Four Ways to Use Web3

In recent years, brands have been tracking developments in Web3 and the promised opportunities the new technology offers to their businesses. From driving brand awareness to increasing customer loyalty, Web3 gives companies the possibility to attract new sets of customers – including Millennial and Gen Z – and engage current ones in exciting ways.

Although there’s been much excitement about the possibilities Web3 technologies offer to drive transparency, data ownership, and closer customer engagement, many companies view the full implementation of these benefits as far into the future. However, forward-thinking companies are looking at ways to future-proof their strategies now with regard to Web3, so they’re not left behind as the technologies mature and consumer adoption accelerates.

As the full vision for Web3 develops, travel and hospitality brands can take advantage of Web3 use cases today to engage their audience – and to attract younger Millennial and Generation Z customers. Consider these four ways you can use Web3 to accelerate your business:

1. Tokenized experience mementos 

If your brand provides an experience worth sharing, tokenizing it can help guests relive their memories – and let friends know about it too. For example, a tour operator can combine video snippets into an Web3 experience token template and let travelers insert their own images into the mix, creating a one-of-a-kind, branded memento. Or, a hotel brand can combine artwork from local artists who represent the vibe of the city with personalized images into a “digital postcard” for guests. With features in Instagram that allow users to showcase their Web3 digital collectibles to friends, it’s a natural way for customers to highlight the experiences they’ve had, plus turn customers into brand advocates.

2. Social impact

For Millennials and Gen Z, what a brand stands for is as important as the brand experience itself. To connect with these customers, consider aligning your Web3 program with a social impact cause. With an underlying smart contract on a blockchain, you can programmatically designate a portion to benefit an organization of your choosing. Or, you can let customers personalize their experience tokens with their media in a co-branded template featuring your cause. With this in mind, select a social impact organization or charity that aligns with your customers’ values, beliefs, and priorities. And as you commission artwork or video for your experience tokens, seek out artists from the communities your customers support.

3. Modern Web3 loyalty programs

Companies can use lightweight Web3-based loyalty programs to attract Gen Z customers. Web3 loyalty incentives can run alongside existing loyalty programs that accrue points and award perks to customers – but with the added benefit of a flexible, lightweight implementation that appeals to younger consumers. In Web3 loyalty programs, companies can offer specific benefits and perks to customers when they hold a specific Web3 token – and then can add additional value and benefits to that token over time to retain guests. Using Web3-based loyalty rewards can also introduce guests to your traditional loyalty program, providing an on-ramp using digital mementos that represent both the guest experience and a commitment to a social cause.  

4. Branded communities

Companies can also deliver utility to customers through curated, private, branded communities accessible to Web3 participants. Brands can extend the conversation in these communities by providing updates about the local area, special events, and the social cause supported by the a digital token. These communities are also a valuable source of feedback for the brand on potential new products and services.  

Web3 tokens are also now being used to deliver special perks, benefits, and content to community members – like access to special events, discounted offers, advance access to new products or services, and behind-the-scenes interviews. One key benefit of private membership communities is that brands can engage customers in a curated, brand-safe environment (unlike less moderated chat channels).

Accelerating Gen Z / Millennial customer engagement using Web3

Web3 can provide a modern way for hospitality companies to engage with Millennial and Gen Z customers – and tokenization can take the concept of customer engagement to the next level. These Web3 tokens are experiences that users will showcase on social media and in their digital wallets for years to come. Companies can deepen the connection guests have with their brands through personalized travel mementos, social impact programs, modern loyalty initiatives and branded communities. Combine these aspects with the privacy and transparency benefits Web3 offers, and you’ll be on your way to capturing the interest of your younger customers – and securing their loyalty with these emerging technologies.

About the Author

Dave Dickson is the founder and CEO of PicoNext, an end-to-end Web3 platform for brands.