Web3, metaverse, NFTs, blockchains, wallets… these are just a few of the keywords that promise to fundamentally change the way brands interact with customers. So why, when we look for evidence of this revolution, all we see are brands building experiences in virtual worlds like Decentraland or seeing digital photos of monkeys in hats sold for millions? Is this what Web3 and the metaverse are supposed to deliver?
Most people hear the term metaverse and immediately think of a lot of people using avatars to interact in a virtual space. But virtual spaces are not the metaverse. Instead, they are just one of the three main building blocks of the metaverse.
Portfolios and why they should matter to brands
Some of you may already use a cryptocurrency wallet like MetaMask. These portfolios are normally used to store your public and private keys for criptomoedas transactions.
However, your wallet will soon also be the primary mechanism for providing proof of ownership for digital and physical goods. More importantly, they will also be used to prove that you are you, replacing current forms of proof of identity.
That’s transformational. Today you prove that you are mostly through third parties. Online is provided by companies like Google, Facebook and Apple. In exchange for this “service”, we abdicate of most, if not all of our online privacy. And since these companies control the ability to check people online, brands are forced to spend millions to access a customer with whom used to interact directly. Born a relationship channel with totally new customer and enriched companies like Facebook and Google. But all that is about to change.
When the portfolio of an individual is the main method to prove the identity of a person, the marks do not depend on third parties to do so on your behalf. As a result, they can once again begin to build direct relationships with customers and verified. If brands can also create compelling reasons for customers to interact with them, they will no longer depend primarily on third parties as the TikTok to attract customers. This brings us to the role of NFTs and virtual spaces.
Smart NFTs: The Future of Loyalty and Rewards
What is an NFT? Simply put, an NFT is a unique digital identifier that cannot be replicated. This is also revolutionary. Because, in the past, it was virtually impossible to enforce ownership of digital objects.
NFTs idiots – creating and selling digital objects – are probably as you learned of NFTs. People buy these digital objects in the hope that the price will go up and then sell them for profit. This is pure speculation and not very interesting for marketers.
Smart NFTs are different. How? First, they are programmable and can be instructed to do things. They may contain rewards that can be unlocked when collected. They can be used to access special events. They can even change and communicate with brands as they interact. In the morning they may offer a 20% discount on breakfast; after noon, it’s for lunch.
An example of smart NFTs being used in this way is the recent discovery “Virtual NFL Football” by a Fortune 500 insurance brand. The company has distributed virtual soccer balls across the country. People then used the AR function of their phones to find and collect the soccer balls that were redeemable for signed goods, tickets to games, matches, etc. They expected 500,000 to be collected in 4 days, instead 1.3 million were.
Now that’s fun and predictably became viral – but much more interesting it is what the brand has earned it. Each of the fans who signed up dropped a portfolio that allowed them to collect their digital soccer balls. And as the portfolio was based on a NFT, if you remember, is a unique digital identifier that can not be replicated, it is clearly connected to that client. As a result, the company now has a “database” checked hundreds of thousands of people connected by a direct channel (Portfolio) they can use to encourage and reward your customers at any time (via NFTs sent to this portfolio ). Who needs Facebook now?
Virtual spaces like the Metaverse
So now you have a direct channel to your customer and is offering rewards, as you extend this engagement? Almost every brand today is doing this by renting out virtual land on third-party properties like Decentraland, Roblox, and others. However, now that we understand that the true transformational power of the metaverse is through the wallet, is this approach short-sighted? Why would any brand replace a third-party brand with one that would disintermediate you from interacting directly with your customers? That’s the difference between a truly Web3 approach and simply replace an outdated model Web2 other. Web3 is a decentralized but direct interaction – decentralized but direct customer data, decentralized but direct loyalty and rewards.
Key findings about brands and the Metaverse
The success in the metaverse will not come to host an event in Roblox. Success will come when you integrate all three major components of the Metaverse: 1) a client portfolio 2) fidelity and intelligent NFT rewards and 3) host your (s) own (s) room (s) virtual (is) always active ( s). Combined, these pillars provide the foundation for the next generation of consumer engagement. The revolution is happening now and the brands that do not understand the mechanics are at risk of falling behind.
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