Web3 technology is a topic that is gaining more and more attention as businesses try to stay ahead of the curve. However, many people are still confused about what it is and how it can benefit their businesses. In this podcast episode, Joeri Billast talks to Tara Fung about Web3, loyalty, and community building.
Tara Fung is the Co-Founder and CEO of Co:Create, a company that helps brands build communities using Web3 technology. In this episode, Tara explains how Web3 works, and how it can be used to create more engaged communities that are loyal to a brand. She also gives examples of brands that have already implemented Web3, such as Starbucks and Nike, and how they have benefited from it.
So, what exactly is Web3? Tara explains that it is a decentralized network that is built on blockchain technology, and is designed to give users more control over their data and digital assets. This means that users can own their data and assets, and have the ability to transfer them between platforms and applications.
Tara also explains how Web3 can be used to create more engaged communities. In traditional loyalty programs, users are given points or rewards for their purchases. However, in Web3, users can earn tokens or non-fungible tokens (NFTs) that represent ownership in a brand or community. This ownership can be transferred and sold, which creates a sense of value for the user.
One example of a brand that has implemented Web3 is Starbucks. Tara explains that Starbucks has created a loyalty program that allows users to earn digital stamps for their purchases. These stamps can be collected and redeemed for rewards, and they are owned by the user. This creates a sense of ownership and value for the user, which leads to a more engaged community.
Another example is Nike, which has acquired a Web3 native organization called Artifact. They have focused on ownership, personalization, and co-creation. Nike has allowed users to sign up and get a unique NFT that represents a Nike domain. This NFT can be customized by the user, and it is deposited in a non-custodial wallet that is owned by the user. Nike has also launched a co-creation campaign where users can submit designs and ideas for digital sneakers, and if selected, they can receive a royalty for their creations.
Tara also talks about the importance of digital identity in the context of Web3 loyalty and community building. She explains that in Web3, users can shape their identity by using different wallets and identities to reflect different aspects of themselves. Brands can also onboard their audience to Web3 by helping them create their first non-custodial wallet with just an email address. Users can then choose to tie in aspects of their identity, such as their name and socials, and use that as a way to participate in campaigns.
So, what advice does Tara have for brands that want to leverage Web3 for their community building? She advises brands to be real about their intentions and to understand that Web3 is about creating a different type of relationship with their audience. If brands are not interested in creating this type of relationship, then Web3 may not make sense for them.
Overall, Tara's insights into Web3 and community building are valuable for any brand looking to stay ahead of the curve. By leveraging Web3 technology, brands can create more engaged communities that are loyal and invested in their success.
KEY HIGHLIGHTS (see clickable version on www.cmo-stories.com)
[01:03] What led you to become the CEO and co-founder of Co:Create?
[02:42] What is Co:Create and what kind of work is your team doing?
[04:36] How do you think web3 will change the way brands approach loyalty programs and community building?
[06:19] Why is it crucial to create a diverse range of community member archetypes for building sustainable and scalable brand communities?
[13:19] Do we have an example of a brand or a business that you can give us?
[16:40] How does identity play a significant role in loyalty programs and community building in the context of Web3?
[19:16] What are the things in the Web3 space are you particularly excited about and why?
[21:18] What are the challenges and differences in building a brand or business in Web3 compared to Web2?
[23:06] What advice would you give to marketers and entrepreneurs who are looking to leverage Web3 for brand and community building?
[25:09] Where can people connect with you and learn more about your business?
"The world is shifting from user and consumer to community."
"Web3 allows you to recognize and reward contributions of your community and to give them ownership and voice that is representative of the value that they've provided."
"Web3 is about creating a different type of relationship with your audience."
"I think what I'm most excited about are those examples like Nike, where we see really big brands that are no longer dabbling, that are no longer experimenting, but that are actually saying, 'I'm fundamentally changing the relationship I have with my audience and I'm choosing to give up some level of ownership and control to them.'"
"I do think that we're going to see a lot of shifts in privacy and identity over time."
Co:Create IO (Tara Fung's company) https://www.usecocreate.io
Boys Club (Web3 community and social DAO)
Artifact (Web3 native organization acquired by Nike)
Starbucks and Nike (examples of brands applying Web3 concepts)