Although tech enterprises are usually the companies that have a stereotype of hoarding consumer data, they’re far from the only culprit. In fact, one of the largest holders of digital data is a rather unsuspecting industry: retail. In the age of data-driven insights, every piece of customer information that a business can gain from its audience can result in higher returns and an improved bottom line.
From email addresses and phone numbers to preferred brands and typical buying habits, everything is available for retail stores to find data on. Yet, for many customers, this has turned into a point of contention. Around 79% of Americans feel they have no control over their own data. And, considering they don’t gain any reward for companies skimming their data, it’s not hard to see why they’re tired of data consumption.
This trend of retail stores using customer data has continued without fail for the past few decades. Yet, in the world of blockchain, companies are finally releasing alternative options. Web 3 technology prioritizes the user experience, giving each full control over their own data.
In this article, we’ll discuss the rise of Web 3 retail businesses, demonstrating how companies like Shping are paving the way toward a future where customers are in control – and even directly rewarded – for their personal data.
The rise of first-party data
The current landscape of Web 2 retail markets operates as a one-way street, where companies harvest and leverage consumer data for their own profit. Whether it’s tailoring promotions to consumer preferences or amassing data for personalized marketing, the focus remains on corporate gains. However, this model overlooks the needs of the customers themselves. Web3 seeks to disrupt this paradigm by prioritizing user-centric principles as the cornerstone of its ecosystem.
In Web3, businesses are committed to placing users at the forefront of product development and acknowledging their invaluable role in company success. Recognizing that active consumer participation is essential for thriving enterprises, Web3 endeavors to share profits with users, acknowledging their contributions.
For instance, the Web3 loyalty and rewards program, Shping, exemplifies this ethos by offering users rewards for their shopping activities. By simply uploading receipts, users instantly earn loyalty rewards from affiliated brands. Moreover, when users provide product reviews, they receive direct rewards from the brands, fostering a symbiotic relationship and eliminating intermediaries.
This shift towards a more equitable exchange benefits both consumers and brands. Through Shping’s platform, brands can enhance their engagement with customers by showcasing their products and offering improved rewards. This fosters a stronger connection between customers and brands, ultimately enhancing the shopping experience.
Additionally, the use of cryptocurrencies within Web3 brands, such as Shping’s native ERC-20 token, revolutionizes the rewards system. Users can seamlessly earn and cash out their tokens, thanks to partnerships with leading exchanges like Coinbase. This integration into users’ daily routines expands opportunities for shoppers and strengthens brand loyalty in the evolving retail landscape.
This strategy represents the future of retail shopping, moving away from unfair relationships that Web2 systems establish.
Final Thoughts
The network of shopping retailers spans across the globe, with this industry marking itself as one of the most dynamic in history. At the forefront of innovation and data-first strategies, retail giants have long been collecting personal data. These so-called data brokers gain everything from this deal, while the customer rarely sees a benefit.
The Web 3 system directly challenges this dynamic, striking a new balance between customer and store that helps to greatly increase the reward for customers. Blockchain companies are launching of entire retail ecosystems that thrive on first-party data and give more power to the consumer.
Over the next few years, as blockchain systems continue to expand, we could see a radical shift in buying habits in relation to customers partnering with the Web 2 or Web 3 spheres.