Consumers Are Ready For Web3, But Don't Think Brands Are Good At It: Study

It’s hard enough coping with the changes in email over the past few years. Now there’s a new wrinkle: How many are prepared for Web3?

Probably not many, judging by "Catching the Wave: Engaging Next-Generation Consumers With Web3," a consumer study released Wednesday by Pico NFT.

The survey shows that 51% of consumers are interested in using Web3 technologies to engage with brands. But 48% say the brands are unsuccessful at using these technologies, and only 31% believe they are effective. 

But consumers say these attributes will increase their engagement with new technologies. Note that the top one shows a certain wariness:

  • Able to control data/privacy—44% 
  • Easy-to-use experience—36% 
  • Access to exclusive benefits/offers—33%
  • Unique experience not found elsewhere—38%
  • Interact with brand in fun way—24%
  • Have input into brand decision making—22%
  • Immersed fully into brand experience—20% 
  • Exclusive experience not available to others—17%

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Let’s pause for a definition. How many people, even marketers, know what Web3 is? The study defines it as:

  • Metaverse (virtual worlds)
  • Cryptocurrency
  • Blockchain
  • Non-fungible tokens (NFTs)
  • Distributed autonomous organizations (DAOs)

NFTs are an especially hot opportunity. Of the consumers in this sample, 41.2% would like to engage with brand NFTs within the next 12 months. And 24.2% expect to do so in the next 1-2 years. Of course, 22.9% say they never will, and the remainder say it will take years before they do so. 

There is a difference between the types of NFTs: 41.7% of consumers are likely to purchase when collectible NFTs are included, and 46.8% when there are utility NFTs.  

What good are NFTs? Consumers are attracted by these utility NFT benefits:

  • A way to collect loyalty rewards—37.4% 
  • A way to support interesting causes—27.8% 
  • A community to get branded offers/content—26.6% 
  • A way to get tickets to live events—23.9%
  • A community to connect with like-minded people—20.9% 
  • A way to obtain digital goods in a virtual world—19.1% 
  • A branded collectible to share with others—16.1%
  • A set of branded challenges to complete—15.5%
  • A branded collectible to hold in a digital wallet—15.1%
  • A way to remix branded content & earn money from it—14.5%

And utility NFTs? Consumers will respond to these offerings:

  • Members-only discounts—43.1% 
  • Exclusive merchandise—31.5% 
  • Early access to special product features—30.7% 
  • Upcoming new product previews—24.2%
  • Exclusive brand content—23.7% 
  • Ability to connect with company employees for help/feedback—22.7% 
  • Members-only events—22.5%

One takeaway is that brands must pay attention to privacy-centric programs using digital wallets. Another is that they should deliver easy-to-use experiences with interoperability and smooth onboarding. 

Here's another tip that wasn’t in the study: Make sure that your email systems are integrated with Web3. Consumers expect a high level of interaction—that means promotional, triggered and transactional emails, all three. 

The study surveyed 737 consumers from Sept. 8-14.

1 comment about "Consumers Are Ready For Web3, But Don't Think Brands Are Good At It: Study".
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  1. John MacLane from Private, October 5, 2022 at 6:58 p.m.

    The study surveyed 737 consumers from Sept. 8-14.


    And how were these consumers picked? Because judging by their reactions to NFTs vs. the wider online world, which views them as a toxic passing fad, I'd be happy to bet that selection bias is in play. Bit of a trash article, this.

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