At its core, Web3 — powered by blockchain technology — is all about users owning their data, being properly compensated for it, and becoming part of the economic value chain on the web. Advertisers who wish to maximize their impact in Web3 need to embrace these concepts and implement new strategies that enable consumers to clearly understand how their data will be used should they give their consent and share it.
These days, everyone knows how valuable data is. Since most of us aren’t keen on giving away something that’s valuable for free, advertisers need to offer consumers rewards — tokenized rewards, in particular — for opting in and giving their permission. Luckily, with the right ad tech solutions in place, creating this opt-in value exchange can be a seamless, turnkey process.
If advertisers want to succeed in a world that’s increasingly driven by permission, they need to change the way they interact with consumers for two key reasons. First, consumers are more and more concerned about how businesses handle their data; a recent Cisco study, for example, found that 86 percent of consumers care about their personal data and want more control over it. Second, government regulations — including Europe’s GDPR, China’s PIPL and California’s CCPA — are forcing advertisers’ hands. As additional privacy laws continue to work their way through the legislative process, it’s safe to say the halcyon days of freely harvesting reams of consumer data are coming to an end.
And that’s actually a great thing.
Strong relationships — with spouses, friends and even brands — are built on trust. We trust Amazon to send items to our homes quickly and cost-effectively, we trust Uber to connect us with drivers in just a few taps, and we trust Home Depot to sell us the high-quality tools and supplies we need for home improvement projects.
If advertisers want to build trusting relationships with consumers and thrive in the permission-first era of Web3 advertising, they need to embrace rewards marketing. By asking consumers for their permission to collect data and rewarding them when they choose to do so, advertisers can gather coveted first-party data to deliver relevant, personalized content, all while strengthening trust and driving customer loyalty.
Over the last decade, consumers have evolved from being mostly carefree about how their personal data is used to becoming incredibly scrupulous about it. In fact, one recent study found that 71 percent of consumers worry about how brands manage and leverage their personal data. This makes perfect sense, as we’ve all heard countless tales of advertisers collecting data in ill-gotten ways and using it to make money.
The good news is that these deceptive practices have created a once-in-a-generation opportunity for forward-thinking advertisers that are ready to flip the script. Early adopters of permission marketing will begin to shatter these perceptions by operating in an open, transparent manner and telling consumers exactly what data will be collected and how it will be used if they consent to share it.
Simply put, these innovative advertisers will be able to set the gold standard in Web3 advertising while building trust and loyalty across their customer base — much to the chagrin of their competitors, who will ultimately be forced to follow suit.
One recent report found that 85 percent of consumers are loyal to brands that protect their data. And that’s a big deal: While loyal customers might only account for 15 percent of an organization’s customer base, they can be responsible for as much as 70 percent of all revenue. At the same time, loyal customers are also more likely to continue supporting the companies they love, which helps brands increase customer retention. Since a 5 percent increase in retention can translate into a whopping 95 percent increase in profits, organizations need to do everything they can to create loyal customers.
For advertisers, the path forward is clear: Embrace rewards marketing, be open and honest, and always ask for permission. With the right approach, the holy grail of first-party data from an army of loyal customers will be firmly within your reach.
This article originally appeared on Media Village and was guest authored by Permission.io founder Charlie Silver. Click Here to view the full article.