Why Not Every Company Should Jump on the Web3 Bandwagon
Not every company should adopt a Web3 strategy. For example, companies like the Wurth Group, a global supplier of screws, may not benefit significantly from NFT collections. The decision to enter the Web3 space requires careful consideration and adjustment of priorities.
Building a Community Instead of Transactional Relationships
In Web2, interactions between consumers and brands are transactional. However, in Web3, brands have the opportunity to co-create with their community and build a loyal following. Token-gating access to specific experiences allows companies to involve their community in product development and give them a voice in shaping the brand’s offerings.
Redefining Success in Web3
In Web3, success is not solely measured by immediate numbers such as sales and retention rates. Companies must shift their focus to community engagement, contributions, and outcomes of co-creation. This requires letting go of short-term ROI expectations and embracing a more holistic approach to user acquisition and retention.
Expanding Value Creation Opportunities
Web3 offers new avenues for value creation beyond traditional transactions. Brands can generate profits through NFT collections and leverage their existing audience. The margins can be high once the initial costs are covered, and royalties earned from NFTs can be an added bonus.
The Importance of Transparency and Open-Source Ethos
Web3 emphasizes transparency, with open-source code visible to all. Brands that fail to understand this ethos may face backlash from the community. An example is Porsche’s NFT collection launch, which was criticized for its lack of transparency. In contrast, projects like Shinsei Galverse showcase the positive outcome when creative forces from both Web2 and Web3 collaborate.
Hot Take: Embracing the Web3 Mindset for Success
Venturing into Web3 requires a shift in mindset and a willingness to embrace community-driven approaches. Companies that prioritize their community’s input, engagement, and experience are more likely to succeed in this new and exciting technology landscape. However, those who enter the space solely for financial gain without understanding its principles may harm their reputation. Overall, Web3 remains an attractive space for enterprises willing to experiment and adapt to the changing dynamics of customer engagement.
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