Victor slammed his desk in frustration. The CEO for two years now, he desperately needed to deliver positive, concrete results. The steaming cup of coffee on his wooden desk wobbled precariously, nearly spilling over the piles of sales reports beside it.
Despite investing a fortune in a massive TV and online advertising campaign to launch their new product line, sales hadn’t shown any significant increase as expected. It was an exasperating situation. 
What had gone wrong? Was creativity lacking? Did they choose the wrong platforms for their ads? Were their prices too high compared to competitors?
A Flawed Strategy in a Changing World
None of that! The problem was internal. The company was still operating with the philosophy of the ’80s and ’90s. They manufactured products, and a marketing manager, with the best intentions, went out to find customers wherever possible. That strategy worked for decades, but not anymore.
The world had changed. Customers had transformed their decision-making process, now beyond the direct control of companies. Those that didn’t update their marketing strategies would likely vanish into obscurity.
The Old vs. the New Consumer Journey
In the old strategy, customers considered several brands before making a final purchase decision. Their relationship with the brand and seller ended there. The focus was building a brand and stimulating the consumer at the point of sale.
Today, it’s entirely different. The consumer now goes through a decision-making process with four stages:
- Consideration of a set of brands. Nowadays, consumers begin with a smaller number of brands than before. Traditional advertising can still influence a bit here by placing the brand in the consumer’s mind.
- Evaluation of the best option. Here, the consumer relies on what friends, acquaintances, online reviews, and influencers say about the product or service. In this stage, consumers often add new brands they were unaware of and discard some they had initially considered.
- Purchase, which can be done online (increasingly via e-commerce and mobile apps) or in-store.
- Experience, Advocacy, and Loyalty. If the attachment to the brand becomes significant, the consumer enters a cycle of Purchase-Experience-Advocacy-Purchase, completely skipping the Consideration and Evaluation stages. The consumer becomes loyal to the brand and champions it everywhere. Does this sound familiar with brands like Apple, Nike, or Tesla?
The Web3 Revolution Enhancing Consumer Engagement
This shift in consumer behavior has been further accelerated by the advent of Web3 technologies, blockchain, AI, and the rise of digital assets like NFTs and cryptocurrencies. Consumers are now more empowered, connected, and informed than ever before.
For instance, blockchain technology provides transparency and trust, which are crucial in the Evaluation stage. Smart contracts and decentralized applications (dApps) enable secure transactions and interactions without intermediaries, enhancing the customer experience.
Non-fungible tokens (NFTs) and the metaverse are creating new avenues for brands to engage with customers, offering unique digital assets and immersive experiences. Brands leveraging NFTs can foster deeper connections, as customers feel a sense of ownership and exclusivity.
Rethinking Marketing Strategies for the Web3 Era
This transformation has two enormous implications for marketing:
First, instead of focusing on generic advertising on TV, radio, and online, marketers should influence each stage of the consumer’s decision process. Statistics show that companies continue to invest between 70% and 90% of their budget in traditional advertising that barely influences consumers in the Consideration and Purchase stages. However, consumers today are much more swayed during the Evaluation and Experience-Advocacy-Loyalty stages. The most powerful influence is, generally, the recommendation of another consumer, whether known or unknown.
Second, advertising budgets are currently designed for an obsolete strategy. To stay competitive, companies must reallocate resources to embrace Web3 innovations, AI-driven personalization, and community engagement.
Influencing Critical Stages with Web3 Technologies
To impact these critical stages today, companies must ensure a solid presence at every point of contact with the consumer.
In the Evaluation stage, it’s crucial to have positive testimonials on all online platforms. Implementing blockchain can enhance transparency in supply chains, building trust. AI can analyze customer data to provide personalized recommendations, while smart contracts can offer secure and seamless transactions.
Moreover, brands can utilize NFTs to reward loyal customers, creating unique digital collectibles that serve as status symbols within communities.
In the Experience, Advocacy, and Loyalty stage, developing community initiatives is key. Creating a Decentralized Autonomous Organization (DAO) around the brand can empower customers, giving them a stake in the company’s decisions. This fosters a strong community and governance model, enhancing loyalty.
Additionally, engaging customers through Web3 gaming, virtual events in the metaverse, and interactive experiences can deepen their connection with the brand.
The New Role: Chief Customer Officer
All this requires excellent coordination across the marketing department. Instead of a traditional marketing manager, companies today should consider having a Chief Customer Officer (CCO). This person would be the conductor orchestrating all departments, generating content for all actions, and determining the overall strategy.
The CCO would leverage data analytics, AI, and insights from the community to drive innovation and research. They would focus on security and privacy, ensuring customer data is protected, and compliance with regulatory updates is maintained.
A Success Story Rewritten
In the company mentioned at the beginning, they recognized the urgent need for change. They embraced Web3 technologies, restructured their marketing strategy, and in the next launch, they positioned themselves as the number one brand in their field. Sales results exceeded all expectations, demonstrating the power of aligning with new technological trends.
Are You Ready to Transform?
How are your company’s sales results? Are they at the levels you projected? If not, perhaps it’s time to make a significant turning point in your entire strategy. The good news is that small and medium-sized enterprises can play this game with new rules and on equal footing against any large corporation.
Are you ready to embrace the trends of this new world? Do you dare to rethink your entire strategy and join the Web3 revolution?
Knowledge is learned from books; wisdom comes from life!
#Web3 #CustomerExperience #MarketingStrategy
