Exploring Web 3.0’s Impact on Consumer Brands: Success Stories and Lessons Learned
In the rapidly evolving landscape of consumer engagement, “It costs five times more to acquire a new customer than to retain an existing one” . Brands are increasingly recognizing that enhancing customer retention by just 5% can yield a profit boost of 25%–95%. Moreover, according to a blog posted by Ashi Bhat, the success rate of selling to a customer you already have is 60%–70%, while the success rate of selling to a new customer is 5%–20% (Outbound Engine, 2022). A compelling reason to innovate and engage more effectively. Enter Web 3.0 technologies: a frontier where both large and small consumer brands are not only increasing consumer growth and revenue but also crafting immersive, engaging experiences that resonate deeply with their audience.
This shift is particularly pivotal as we consider the emerging influence of Gen Z, who already spend 15% of their discretionary income in the metaverse — a figure expected to rise to 20% within the next five years (Vice Media Group, 2022). Their impact extends beyond their own wallets, as they influence 80% of their parents’ purchasing decisions, making them a key demographic for brands aiming to drive change and create meaningful connections (Mccrindle,2019). Furthermore, interest in these Web 3.0-driven experiences is not limited to Gen Z. According to PYMNT Intelligence Millennials and Gen Z alike show overwhelming enthusiasm, with 75% and 78% respectively, eager for the additional features these technologies offer.
In this article, we’ll explore how brands are leveraging Web 3.0 technologies to stay ahead of the curve, driving growth and fostering deeper connections with their consumers in an increasingly digital world. Along with challenges and failures faced by brands in adopting web 3.0 technologies. The first wave of Web 3.0 adoption saw NFTs lead the charge, but now, the focus is shifting towards gamification, metaverse experiences, rewards, and digital wallets as the next frontier in consumer engagement.
Nike X RTFKT
Nike acquired RTFKT Studios in 2021, reportedly for over $1 billion, to boost its Web 3.0 presence. Since then, Nike has generated $185 million in NFT sales and $1.3 billion in secondary market volume. The “Cryptokicks” collection of 20,000 NFT sneakers expanded Nike’s digital community by 200,000 members. This initiative blends physical and digital products, allowing customers to claim digital versions of physical shoes, driving both consumer engagement and new revenue streams in the digital collectibles market.
Adidas X Bored Ape Yacht Club
Adidas expanded its Web 3.0 presence by collaborating with Bored Ape Yacht Club (BAYC) to launch the “Into the Metaverse” NFT collection, generating over $23 million within hours and significantly boosting brand visibility. This project connected Adidas with both the digital and physical worlds, fostering a strong community of digital asset holders. Continuing its Web3 journey, Adidas in April 2024 partnered with the Solana-based app Stepn to release the “Stepn x Adidas Genesis Sneaker Collection,” featuring 1,000 exclusive NFT sneakers, further integrating lifestyle rewards and blockchain technology into its brand strategy.
Adidas expanded into the metaverse by creating digital spaces in platforms like The Sandbox, where users can engage with the brand, purchase digital clothing for avatars, and participate in exclusive events. This move helps Adidas connect with a younger, digital-native audience, enhancing its brand presence in the virtual world and generating new revenue streams through digital goods.
Coca-Cola X Decentraland
Coca-Cola embraced Web 3.0 technologies by hosting a virtual event in Decentraland to celebrate International Friendship Day in 2021, where they offered branded virtual merchandise and NFTs to participants. This initiative attracted over 10,000 participants, significantly boosting Coca-Cola’s brand engagement with a younger, tech-savvy audience and solidifying its presence in the virtual world. This event exemplifies how brands are leveraging virtual spaces and digital assets to connect with new demographics and enhance their brand visibility.
Pepsi X Mic Drop
Pepsi launched the “Mic Drop” NFT collection, featuring 1,893 unique digital microphones, to celebrate its musical heritage and engage with the NFT community. The collection sold out quickly, raising significant funds for charity while boosting brand loyalty among digital asset enthusiasts. This initiative highlights how major consumer brands are using Web 3.0 technologies to connect with new audiences, increase revenue, and maintain relevance in the evolving digital landscape.
It’s notable that major competitor brands like Pepsi, Coca-Cola, Adidas, and Nike all entered the NFT space around the same time in 2021. However, the trend has evolved, and consumers now seek more interactive, gamified experiences while engaging with brands, along with rewards stored in digital wallets. Let’s explore how these brands are adapting to this shift by integrating gamification, metaverse engagement, and digital incentives to meet the current demands of their audiences.
