Previously, brands offered products and services in exchange for money. Lately, that is starting to change. As I mentioned in my last book ‘The Offer You Can’t Refuse’, this ‘ordinary’ exchange is often no longer enough; customers expect added value, both for their lives and for the world. Companies that meet this need are currently ‘only’ creating a competitive advantage for themselves, but I hope that at some point this will become the new standard for CX.
And that’s where Web3 comes in. Companies will have no choice but to provide additional value (besides the product or service itself). This will speed up the process as it will cause a shift in the balance of power between the brand and the consumer. The reason for this is that the data, which was previously in the hands of companies, will be reassigned to the user with Web3: the customer will now be able to choose whether brands can use their data or not.
I think this is going to change a lot in the way companies sell their offerings or how they organize their marketing because the principle of ‘give us your details and in return we’ll give you great products and services you can buy’ is no longer enough. In fact, the value of that data to businesses is currently much greater than it is to consumers. And that’s why I strongly believe that companies will have to increase the benefits they provide to consumers in various ways if they want to use that data for marketing, optimization or other processes.
Here are some examples:
1. More personal value through data
This fits me perfectly ‘partner in life’ model outside The offer you can’t refuse† It’s a great way to extend value beyond the traditional offering. The point here is to go beyond the customer journey and answer the journey of life of your client. What aspects of your life give negative or positive energy? What things cost you a lot of effort? If you can provide answers to these questions, you can optimize the emotional relationship with your customers.
A good example in my book is the Samsung refrigerator that scans the contents to see what products are inside. This information is linked to a recipe database, allowing the refrigerator to suggest certain meals based on the ingredients it contains. If one or two of the ingredients in a particular recipe are missing, the refrigerator will automatically add them to your next shopping list. In this way, the owner of the refrigerator is helped to prepare the family menu for the next day. At the same time, the refrigerator also has the option of choosing the ingredients closest to their expiration date, so that they can be used before it is too late. The refrigerator is a partner in determining the family diet, as well as in the fight against costly and environmentally harmful food waste.
This is a great way to convince the consumer to share the data they will now own in the Web3 era. Why? Because it increases the value for both parties: both for the brand and for the consumer.
2. More contextual value through data
Another model of The offer that you cannot refuse is that of “save the world† It is about companies assuming their responsibility to do good for society as a whole. Every company has strengths that it can use to create social and ecological added value. They will have to look for concrete solutions and contributions with which their company can have a real tangible impact.
Lately it has been interesting for me to see how the the sphere of influence of a brand or organization expands† In recent decades, most organizations have focused on their own company’s sphere of influence: their own organization, processes, employees, products, and their industry. Only a small minority spent time taking action on the problems and challenges facing the world. You can see that this is now completely changing, especially with events like the pandemic and the war in Ukraine. Companies no longer just keep an eye on what is happening in the world, but play an active and influential role in it. We are also seeing an increasing number of clients who expect organizations to become part of the solution and actively influence every part of society and not just their own business and industry.
This broader contextual focus could also act as an incentive to persuade Web3 users to share their data if it could help companies, for example, fight deadly diseases, reduce carbon emissions or waste, better manage cities or fight inequality.
3. More financial value through data
This is probably the simplest exchange of value for data: companies could offer users a micropayment in exchange for their data. This could work, for example, in R&D environments where brands need large amounts of personal data to create useful solutions. Think of pharmaceutical companies that conduct research on certain genetic (or other) diseases. Or smart city governments looking for ways to better optimize their architecture and urban planning.
This approach is likely to work best in conjunction with one or two of the above models: if the consumer feels they can recapture not only the financial value of the data, but also the personal, social, or environmental value.
4. More shared value with smart contracts
As you may know, I am very excited about what NFTs can do for customer engagement and loyalty by creating a shared interest for the customer. It could create new customer loyalty models and even entirely new direct-to-consumer business models. For example, imagine that a very talented singer doesn’t get a record deal, even though he has a lot of fans on TikTok. So you could, for example, release a first album in the form of NFT. What’s great about this is that true fans could also gain access to a portion of the revenue via a smart contract on this NFT. When you consider that in the old world 90% of the value went to the record company and only 10% to creative talent, this distribution of value is pretty smart. Especially when you realize that in this way the first fans become super loyal ambassadors and shareholders with a shared interest. Just imagine how much they could earn if that singer was someone like Ed Sheeran or Rihanna. When he wins the brand, the client wins and I love that.
This one is obviously different from the previous three, as it’s not exactly a way to convince consumers to share data. But like the examples above, it’s a great way to create more value than was possible in the old world of Web2.
It always excites me the most when I see certain trends come together into something much greater than the sum of its parts and this could be one of them. There is a great personal, social and environmental need for brands that provide solutions to challenging, pressing and complex problems. And at the same time, you see this new kind of internet that will change the data models (whether it’s for making money, optimization or marketing) of many companies. They will have to come up with solutions that restore the balance between value for themselves and for the customer, after it was thrown off balance with Web2. If the value becomes equal again for both parties, the problem and the opportunity could meet in a very interesting way.