth of investments has been poured into building metaverse Web3 technology in the first six months of 2022, as reported by McKinsey & Company. Though some companies are on the fence about implementing Web3 strategies, the potential it holds is significant. Brands can integrate these technologies into their functions to gain a competitive advantage over less agile peers.
How do brands use Web3?
Improved supply chains: Brands use Web3 technologies like blockchain to run efficient supply chain networks. Web3’s decentralized network is highly secure for data sharing, data management, and aggregation of supply chain elements. The network also provides transparency, security, traceability, and trust while executing shipments and deliveries, improving customer experience.
Decentralized marketplaces: Brands can build decentralized marketplaces through Web3 technologies, bringing together buyers and sellers to interact directly, eliminating intermediaries. By leveraging blockchain-based smart contracts, customers can execute secure transactions for products and services within these brand marketplaces.
Loyalty programs: Brands entering the Web3 space nurture customers and strengthen community bonds by deploying token-focused loyalty programs. These tokens, like NFTs, denote ownership, provide access, and encourage participation in the ecosystem. For instance, Starbucks launched an NFT-focused loyalty program called ‘Starbucks Odyssey’ to extend its current rewards program and encourage customers to unlock benefits and perks.
Content and product monetization: Web3 allows brands to make money innovatively through NFTs, micropayments, social tokens, and DAO memberships. NFTs can define ownership of virtual or physical products like art, pictures, music, and digital personas that can be sold to earn revenue or royalties. Brands can also generate income from micropayments by providing pay-per-use or pay-per-minute services to monetize the content they create.
Personalized experiences: With better-targeting tools driven by artificial intelligence, Web3 technologies allow brands to create personalized content and customer experiences. This dynamic and unique content will improve customer interactions and create more value for audiences.
How to build a Web3 brand
Build a brand identity
A Web3 brand begins with a clear and strong brand identity that sets the foundation for your values, goals, and personality and helps build trust with your community. Aligning your identity with Web3’s values of transparency, decentralization, and community-driven decision-making, will ensure your presence is genuine and well-received. Dapper Labs embraced the Web3 ethos when it launched CryptoKitties, a decentralized platform for users to breed, buy, and sell unique digital cats, creating a strong community and trustless interactions.
Leverage social media platforms
While building a Web3 brand, you must build and continually engage with a strong community of followers. Using social media channels like Discord, Twitter, and Telegram is an excellent way for a Web3 brand to create an online presence and reach wider audiences. A coherent social media strategy with visual and text-based content will amplify brand recognition and build trust with your audience.
Create valuable content
Create valuable and engaging content across your digital channels that can educate and entertain audiences. The content you create can be a medium to communicate the benefits of Web3 and your brand’s role in the space. Creating high-quality content will help increase your brand’s popularity and appeal among audiences.
Participate in Web3 events
Joining Web3 events and conferences will be crucial to gaining industry insights on the latest developments and trends. Networking and building relationships at these events with other brands and thought leaders in the Web3 space would also be crucial in boosting your brand.
Encourage participation and engagement
Web3 brands must identify and collaborate with key communities to build long-term relationships. They must go beyond the traditional ‘buyer-seller relationship’ by focusing on activations that provide perks and rewards. Brands can host token-gated community events and conduct airdrops for NFT collectibles. Using decentralized governance models, members will be involved in decision-making.
Web3 is far from just a fad, with entrepreneurs, investors, and consumers anticipating its ability to provide higher levels of interconnectivity and improved experiences. It's the perfect time for brands to capitalize on the opportunity and use Web3 to build new ways to engage with customers, build trustworthy systems and create innovative business models.
A big benefit for brands is that Web3 technologies can provide them with an infrastructure that is secure, transparent, decentralized, and allows for data ownership. Web3 opens up several use cases for brands, including supply chain management, decentralized marketplaces, loyalty programs, and monetization schemes. Web3 brands that gain success will create a brand identity, build a social media community, generate high-quality content, participate in Web3 events, and engage with community members.
Are you looking to build your Web3 brand? We can help you build, scale, and monetize your brand in the metaverse. Get in touch with us!
May 5, 2023
LandVault is the largest metaverse builder with over 100 million square feet of virtual real estate, more than 120 full-time creators, and nearly 300 completed projects. We’ve been helping brands build and grow in gaming environments since 2017 and the metaverse since 2021.
LandVault’s platform-agnostic proprietary technology and creative powerhouse builds and delivers tailored, data-driven, and optimized business solutions and insights. We help clients launch, optimize, and monetize metaverse experiences.
LandVault’s mission is to accelerate the metaverse economy through technology with a vision of a fairer wealth distribution across the web.