Web3 and NFT were all the rage around this time last year, but in light of recent events, there is growing skepticism around web3, crypto, and blockchain in general. As a beauty marketer turned brand strategist who has spent the last 12 months working on web3, I am confident that these emerging technologies are here to stay, primarily because they have so much power to create positive change for brands and consumers.

Most of the major cosmetics companies have already started exploring the potential of web3, blockchain and AI technology to improve their operations and offerings. From improved marketing and customer relationship management to greater sustainability and transparency, these web3 and blockchain technologies offer a variety of opportunities for beauty brands to build interest, drive sales, and cultivate stronger relationships with the clients.

Despite these “test and learn” activations, for many of my colleagues in the beauty industry, the main obstacle to web3 adoption, beyond the skepticism caused by scandals and rug pull-ups, is how this technology can make a significant impact within their organizations on a daily basis. “Not just as a one-time piece of public relations. The reality is that this technology is so nascent that it is still too early to implement it at scale.

But there are things that brands, especially smaller and nimble ones, can do in the short term to capitalize on this innovation, which is really just a fundamental new layer of technology that can better enable things that brands and marketers already have. they are trying to do. (conversion, retention, efficiency, transparency, etc.)

Here I’ll explore some of the less-hyped and more practical applications of the technology, so you, the marketer, can really try them out. And remember, you don’t know everything that goes on under the hood of your car, so you don’t need to know exactly how the blockchain works to use it.

So, you jumped into the metaverse headfirst

In recent years, we’ve seen a surge of beauty brands flocking to the metaverse, hoping to capitalize on the buzz surrounding web3 technology. Estée Lauder sponsored Metaverse Fashion Week. L’Oréal even partnered with Meta to launch a web3 accelerator focused on the beauty metaverse. However, this rush to join the metaverse may be misguided.

Statistics show that traffic in metaverse lands like the Sandbox and Decentraland is low, with less than 100 visitors per day, and most virtual real estate parcels go unused. This suggests that consumer interest in the metaverse as a platform for beauty brands may not be as high as some companies believe. Furthermore, it highlights the need for a more thoughtful approach to the development and adoption of web3 technology. Rather than simply jumping on the latest trend, companies should prioritize finding solutions that truly meet the needs of both their business and their consumers.

If not the metaverse, then what?

Here it is where it gets interesting. When we rule out the metaverse as the first approach, many possibilities open up. The only way to reduce those chances is to align your goals with the relevant tactic. Marketers are always looking for new levers to pull, and there are relevant web3 applications throughout the conversion funnel.

Start by partnering

You don’t need to integrate blockchain into your strategy to take advantage of web3. Associations are an easy way to generate interest and recruiting by leveraging a community aligned with the mission and values. Take BFF, an NFT project launched by a group of leading women, including Jaime Schmidt, founder of Schmidt’s Deodorant, which boasts a community of over 100,000 members. They recently launched a “Perks” store where their NFT holders can get access to products at a reduced price. Partnering with communities like this is one way for brands to safely test the waters with hyperactive and relevant audiences, without significant investment in technology.

Mobilize Power Users to Boost Your Product Portfolio

You may have heard the acronym “DAO”: Decentralized Autonomous Organization. Reminder: Don’t get hung up on jargon. As a brand, you have power users. Many of these users wish to influence product decisions. Imagine if you could organize them asynchronously so they could start ideating quickly and then iterate on your behalf because they knew they would get a piece of the profit. That is a DAO. Yes, there are important nuances and some legalities, but if we don’t get hung up on those details, a DAO is a great incubator/innovation arm of an organization.

NYX launched a DAO earlier this year to encourage digital artists to create 3D-inspired looks for its products; another exciting possibility to involve your community in co-creation.

Automate digital benefits

Many brands have ventured into launching a digital twin for physical goods. The problem is that the brand is then responsible for maintaining the relationship with the owner of that digital collectible; otherwise, it loses value. Why keep it if there’s nothing to gain, extra perks or exclusive rewards? Many brands aren’t ready for that kind of commitment and launch digital twins in the form of NFTs without realizing the long-term commitment they made and then promptly abandoned.

But there are tools that can manage this whole process if you recognize the requirements. For example, the Geneva app (nicknamed Discord by “hot people” and used by brands like Topicals) is helping brands create NFTs that enable closed experiences and exclusive benefits; This is just one of many examples.

Throwing NFT into an abyss is pointless. The whole benefit of an NFT is that it is a way to connect regularly and reward the holder, creating value for him and the holder so that if they ever decide to sell it, both can win.