Starbucks X Odyssey Program
Starbucks launched the Odyssey Program in DECEMBER 2022, a blockchain-based loyalty system that integrates NFTs to offer digital rewards. These rewards can be traded or redeemed within a broader ecosystem, providing a more engaging and flexible loyalty experience. This initiative enhances customer retention and lifetime value by offering unique experiences beyond traditional NFTs.
According to 3mint, although there was no cost to earn Starbucks Odyssey Journey Stamps, the highest secondary market sale reached over $1,900, with an average sales price of $1,006 and a floor price of $845. The initial 2,000-item collection sold out in 18 minutes, generating $899k from primary and secondary sales. However, the subsequent collection, “The First Store Collection Stamp,” saw less success, with only 4,579 out of 5,000 Stamps sold. The total secondary market trading value for the first collection was $247,572.36.
However, even though Starbucks integrated a reward-based gamification method with NFTs. The major reasons for the failure of Starbucks Odyssey include limited scalability, as it only attracted 58,000 participants, which is just 0.009% of the company’s Rewards community (brand3index). Additionally, the program faced user experience challenges, particularly with the "games" and community engagement aspects. The closed ecosystem and lack of integration with other online activities, coupled with the failure to offer unique value beyond traditional CRM programs, also contributed. Strategic shifts by partners and economic pressures further led to its discontinuation.
Gucci X Sandbox
Gucci has been a leader in digital innovation, launching its first NFT in May 2021 and creating the “Gucci Garden” experience on Roblox to celebrate its 100th anniversary, which attracted 20 million visitors in two weeks (ISM,2021). Gucci also developed digital experiences like the ‘Good Game’ ecosystem and a virtual sneaker gallery. In late 2022, Gucci expanded into The Sandbox, offering digital clothing and branded events, targeting a younger, digital-native audience. Ex-Gucci exec Robert Triefus emphasized the growing importance of engaging with tech-savvy youth in digital spaces (Lin,2023).
Louis Vuitton X Aura Blockchain
Louis Vuitton, through LVMH, developed the AURA blockchain platform to enhance the traceability and authenticity of luxury goods. AURA allows customers to verify the entire history of their products, from production to sale, providing an immutable record that combats counterfeiting and builds consumer trust. Additionally, by ensuring the authenticity and ethical sourcing of materials, AURA supports sustainability efforts, as it encourages more responsible production practices, reducing the environmental impact associated with counterfeit goods and promoting transparency in the supply chain.
Australian Open X Decentraland
In 2022, the Australian Open (AO) launched an innovative Web3 initiative, including over 6,000 NFTs linked to specific court plots, providing owners with exclusive benefits. They also created a metaverse experience via Decentraland, allowing fans to explore the AO virtually and engage in unique challenges. According to a story covered by Ashi Bhat, this initiative generated over $5.5 million in secondary sales, attracted a 7k-strong brand community and contributed to a 20% increase in broadcast hours, with 746 million hours viewed globally in 2022.
Ridley Plummer, Metaverse Manager at the Australian Open, explained that the AO utilized the metaverse to offer fans a personalized experience. Participants could explore various areas like the grand slam oval, practice village, and even behind-the-scenes locations like the press conference room and gym, places typically inaccessible in real life.
Metamask X Mastercard
In 2024, MetaMask and Mastercard launched a pilot for a debit card that connects directly to self-custody crypto wallets, enabling users to spend cryptocurrencies like Ethereum and Bitcoin at any Mastercard-accepting merchant. Initially available in the U.K. and Europe, the card leverages MetaMask’s 30 million active users and benefits from Mastercard’s security and regulatory compliance, potentially boosting user growth and transaction volumes.
Conclusion:
As brands navigate the evolving landscape of consumer engagement, the integration of Web 3.0 technologies has proven essential for staying competitive. From Nike and Adidas leveraging NFTs to enhance brand loyalty, to Coca-Cola and Gucci creating immersive virtual experiences, these innovations highlight the potential for both customer retention and revenue growth. However, not all attempts have succeeded, as seen with Starbucks Odyssey. The shift toward gamification, metaverse experiences, and digital rewards marks the next frontier.
This is part 1; stay tuned for part 2, where we’ll explore cost-effective Web 3.0 tools for small and medium businesses.
Written by: Arpit Jain
Edited By: Sarah Abuagela
Sources: Ashi Bhat, Outbound Engine, Vice Media Group, Edge Middle East,3mint, brand3index, ISM, (Metaverse and Brand: A Study of Luxury Brand Digital Marketing Strategy — Taking Gucci as An Example) Jiayu Liu,
