Unlocking the Potential of Web3 & NFTs for Customer Acquisition & Growth
11/10/2022
From the onslaught of COVID 19 to developments in data-breaching technology to multiple firms declaring bankruptcy, it’s safe to say that the last decade has been anything but stable for the business world. As companies across the globe have scrambled to acquire customers and onboard new users for their products and services, business development has not always come easily – and as a result, CEOs and growth specialists are venturing into new frameworks to try and build their customers.
Enter the ever-interesting world of web3 and NFTs. With a plethora of explorational depth, and an air of excitement and intrigue (cue the twitter frenzy) still surrounding these recent developments in technology, more and more businesses – both emerging and existing – are turning to unlock the potential of web3 and NFTs for user acquisition and organizational expansion.
Before we jump into how these technological marvels can help a company grow, let’s take a look at what web3 and NFTs are – layman terms.
Web3 and NFTs – What are they?
What might seem like figments out of the all-enchanting metaverse, web3 and NFTs are very real elements from our technological reality. Known as the global future of the internet, web3 is the next step in the internet that we all love and know today. In this new iteration, web3 presents an internet that is operated by a decentralized team, taking away the traditional divisions between owners, creators, and users of the web. With this read, write, and own version of the internet, web3 promises increased scalability, data security, and privacy, and NFTs are just one of the many segments that hold home in web3.
Non-fungible tokens, NFTs are unique, digital assets that are stored in blockchains, retaining ownership to its creator until sold or traded. While these most commonly take the form of art, they can pretty much be anything stored in a digital medium.
And most businesses and marketing teams are catching onto the trend, realizing quickly the vast benefit that web3 and NFTs can bring to an organization, helping it interact with potential customers and get more people interested in their products. You might be wondering how exactly web3 and NFTs help business models grow and acquire a greater customer base – well, let’s take a look at the role these new technological assets hold in a business setting.
NFTs, Web3 Customer Acquisition, and Business Growth – What’s the Catch?
So, how do NFTs and web3 help companies increase their community and grow in the market? Well, while web3 by its inherent nature is not owned by any conglomerate, it does hold the potential for an organization to explore new opportunities and increase its sales revenue.
Not only does it do this by creating space for companies to venture into new solutions and different types of marketing examples, but it also helps them access new customer types.
Here are some of the many ways that a business can leverage web3 and NFTs to fast track its growth:
1. You can Streamline your Business Processes
It’s no secret that running a business is no easy feat, from the dozens of meetings to the countless contracts, keeping track of all your business operations in a focused and precise manner requires support. With web3, you can get the support you need thanks to smart contracts.
These contracts allow businesses to simplify trade relations between both vendors and suppliers by maintaining a complete record of the necessary transactions all in real time, in one place. And since they can be automated and linked to previously stored information, not only are businesses processes such as repeat orders and bookings more streamlined, but service costs are also reduced.
2. Remove Third Parties
Web3 involves features such as a blockchain, a decentralized app, and a smart contract, all of which means that a business can essentially remove multiple of its third-party relations, helping them spend less money and work through operations faster and more efficiently.
In fact, one of the major operations that web3 will enable companies to perform on their own are those related to money and finance. Businesses can easily make and receive payments – whether that’s from a client paying in dollars or any other currency – without involving third-party financial institutions such as banks. And the direct communication makes performance metrics and service value turn out for the better!
3. Better Sales Transparency
As customers, it’s natural to have doubts about a firm and its operations. After all, organization scams and frauds are terms that we’ve become accustomed to in the 21st century, and so customers want to take every possible step to safeguard themselves from financial loss.
With web3, there is end-to-end transparency in all sales operations, meaning that customers do not have to spend as much time researching about a brand’s credentials and reliability. Once an order has been placed, details related to its supply-chain processes and financial transactions are visible to all via a decentralized ledger.
And since customers feel that they can place greater trust in a company, they’re more likely to become loyal customers, helping firms increase their revenue and experience market success.
4. Businesses can Experience better Cyber Security
For a company to grow, it needs to be secure. And in today’s day and age, cyber security is one of the biggest needs of any modern firm. From risks such as hacking to spyware to malicious cyber attacks, brands are scrambling to solidify their cyber defense walls in a bid to keep themselves safe and lead the industry market.
Since web3 allows complete transactional transparency along with financial decentralization, data breaches become less common, helping safeguard sensitive client information. And since nothing on a blockchain can be altered or deleted by a non-creator or owner, businesses don’t have to worry about data theft. Once a firm can direct less resources towards putting up safety walls, it can focus more on the more pressing job lists that require attention.
5. Accessing Data has Never been Easier
For any firm – whether we’re talking about crypto startups, web3 companies, or those providing other services – one of the most valuable assets that they could possibly attain is data. This data is then used not only for service and product development cycles, but also to create marketing strategies and carve a space for the brand in a competitive environment.
