No Match Found
If you’re helping to lead your organization’s customer engagement and loyalty initiatives, you’re likely feeling more importance — and pressure — than ever. Odds are, the organization is probably looking to you not just to retain customers, but also to drive revenue growth. It’s a tough challenge. PwC’s Customer Loyalty Executive Survey 2023 found that even though budgets for loyalty programs are often rising, results can be disappointing. Sixty-one percent of the executives we surveyed told us their customers are now more loyal than before the pandemic — but only 20% of consumers agreed.
It may be time to add a powerful new set of tools: web3. A set of technologies combined with a user-centric ethos, web3 can help you both engage old customers in new ways and capture new, high-value customers you might not be reaching today. It can add innovative, compelling engagement mechanisms to your existing loyalty program. It can even reduce costs. Even though the technology is still evolving, with the right approach web3 can start enhancing loyalty programs today.
What is web3, exactly, and why should you care? Web3 combines digital technologies such as blockchain with new ownership, incentives and community models. That matters because it allows your customers to more fully control, own, share and sell items like digital products, digital services and data. Offering more ownership and control can create better customer experiences and grow engagement, loyalty and lifetime value. Web3 can help companies achieve some valuable benefits.
With web3 for customer engagement, there’s no need to dive in at the deep end. It’s typical to start small. But as you build up your initiative, pilot by pilot and piece by piece, you could aim for a program that will eventually have certain characteristics.
Not every company has a loyalty program or customer base that could benefit from web3 today — but many do. The key is to determine exactly what web3 can do for you, then proceed in a way that can control costs and manage risks while boosting flexibility and trust. These guidelines can help get you started.
Identify the right audience. Do you have a significant demographic segment that web3 loyalty programs might excite? Do you seek to drive growth and lifetime value with younger consumers and digital natives? Identify exactly who a web3 pilot should target.
Customize a solution for your business. Carefully design a web3 experience that aligns with your brand and is accessible and enjoyable. With the most effective web3 solutions, users don’t even realize they’ve engaged with web3 at all.
Start small and scale later. There’s no need to fully reinvent your existing programs to get started. At this point in the web3 loyalty life cycle it’s acceptable to experiment, fall short and move on to another activation. The goal is to help build affordable ways to engage and collaborate with customers — giving them a vested interest in helping your web3 program scale and succeed.
Deploy trust-by-design. It’s better to design trust in from the start, rather than racing to close gaps after programs are up and running. Design web3 pilots to help reduce the new risks around factors like identity authentication, privacy, cybersecurity and compliance.
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Partner, Governance Insights Center & National FinTech Trust Services Co-Leader, Washington, PwC US