Customer success is now a core part of digital businesses. Due to the ongoing threat of customer churn – where consumers leapfrog between platforms – brands took a hands-on approach. From monitoring customer outcomes to tailoring their services to their client’s evolving needs, this new concept was a long way from the traditional customer service “contact us with a problem” attitude.
Except: just as Web 2.0 caused a rethink of customer service, so does Web3’s focus on decentralization and data ownership redefine how we think about customer success. No longer do consumers want to wait for a company to release a software patch or respond to their needs – they want to take control. As a result, basic services we’ve previously taken for granted, like finance, data storage, and applications, are all undergoing a complete makeover under the new Web3 paradigm.
Here’s how.
What Web3 Means for Customer Success
Web3 is a response to troubling industry trends. Data protection and ownership are critical concerns as customers grow tired of tech giants buying and selling their data and the growing threat of cybercrime. Consumers simply don’t trust traditional data security or tech giants.
That’s a problem because there is no Web3 customer success without privacy, security, and trust.
Luckily, the new internet’s core tenets target each of these core areas. Decentralized finance and the impenetrable blockchain introduce transparency and security while simultaneously reducing the risk from certain cybercrimes.
Services and businesses that embed these technologies into their practices, therefore, take the “proactive” aspect of Web3 customer success extremely seriously. Whether using smart contracts, tokenization, blockchain protocols, or decentralized applications, endless possibilities exist for brands interested in a customer-centric approach.
Web3’s Frontier Technologies
Three key aspects are changing how we think about the customer experience and redefining the concept of customer success: decentralized finance, blockchain protocols, and decentralized applications.
Let’s dive into each one:
1. Decentralized Finance (DeFi)
No sector is more vulnerable to cybercrime and data security breaches than finance. Decentralized finance, or DeFi, is a principal application of Web3’s blockchain protocols. Harnessing the power of decentralized networks and open-source software, DeFi aims to disrupt traditional financial systems.
Eliminating the need for banks and brokers allows parties to perform transactions directly through smart contracts—the result: cheaper and faster transactions and greater control, autonomy, and transparency over individual finances.
This democratization of financial access guarantees customers transparent error-free transactions. Not only does this enhance customer outcomes, but it also fosters inclusivity and trust – key factors for long-term customer satisfaction and loyalty.
2. Blockchain Protocols
Blockchain protocols, or a distributed ledger system (DLS), are at the heart of Web3. Recording and storing data on multiple nodes in a network, the system renders data tampering nigh impossible.
As consumers grow ever more jaded and distrustful, this system ensures no one – not even tech giants – can tamper with customer data. Embedded in everything from smart contracts to medical records, blockchain protocols guarantee an improved customer experience and success.
Underlying the whole of Web3, blockchain protocols build a solid foundation of trust. Through data security and immutability, this in-built transparency not only minimizes disputes but also delivers a smoother customer experience.
3. Decentralized Applications (dApps)
Decentralized apps, or dApps, rely on a blockchain network, decentralizing control and eliminating a single point of failure.
Unlike traditional centralized apps – think Facebook or Airbnb – no single authority controls all data. Putting users in charge of their data paves the way toward a user-centric experience.
dApps like Decentraland already allow users to create, experience, and monetize virtual reality content and applications with no doubts over ownership rights or data security, thanks to the Ethereum blockchain. Meanwhile, Brave Browser uses the Basic Attention Token (BAT) to reward users for viewing privacy-respecting ads, which can be used to tip their favorite content creators.
Overall, dApps promote customer success through user control and privacy. Consumers can expect ever more personalized experiences – the result: greater engagement, higher satisfaction, and a more enriching community.
Web3: Challenges and Opportunities for Businesses
Challenges for Businesses:
- Sharp Learning Curve. Web3 isn’t easy to understand. That’s partly intentional – it’s almost the mirror image of the current paradigm. Educating customers to trust and use Web3 technologies, like blockchain, dApps, and cryptocurrencies, will require time and effort.
- Regulatory Uncertainty. How governments will react to Web3 is unknown. Even existing technologies, such as cryptocurrencies and blockchain technologies, remain poorly regulated over a decade after their creation.
- System Integration. Like any new infrastructure, it needs to merge with the old. Switching to Web3 is likely to be complex and costly for established businesses.
- Security Concerns. No system is 100% secure. While the blockchain is trustworthy, the individual apps are weak links with the potential for hereto unknown vulnerabilities.
Opportunities for Businesses:
- Customer Success. Web3 empowers customers by returning data ownership and restoring trust. Businesses that embrace the shift can build new customer relationships untarnished by the history of Web 2.0.
- New Business Models. Who could have predicted social media and eCommerce stores? Just as before, DeFi, dApps, and NFTs (non-fungible tokens) promise a new array of business models revolutionizing everything from art to finance.
- Greater Security. There’s no doubt Web3 is more secure than its predecessors. It’s also less corruptible, ensuring massive conglomerates can’t sell user data to the highest bidder.
Final Thoughts
Privacy, security, and customer success are leading concerns for online businesses. Web3 is the answer. Despite the steep learning curve and regulatory uncertainties, this new paradigm heralds a revolution in digital experience and opportunities for businesses ready to evolve.
Placing consumers back in control of their data, Web3 unlocks a realm of transparency and trust, fundamentally altering how businesses interact with customers. Embracing these innovative technologies – such as DeFi, blockchain protocols, and dApps – to stay ahead in this new era.
Ready to unlock the full potential of Web3 for your business? Consult with PathSage’s Web3 experts and discover how decentralized finance, blockchain protocols, and dApps can revolutionize your customer success strategy. Embrace the future of the web and stay ahead in the decentralized world today!
Written by Irene Patrikios Clark,
Web3 Customer Success Specialist.
Sources:
https://www.weforum.org/agenda/2022/05/what-is-web3-why-care-future/
https://www.bcg.com/publications/2023/web3-customer-loyalty-program-opportunities
https://www.techtarget.com/whatis/definition/Web-30
https://uk.pcmag.com/help/138718/what-is-web3-and-how-will-it-work
https://www.simplilearn.com/tutorials/blockchain-tutorial/what-is-web-3-0