14 lines
3.7 KiB
JSON
14 lines
3.7 KiB
JSON
{
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"HubID": "2647",
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"Date": "5/22/2023",
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"HubTags": [
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"External Platform Posts"
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],
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"Contacts": "",
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"Companies": "",
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"File": "",
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"Image": "",
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"Summary": "#web3 for #consumerbrands is currently off the rails and on life support. I'm watching for technology improvements over the next year that will hopefully get us back on track and I am cautiously optimistic that brands can deploy on or after H2 2024.So that means there is not much activity, but here and there some interesting market activations pop up. Here is one.",
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"Notes": "<p>#web3 for #consumerbrands is currently off the rails and on life support. I'm watching for technology improvements over the next year that will hopefully get us back on track and I am cautiously optimistic that brands can deploy on or after H2 2024.</p><p>So that means there is not much activity, but here and there some interesting market activations pop up. Here is one. <br /></p><p>Pretty Nail Graffiti is a web3 native #beauty that appears to be rolling out a nail polish applicator with an NFC chip connected to the customer's phone that registers use and gives them points for application. <br /></p><p>What's different here is the novel use of an NFC chip in a beauty product applicator, which I have not seen before. <br /></p><p>Next difference is that web2 loyalty programs are generally driven off purchases, whereas web3 can incorporate actual use of products to help reward customers. Here, the brand wants to reward use, not just purchase. <br /></p><p>There is no reason why the brand cannot do all this using web2, but they would need to do so via their own proprietary and closed systems. With web3, it is all open and interoperable. I won't say it is cheaper because web3 tech is still hard to work with and as a result, expensive, but over the long run it most likely will be cheaper to run a loyalty program off of open blockchains using #nfts rather than closed, proprietary systems. <br /></p><p>Final difference between web2 and web3 loyalty programs is that in the web3 environment, consumers can more readily sell their loyalty membership/points/rewards if they no longer want to be tied to the brand. For the brand that means the efforts that went into building that loyalty from the former customer is not stranded. Let me explain.</p><p>In a web2 world, the backend retention, data collection and ascension efforts are stranded when the customer moves on. It is hard for brands to retain customers because most product owners drop off the ascension chain at some point and move to other brands. Even superfans eventually move on. Very few brands can command loyalty for long periods of time.</p><p>In this case, all the data, history, and effort that went into trying to retain and/or ascend the customer up the value chain is stranded and mostly useless. <br /></p><p>But in a web3 world, all that effort to build loyalty from a customer can be sold or transferred to someone else who wants to take over and who care's about building loyalty. All that data and effort is no longer stranded because it follows to the new owner, where the brand can continue to build data and effort tied to the loyalty NFT. <br /></p><p>How about the brand profiting from this sale? Not only can the brand profit from the sale if they set a secondary market royalty in the smart contract, but that revenue is highly profitable, with most of it going to the bottom line, which can move net profits substantially. I have a simple model here that shows - <a href=\"https://docs.google.com/spreadsheets/d/12jxwpvmsmjK7bFi6Z2ZfPbYFFt_zWUpGn-WZy8S_PYg/edit?usp=sharing\" target=\"_blank\">https://docs.google.com/spreadsheets/d/12jxwpvmsmjK7bFi6Z2ZfPbYFFt_zWUpGn-WZy8S_PYg/edit?usp=sharing</a><br /></p>"
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}
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