The promise of Web3 is one that we can’t possibly take for granted. This technological marvel is looking to be the future of the landscape, providing users with better control of their data and the ability to choose how they interact with the internet as we know it.
With concepts like artificial intelligence and blockchain technology, Web3 is undoubtedly the next iteration of what the internet is meant to be. And although it is yet to reach the levels of adoption that its proponents hope, Web3 is moving quickly to that next stage.
The problem, however, remains that Web3 won’t be able to reach its full potential without the necessary customers. Like the J-turner before it, there is a growing sense that it might take a while before Web3 really flourishes and becomes the frontier of the future.
Web3 is still very much in its infancy, and the general consensus is that we might have to wait a few years to see it really reach millions of people. The problem, though, is that Web3 platforms might not necessarily have that time. These services are in a race against time to show that their solutions are catching on - both as a form of social proof and as a means of appeasing investors who already committed millions to them. Otherwise, the dream of Web3 could die in infancy.
Fortunately, many Web3 platforms have the opportunity to solve this by turning to a solution that has helped their counterparts in the traditional tech space - loyalty programs.
The system of loyalty programs is one that has stood the test of time. And while Web3 will change a lot of things in the tech landscape for good, loyalty programs won’t go extinct because of it.
A platform can easily offer different types of incentives and attractions to customers in order to get them to join and ramp up adoption. From freebies like discounts on services to the opportunity for affiliate marketing, loyalty programs are varied - thus allowing you to enjoy complete freedom over what you offer your customers for their continued patronage.
In this interview, we spoke to the founder and chief executive of Metopia - a reputation-based Web3 loyalty platform - on his vision for his company and how loyalty programs can change the landscape of Web3 marketing.
1. What do you think is the biggest impediment to Web3 adoption?
In our view, cost is the biggest impediment to Web3 adoption. For users, the cost is mainly in two aspects: the time cost to build awareness of the new technology, and the on-chain transaction costs.
Almost no one is born a Web3 user. The barriers of entry, such as the complexity of cryptocurrency wallets, the technical know-how required to navigate decentralized platforms, and the unfamiliarity of blockchain concepts, can discourage mainstream users from fully embracing these technologies. From the perspective of awareness, Web3 is the creative destruction that is built on critique and rethinking of the established order. We are born in a centralized world that makes every effort to chase efficiency, and the ubiquitous game between efficiency and decentralization in blockchain is a new order that requires repeated self-adaption for both builders and users. Hence, both the practice and perception of Web3 are challenging the comfort zone of mainstream users.
2. How does Metopia hope to address this with loyalty programs?
In two aspects, Metopia offers a loyalty toolkit for Web3 teams to gamify the engagement process and lower the user cognitive load, and besides, Metopia is a light entrance for common users to experience blockchain-based loyalty system, sharing Web3 primitives like decentralization and transparency.
Loyalty programs aim to reward customers for brand engagements. Metopia's loyalty toolkit has its classic side - similar incentive apparatus including points and badges to boost engagements. For early Web3 projects, when users were always discouraged by the steep learning curve and high transaction costs, incentive matters. Token airdrop is now a more common way, but a loyalty program means more. By recording users' contributions with points and on-chain badges, our toolkit allows every community to create its own sustainable user incentive loop. Additionally, teams can differentiate users and motivate them with incentive methods offered including instant tokens, incentive pools, raffles, and governance powers. Thus users have a gamified growth experience when using the product, and their value created is reasonably redeemed, while the brand gains better user retention and a refined understanding of users through contribution records over time.
If we try to position Metopia in the broader world, the second scenario occurs. Badges within a brand are classic, but a bit boring, while when badges and the metadata are recorded on the blockchain with discoverability and portability, they can become part of your digital identity in the long run. And when badges, NFTs, and blockchain are combined, it unlocks new experiences and possibilities for traditional users. Alex Stein
3. Are Web3 platforms on the right track to organic growth?
I would say that the bear market de-bubbling process is the best time window for web3 platforms to return to organic growth. When the easy liquidity environment no longer exists, it must be an unquestionable choice for Web3 builders to return to technology building, demand-driven, and user growth at the moment. I say return because we are perhaps on the verge of straying. There's a trend in the Web3 realm where the means itself becomes the end. This loss of focus always revolves around tokens, and token airdrops, supposed to be a means of user acquisition, become the prioritized purpose of the user.
It must be acknowledged that airdrops are an innovative Web3 means of acquisition, and the early Uniswap and 1inch airdrops were a generous reward for the early brave. Token airdrops are firstly a go-to-market strategy, while Web3 token wealth effect sometimes entraps the users and builders into the airdrop curse, and thus the product-market fit is ignored. Many airdrop campaigns have proven to be too expensive a means of customer acquisition. Kerman Kohli offered his data-driven insights that
The difference between token airdrops and loyalty programs should be clear: sustainability. If token airdrop is an effective way for new user acquisition, loyalty programs should be designed when the community starts to emerge, to ensure that incentives are properly rewarded to the right and real user. In other words, token airdrops can be a special round for a loyalty program to reward early users that made contributions to the project, but it's not supposed to be the only way since user acquisition and retention can't stop at one-off token issuance. The instant incentive is a hook to activate potential users to experience new products and features, while the loyalty-based incentive program helps projects gather valuable users that are willing to grow with the projects on a long-term, ongoing basis and gradually form a robust community.
4. What other marketing tactics can Web3 founders use to boost adoption?
Collaboration within the Web3 ecosystem is crucial, but it's equally important for users to educate themselves about the possibilities and benefits of decentralized technologies. Web3 platforms can play a pivotal role in facilitating user education through various means, such as tasks, rewards, and loyalty programs. By incentivizing users to engage in educational tasks and providing rewards for their active participation, platforms can encourage users to learn about the underlying principles and functionalities of Web3. Loyalty programs can further motivate users to deepen their understanding and explore different aspects of the ecosystem. Empowering users with knowledge not only enhances their experience but also fuels the organic growth of Web3 by fostering a well-informed and engaged community. Through collaboration and user education initiatives, the Web3 ecosystem can thrive and unlock its full potential.
Conclusion
Web3 is expected to be a revolutionary piece of technology that will change the way we see the overall tech landscape. But, like many iterations of the industry before it, there is a significant need for Web3 to catch on with customers.