Digital fandom and brand loyalty in the web3 era

The synergy between digital fandom and brand loyalty has emerged as a critical factor in shaping the success of today’s businesses, fostered by innovative solutions such as web3. 

The online world redefined consumer interactions, and the fusion of blockchain and decentralized platforms means fans today can interact with their favorite content and brands in unprecedented ways.

But, of course, with new frontiers emerge new challenges, as well as new solutions. Read on as we explore how brands can truly test their boundaries to achieve immersive experiences their fan base will advocate for.

From passive fans to engaged advocates…potentially

Fans are not just spectators anymore. With web3, fans can now contribute to content creation, shape narratives, characters, and even storylines. This collaborative approach blurs the line between brands and their audience, fostering a sense of ownership and community.

But there’s a catch.

Digital communities and fandom nowadays are deeply connected to specific platforms, where fans build up status to impress peers. This creates challenges on two fronts: 1. The limited ability to transfer this fan status and recognition makes it difficult for creators and artists to move their fan base toward channels that might be more profitable, or help in their public exposure.

2. New digital platforms face difficulties attracting and retaining users due to strong fan loyalty to existing ecosystems. Take, for example, Meta’s Threads, which actually performed poorly in terms of engagement and growth after the first weeks of hype, as seen by the 15 celebrities who first leveraged the platform and whose activity eventually decreased instead.

There are, of course, virtuous attempts whose aims are to break down traditional silos, build interoperable collaborations, and grow fandom in an innovative yet seamless way. The partnership between Sequence, Paris Basketball, and Polygon, for example, aims to deepen fan connections by offering exclusive experiences and merchandise through digital collectibles. This successful and dynamic collaboration has reshaped sports fandom, enabling immersive interactions between fans and teams.

Web3 loyalty is in its infancy

More and more companies are launching targeted blockchain-powered campaigns, from apparel and fashion to events and commerce, hoping to enhance their customer experiences and increase retention.

But most of them have stopped innovating and only ventured beyond simple collectible drops. Not due to laziness, but rather a poor understanding of and integration with web3 technology, or traditional approaches to business development and marketing.

But what if all this could change? For example, Sequence’s Sam Barberie envisioned an imaginary Star Wars-themed web3 campaign by Disney: a digital collection that not only offers access to unique fan collectibles but also leverages these collectibles to open a whole new universe of experiences, from personalized streaming to unique benefits in theme parks and e-commerce stores. 

By using the blockchain, Disney can not only free fans from a single platform, but connect multiple platforms and use cases across all of its core business flywheel, bringing in net new revenue, increased consumer engagement, and cross-pollination of its verticals. 

Blockchain and web3 today can open up limitless opportunities for brands seeking to engage and retain their customers. However, organizations must be willing to step into uncharted territories and rely on infrastructure solutions that can be trusted and well-integrated within the ecosystem.

Digital fandom and brand loyalty using web3: final considerations

Web3 does provide the gateway to an ever-growing ecosystem of experiences that could help companies stand out from the crowd, but those entering the space should do so after several considerations, including:

• What is the vision I am trying to achieve by leveraging blockchain and web3? Most importantly, how will it help my core business? 

• Which content and experiences would be the most engaging and rewarding for fans and customers? How do I deliver real value to them?

• How do I enrich fan and customer experiences without adding complexity?

• Which are the appropriate technology and ecosystem partners to build these experiences with?

These will help frame strategies and execution for future fandom and loyalty programs, going beyond simple short-term onboarding and looking instead at actual long-term growth.