Customer acquisition is becoming increasingly competitive, complex and expensive for brands looking to successfully market their products. The result? A global marketing arms race where marketing budgets have grown significantly in recent years, as evidenced by the following rapid data:
Despite increasing spending, significant data still remains outside the customer acquisition equation due to technology limitations. How does Starbucks know if a consumer visited one of their Target locations because they bought dog food instead of a new video game? How does a company like Nike know how often buyers of their latest running shirt actually wear it while running?
Today, it is impossible for brands to answer these questions, that is, until they adopt blockchain technology.
Central to this evolution is a new single-wallet approach to crypto ecosystems. Poised to significantly improve the user experience of crypto, it has the potential to unlock a hidden world of superior consumer data and interconnected brand ecosystems that, while still evolving, will forever change customer acquisition and the way brands will coexist.
On-chain data is revolutionizing the way brands engage consumers
Blockchain implementation will significantly ease the burden of customer acquisition and bring on-chain data to the forefront of marketing efforts worldwide, enabling brands to be much more responsive to consumer needs. On-chain data is superior to traditional consumer data in many ways and is key to powering the future of customer acquisition. Here are some of the benefits:
- With on-chain data, companies don’t have to pay for licenses or subscriptions to access data.
- Since on-chain data is secure, companies do not need to invest in expensive security solutions to protect their data.
- Because on-chain data is transparent, companies can ensure it hasn’t been tampered with and don’t have to spend so much money on audit and compliance costs.
To gain unprecedented access to previously impossible questions (such as those in the previous section), brands can start implementing blockchain into the consumer journey and bring physical products up the chain. This can be done by leveraging emerging technologies such as NFC chips paired with NFTs, which is what Nike has already done with their RTFKT WM chip.
As products are increasingly taken on-chain, a collective of blockchain-integrated brands will form, laying the groundwork for the emergence of global ecosystems of interconnected brands. From there, brand loyalty rewards programs can be linked cheaper and faster than ever before, new experiences can be created around products, and consumer activity can be tracked like never before. These concepts are becoming essential pillars of customer acquisition across the network, and as more companies join, the value proposition for incumbents to improve consumer experiences increases exponentially.
The result? A network effect powered blockchain that strongly encourages brands to join and collaborate on it.
As we consider how these blockchains may continue to take shape over time, it is essential to highlight the role that decentralization plays in the mix. While some crypto natives are advocating for absolute decentralization, this could pose challenges for brands looking to deliver personalized experiences to consumers. Especially for luxury and service companies, designing and delivering tailored experiences is extremely important. Striking the right balance of decentralization is therefore essential to enable these industries to take advantage of blockchain technology.
The solution comes in the form of Web2-optimized blockchains like Aurora, where brands enjoy the dual benefits of enhanced agility and the ability to shape customer experiences, leveraging features such as:
- Control access to their own blockchains
- Dictate which apps and tokens are available to trade
- Determine if they, or consumers, are responsible for gas costs
Despite its benefits, blockchain has yet to be adopted on a global scale, and there are no ecosystems of brands leveraging on-chain data to deliver greater value to consumers anywhere. This can mainly be attributed to the difficulties brands and consumers have in getting into crypto, none of which have been mentioned more often in recent years than those arising from crypto wallets. It’s no secret that they offer a steep learning curve and other sources of friction that typically slow down the onboarding process for brands and consumers alike.
A single-wallet approach is key to developing brand ecosystems
Crypto natives have become accustomed to managing different wallets across different blockchains and applications, embracing the inherently complex nature of crypto. However, the prevailing “multi-wallet approach” creates significant friction within apps, making it less suitable for the average user or Web2 brands looking for a smoother experience.
To put this in perspective, imagine how frustrating it would be if gamers had to have a separate account for every PlayStation game they play!
Adopting a single-wallet approach, like that of the Aurora Pass, is a strong path to alleviating the challenges of wallet tracking for individuals while fostering the growth of the interconnected brand ecosystems that are still missing today.
In addition to the significant benefit of simplifying the onboarding process for users, implementing a single-wallet approach also simplifies blockchain implementation for brands. By consolidating digital assets within the same wallet, brands can easily leverage on-chain data and collaborate on joint activations with other brands. This opens up opportunities for the formation of extensive brand ecosystems, facilitating growth and synergy between participating brands.
Imagine the possibilities that could arise when, say, a wine brand can identify a customer’s Starbucks loyalty NFT and give them a special partnership discount. We’ll also see famous musicians easily verify their top fans and send rewards on-chain, consumers will have the ability to sell and transfer loyalty programs, and much more. These improvements will not only significantly reduce customer acquisition costs, but also remove barriers to onboarding in the Web3 ecosystem.
Global brand ecosystems will grow
The widespread adoption of blockchain technology in customer acquisition will predictably generate several large distinct global ecosystems, each with a mix of brands working together to gain consumers’ attention, money and loyalty.
It will be fascinating to see how ecosystems work together to compete with other ecosystems using different blockchains, wallets, etc. For those who integrate with chains that offer flexible customization options while using a single-wallet approach, they may very well have a competitive edge.
Ultimately, what’s important about these future brand ecosystems is that the consumer wins. Everything from shopping and loyalty programs to gaming becomes much easier to use and better suited to provide value. With every brand on the planet able to benefit from this concept and millions of users at stake, the development of blockchain-powered brand ecosystems is a clear path to achieving blockchain mass adoption.
Sponsored by Aurora.
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