With web3, firms have access to more data than they have ever had before. And since this is available on a decentralized and permanent platform, it’s cheaper and available across multiple channels. Not only can firms convey direct information to their existing and potential customers, but they can also interact with them in real time by sending out surveys, polls and questionnaires.
6. Skyrocketing Customer Relations
When it comes to user acquisition and expansion, client relations are of the utmost importance for any and all organizations. And web3 with its transparent, easily accessible, and accountable modes of operation increases customer trust in the brand, helping them have a smoother, more pleasant experience than before.
As recipients of this good treatment from the firm, customers are likely to develop long-term relationships with the brand, helping the firm grow and expand its user base.
7. You can Sell NFTs
NFTs aren’t just for individuals to sell, in fact, any firm can enter into the crypto space and start selling NFTs related to their products or services. Not only will this open up a whole new community for the firm, giving it a new revenue stream and market to explore, but by doing so the brand can also align itself with the future of technology.
8. Use NFTs for Charity
One of the best features about NFTs is that they can be linked to philanthropical causes. Designed in the way that they are, NFTs can be programmed such that on every purchase, a contribution of the earned amount is donated to a charitable chapter. Not only is this a good deed in itself, but doing so will help improve brand repute in the industry, helping the firm grow to new heights.
In short, it’s safe to say that web3 and NFTs hold a world of benefit for businesses operating in just about any industry. Not only are the perks listed above great for pushing firm expansion and customer base, but since web3 and NFTs are quickly gaining heat and becoming popular, the traction around them also pulls in customers.
And if brands want to go one step further and really engage their audience, then they can look into displaying blockchain based games on their websites or web app, allowing their community to play games either in a team or individual setting!
In fact, firms are now in the unique position of including web3 and NFTs in their go to market strategies, helping them better reach their expected metrics. Let’s explore this!
What is a Go To Market Strategy? And Can One with Web3 and NFTs really push up User Acquisition?
Not to be confused with a target market, a go to market strategy is a concise plan that helps a brand identify and recognize its ideal users, plan out their messaging, and prepare their product for launch day. With marketing teams that focus and align on a go to market strategy, firms are able to ensure that their various departments are focused on tasks that have the same end goal: fulfilling a community need by putting out the right product. Whatever the idea, the goal should be aligned!
And for brands that choose to incorporate web3 and NFTs into their marketing strategy, they can expect to gain users from previously unanticipated sectors. Not only can you reach a larger audience than ever before, send to the point, targeted messages, play into your brand’s imaging, but looking into NFTs will also enable you to pick partners that align with your user base, helping you get more value for money.
While its clear word that NFTs and web3 hold immense space for brands to grow, there is one issue that arises with what is rather uncharted territory; that of safety.
Are Smart Contracts Safe? And is the World of Web3 and NFTs Secure for Users and Brands?
The internet can always be a scary place for users in the community and for brands alike. And when new concepts such as web3 and NFTs are introduced, it’s natural for users in the community to feel wary.
And while this wariness is understandable, both the user and the brand can rest assured because web3 brings with it new levels of cyber security that are beneficial in safeguarding user information and firm operations. Examples of the security linked to web3 include its decentralization and its use of blockchain tokens.
Can Web3 Affect a Brand Negatively?
While web3 and NFTs undoubtedly bring a world of benefits to the brands that choose to work with them, there can be possible downsides for a firm choosing to onboard these features.
One of these is related to the immense carbon credits that are linked to elements on web3, particularly NFTs. As our world plummets into a climate disaster, there is an ever-increasing urge for corporations to be vary of their carbon footprint and to play their part in safeguarding the planet from further destruction.
Twitter, the hotspot of all tech related news, has had many threads on the dangers of NFTs for the environment, and users across twitter have rallied in support of the planet. In times like today when the power of social media – be it Twitter, Facebook, Instagram or the likes – is so immense, aligning your brand with a negative entity is a risky marketing move. After all, Twitter users are fierce!
The Final Verdict
So, what should a brand do? Should it deep dive into the world of web3 and NFTs in a bid to increase its user base and expand its operations? Or should it steer clear from what are potentially some of the biggest entrants in the corporate world?
The answer lies in smart marketing. Steering clear of web3 is not a smart marketing or corporate strategy as the world moves forward with technological advancements. Instead, firms need to operate in moderation, making smart use of these new features and leveraging them to their brand’s advantage.
The world of web3 and NFTs has immense potential for firms to grow their user base and expand their operations, the trick is to focus on department alignment and to put out the right message via your marketing. Once you’ve got the marketing strategy nailed and gathered good knowledge of how to make use of web3 and NFTs – a good place to start would be to look into a white paper – you’ll see your brand grow like never before. If done right, web3 is a token of success.
Who knows, you might just become the new twitter trend!