Web3 is the future. By implementing adaptable strategies now, you'll position your business for success during the Web3 era.
Influencing the new way of marketing data - Web3
How will Web3 influence marketing? Guillaume Ang unpacks the impacts and consequences for companies trying to reach their customers and their data.
Web3 is the next generation of the World Wide Web.
With Web3, the internet as we know it is set to be truly decentralized. The goal of Web3 is to focus more on privacy for all individual users and transparency in the World Wide Web.
Web3 is a new paradigm driving a need for online businesses to find new ways of collecting data. Making Third-Party Data outdated and putting Zero-Party Data as the hero at the forefront of data collection, Web3 calls for engaging personalized online journeys for all users. We'll dig deeper into how the investment in personalisation for your users can drive exponential results throughout the article.
What is Web3... what is it, exactly?
Before we go any further, let’s go back to the basics and give an overview of what Web3 is all about.
Web3 is a new kind of internet built with decentralized blockchains.
What is blockchain? This is a database shared within the computer network. Blockchain stores information electronically, in digital form. While it is known in cryptocurrency systems, it is becoming part of the online space (Web3). This data and information is secure and decentralized, which creates security around the data and does not need third-party assistance.
National Public Radio (NPR), an independent media outlet, explains that “in a Web3 world, people control their own data and bounce around from social media to email to shopping using a single personalized account, creating a public record on the blockchain of all of that activity”. To break it down, one person has control over their data. Not Third-Party cookies like we see now.
The next step in the growth of web businesses is building more interactive and social connections. Known as more of a virtual experience for each user. Why? Because when we create more personalized experiences and connect with our audience, it not only creates a better user experience (building more connection and association to a brand), but gives each user (who will have more control over their data) more reason to give it to businesses they connect with and like.
Also, we are moving away from tracking platforms. This shows online businesses why they need personalized web experiences (to collect and capture data), whether in the web the way we know it but also in decentralized finance (DeFi), in Web3 and in the Metaverse.
If you think Web3 isn’t something to think about, our developers sure think so, with statistics showing over 34,000+ new developers committed code to Web3 in 2021. This is the highest in history!
How does Web3 impact marketing data?
In the world of Web3, there is more decentralization and security around data. Users have more control over who they give their data to (and who they don’t). Meaning it will change the way marketers store data but also how they collect it.
This impacts how an audience is targeted and marketed to, making personalization an essential factor in marketing strategies moving forward. Why? Because users don’t have to give their data to a business they don’t feel is connecting with them. They now have a choice. Third-Party cookies will no longer be collecting data so companies have to collect it from users. The users, as you now know, have control.
Consumers will likely be more educated about their data and more protective of who gets hold of it. Meaning marketers will have to find more ethical and new (more tailored, engaging and personalized) ways to gather data.
Businesses have collected data in the past through advertising, some PR efforts and by creating awareness of their brand and services.
They have also collected data through Third-Party cookies, which will soon be removed by most web browsers. This is known as Third-Party Data. While not having access to this data can be challenging, it motivates brands to find out not just basic information about consumers but more personalized and detailed information (ethically) to create more engaging and connected marketing strategies.
The change in the way we collect data through Web3. This is what it will look like:
- No Third-Party Data: with Blockchain technology, Web3 gives individuals the power and opportunity to control their own data and how it is used and distributed. Users will no longer need to provide their private information to a Third-Party.
- No data theft: Hacked online accounts are the thing of Web2, but in an ideal decentralized online world, this shouldn’t happen. User data becomes private to the individual.
Decentralization gives privacy rights to each user. They don’t have to provide it to corporations, who then sell it to advertisers. This changes the way businesses interact and engage with their audience. We explore this more in another article.
How to collect marketing data with Web3?
While users have more control over their own privacy and their own data, interaction and connection of value become important. Building trust and collecting data in a personalized way is critical, making Zero-Party Data the hero in the Web3 world. Why?
When you collect Zero-Party Data, you are collecting more than just an email or a phone number. You start to generate and collect more personal information regarding preferences and interests. Learning more about what a user likes, doesn’t like. Rather than generalized information making one user just a “number” in a list. Each person tells a business more about what it is they need.
But how do you get this if Web3 is making it harder even to get an email? Let alone personal information?
The answer lies into one key recipe: by creating tailored engagement experiences with your brand, product or service.
The more good and engaging personalized experiences you create, the more trust you create, the more information you receive. This information then allows you and your business to create even more personalized experiences (you see where we are going with this?). Sounds like a virtuous cycle, right? We will explore this in a Decentralized User Engagement article.
As we mentioned in our article dedicated to Zero-Party Data, it “is about asking the right questions to get the answers you need. This can be done through quizzes, surveys, polls, loyalty programs and more. It is about asking directly. You don’t need to assume, you know”. You can learn more about Zero-Party Data directly from this article.
How to anticipate on Web3?
While all the full motions of Web3 might take time to integrate into the online world, Web3 is already happening. Businesses are preparing for a new web.
They are shifting their focus to new strategies and creating different online user experiences. Changing the way we market and changing what we once knew to be true in the online space.
How have we seen this already? Through signup flows. We have seen businesses creating more details into how they ask questions to their audience. For example, you head to a website and sign up to a free trial for a productivity application.
Instead of putting in your name and email, you are asked questions like:
“What type of business do you run?”
“What role do you play at the business?”
“How will you be using this platform?”
These questions build more information and profiles about each user that uses this productivity platform. Giving the sales, marketing and all other teams from the productivity application more information about their users.
But, creating engaging and personalized experiences to build connection and trust with your audience takes time. This is about learning human psychology and how your users interact and engage with what you offer. Gaining knowledge and assets is important now because it takes time to work out the engagement piece of a personalized experience.
It is time for us all to start shifting the way we interact online and use the platform to generate connections with our customers. So while Web3 hasn’t taken over Web2, yet, it is time to get ready. Start now and then when Web3 arrives, you will be resilient and ready.
You are early in this journey of the ‘Future of Marketing Data’. You see, the new era is coming, led by Web3. Now is the time to start shifting. Start looking at the development of your business and marketing from a whole new perspective.
This is your time to learn about the new way of collecting data in the world of Web3 and then create a decentralized user engagement approach to your business (we have an article on this).
Web3 is the future. We are here to help you start now. To begin creating personalized experiences and gain the trust of your customers and users. To learn more about them so you can benefit from your own data in the future.
How can you do this? By creating flows with Upflowy. Upflowy gives you everything you need to build a story worth engaging in with only a few clicks. Easily add imagery, video, and animation to your signup flow and customize it all to your branding.
What’s next? We will show you how to create more personalized experiences as part of Web3 through our next article around Decentralized User Engagement and personalization.
You can also get started by learning more about Upflowy.