How CPG Brands Can Benefit from the Web3 Revolution
Imagine a world where shopping is not just about buying products but also about owning a piece of digital history. Welcome to the world of Web3, where blockchain, NFTs and decentralized marketplaces are revolutionizing the retail and CPG industries. This emerging technology is not just changing the way we interact with products and brands, but also how we view ownership and value.
In this article we'll explore how CPG brands can enter Web3 and why being a part of the Web3 revolution is essential for their survival in this new age of the internet.
You may already be familiar with the fact that some of the largest early adopters of Web3 technology are large retail fashion brands, like Nike’s new Web3 marketplace Swoosh.
It can seem easier for retail, as the focus on storytelling and providing their clients with one-of-a-kind experiences makes these brand categories more "Web3 friendly," in a sense. CPG brands, on the other hand, may face more challenges and barriers to entering Web3 than retail brands given they typically sell physical products that are consumed or used by customers.
However, this is not to say CPG brands should write Web3 off. In fact, it’s quite the opposite. Let’s dive into three big ways CPG brands can benefit from Web3 technologies.
Improve Customer Loyalty. To start, CPG brands can use Web3 for their loyalty programs in various ways, such as creating and issuing NFTs. NFTs are unique digital tokens that represent ownership of digital or physical assets. CPG brands can use NFTs to reward their loyal customers with exclusive or limited-edition products, experiences or content.
For example, Starbucks has launched a blockchain-based loyalty program called Starbucks Odyssey, which rewards customers with digital stamps that can be redeemed for virtual and real-world coffee experience. CPG brands can also expand their loyalty programs into Web3 by tokenizing transactions.
Tokenization is the process of converting an asset or a right into a digital token that can be stored, transferred or exchanged on a blockchain. CPG brands can use tokenization to create their own cryptocurrencies or loyalty tokens that can be used to pay for products or services or to access discounts or benefits.
For example, Clinique has partnered with Rally, a blockchain platform, to create its own branded cryptocurrency called CLQ, which customers can earn by engaging with the brand and investing in Clinique products or experiences.
Create and Offer Immersive Experiences. CPG brands can create and offer virtual experiences that engage and entertain their customers, such as games, simulations or content. These virtual experiences can help CPG brands showcase their products, services or values, as well as create more personalized and interactive customer relationships.
An example of this is P&G has partnered with BeautySPHERE, a virtual world that engages consumers through simulated and gamified content. Users can interact with articles, pop-ups, and experiences to learn more about P&G’s products and ingredients.
Improve Sustainability and Accountability. By utilizing blockchain, NFTs and decentralized platforms, CPG companies can increase sustainability in their operations.
One way they can do this is by tracking and verifying their supply chains, which can help them identify areas where they can improve their environmental impact. By rewarding and incentivizing sustainable behavior, they can encourage suppliers and other stakeholders to adopt more sustainable practices.
Using Web3 technologies can also help CPG companies improve traceability and accountability.
Consider that Unilever launched a blockchain-based platform, which allows consumers to track the sustainability of its products.
Of course, all of this doesn’t do much if your customers don’t know about it, and plenty of the confusion about early Web3 comes from a lack of information and not wanting to be bombarded by technical jargon.
As with all brand initiatives, CPG brands should aim to educate their consumers in a way that is engaging, informative and valuable for them. CPG brands can educate their consumers about their Web3 endeavors by creating and sharing engaging and informative content, providing incentives and rewards for learning and participation, and leveraging partnerships and collaborations with other Web3 entities.
For CPG brands looking to thrive in the digital age, embracing Web3 technologies is a must. By effectively communicating the benefits to customers and employees alike, brands can build trust and drive widespread adoption. With endless possibilities for innovation and differentiation, Web3 is a game-changer for CPG brands looking to stay ahead of the curve and establish themselves as leaders in the digital space.
About the Author: Dr. Peace Uche, also known as Doc Peace, is the creator of Pivot To NFTs program and the founder of GOLDen Meta, a leading source for creative marketing initiatives, talent services and education. With more than 15 years of experience working with Fortune 500 companies, she crafts compelling stories for businesses worldwide to directly engage their target audience.