Web3 Trends That Can Improve Your Business
The future of business lies in Web3. As the latest iteration of the web, it runs on the principle of a decentralized internet where data is owned and monetized by users rather than large corporations. Although we’ve only been scratching the surface, we’re already seeing the ways it’s changing the landscape, especially for women-led enterprises. Diversity and accessibility are pillars of Web3, and it’s creating opportunities for women to take up space in a male-dominated field–whether as forces behind the technology or as revolutionaries utilizing them in business pursuits. As 2023 rolls along, here are some Web3 trends to anticipate and apply as a business leader.
Increased consumer engagement
Over time, NFTs (non-fungible tokens) have become synonymous with pixelated art. Though seemingly unlikely, NFTs have become a touchpoint between brands and consumers, and this year, they are poised to evolve beyond artistic limitations to enhanced functionality. As a result of this, Dune Analytics reports that brand-centric NFTs have earned $245 million in sales as of January 2023. This is despite last year’s crypto crash which has seen many digital assets tumble. Utility NFTs, as they’re called, are the next generation of membership cards. They provide perks to reward loyal consumers, such as invites to events and product discounts. More than fulfilling a transaction, however, utility NFTs engage consumers by offering them a curated experience unique to the brand.
To illustrate, when Starbucks Odyssey launched earlier this year, the coffeehouse chain’s first collection of “stamps” sold out in 18 minutes. These NFTs were similar to their real-life counterpart, but to purchase them, invite-only members had to complete activities, quizzes, and in-store purchases. This not only drove engagement but added value to the consumer relationship as well.
Enhanced digital marketing
Most campaigns today are a product of effective digital marketing. In the Web3 era, this has expanded beyond simply sharing your offerings online. Marketers are now expected to master digital platforms, stay on top of trends, and produce interactive content. LHH highlights how today’s chief marketing officers need to have a handle on business strategy in order to juggle product development, sales management, customer service, and communication channels. By having a grasp on these, they can optimize digital marketing for better profits, growth, and branding.
This can be overwhelming, but Web3 in 2023 is seeing the mass integration of AI and machine learning technologies in marketing strategies to ease the burden. The Influencer Marketing Hub even states that 61.4% of marketers in 2023 have used these technologies. Such Web3 tools proffer multifaceted ways of analyzing data and predicting consumer behavior, urging major companies to roll out their own innovations. Among those who have made their move is Shopify, who recently launched an AI-powered shopping assistant for its consumer-facing app Shop. The feature provides personalized recommendations by analyzing search queries and keyed-in requests–while simultaneously providing the e-commerce app with tremendous consumer insights. Through this, digital marketing tactics are more tailored and therefore able to penetrate their target markets without the need for extra womanpower or “manpower” 😉 .
Optimized blockchain for brands
What do powerhouse brands Nike, Tiffany’s Co., and Gucci have in common? They all leveraged blockchain tools over the past year to get into the Web3 retail space in 2023. Although fairly young, the segment is already ripe with potential. According to Emergen Research, its global market forecast is expected to peak at $81.5 billion by 2030, thanks to a growing demand from end-use sectors such as e-commerce and retail. Indeed, these brands were able to launch digital communities, introduce co-creation projects, and even accept crypto as payment in select stores.
While some small businesses may not have the resources to afford to build blockchain technologies from scratch, the emergence of Blockchain-as-a-Service (BaaS) easily presents an alternative. By utilizing BaaS, businesses can develop blockchain-based applications to streamline their operations. In the Web3 retail space, here’s what it can look like: improved product development, traceability, and sourcing transparency. In the future, it could evolve to include addressing fraud and counterfeits, however that may manifest.
Shifting priority
Across various Web3 trends for 2023, one factor remains constant: a systemic shift from short-term gains to long- term value, both for the consumer and the business. Technology takes two to three waves to mature, and with Web3 already in its second wave, we can expect to reap its most useful fruits soon. The technology of the future is well within our grasp, ready to change our businesses.