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Imagine that you are a small farmer in the countryside of Brazil, who lives in a small town where there is only one bank branch - a credit cooperative that serves small rural producers. In fact, no big, traditional bank has chosen to be in their little town, because it's too small and it didn't make sense for them to be.

Well, a few years ago, before digitization, you were mostly loyal to traditional companies even if they had bad service, or charged higher fees, because your alternative was expensive: it was to take the car, if moving to the nearest big city would involve spending time and money, and most likely you would not choose to face these costs. These costs, in economic theory are called switching costs, and are the costs related to you "switching" your supplier. In the pre-digital world they were pretty high, weren't they?

What about these days, with the Digital world? Well, if I don't like the service or find the fees too high, with one click you can simply open a new bank account with a competitor - that is, the switching costs have practically dropped to zero.

Why is that possible? Well, thanks to the fact that digitization has introduced infinite access to information and fostered greater competition between companies, it has lowered switching costs, and this has obviously greatly empowered the customer.

But even so, we can assertively say that the client does not have all of his problems solved through Digital: are there problems related to data privacy, that is, how to control what is done with data? Trust-related issues, ie how do I trust the company and everything it tells me? Problems limited to product experimentation limited to the physical world (after all, you can't live with infinite situations of using the product or service you are looking to buy), and so on.

What to do then? How can we improve the customer experience and achieve even greater customer-centricity in the future? Well, this is something possible in the world of Web3, as we'll learn in this article.

When we take a look at the big differences between Web2 and Web3, Web2, which is the current iteration of the Internet, is considerable application-centric. But we can consider Web3 to be really user-centric, due to the decentralization and immersive characteristics of its technologies.

For starters, on Web3 end users will regain complete ownership and control of their data and enjoy the security of encryption. This means that they will be able to choose whether and when information about them can be shared and/or used with or by advertisers, marketers, researchers, etc. One way to do this is with simple and intuitive interfaces that will allow users to understand what information they are sharing with companies: this has the potential to give them full control over personalization and even get paid for using their information. They could, for example, earn micropayments for survey responses. Or even get paid with tokens for consuming or sharing content. With that, we have already realized that a great point and advantage for the customer in the world of Web3, is greater privacy and absolute control of their data, and in addition to all that, another advantage is that you can get hyper personalization through your data.

Let's think about it: today, if I'm an individual, I'm doing shopping, I have to move from one store to another, just like if I'm a B2B company that is buying raw materials around the world, I need to order many proposals, in different countries, with different regulations, and different taxes. This is too complicated and boring, which creates a lot of friction. With online and e-commerce, this friction has already diminished, but in addition, with the world of Web3, this will be resolved with the concept of interoperability. What does that mean? Through interoperability, users take the value they created within one platform and bring it to another platform and vice versa seamlessly. The truth is, this concept isn't 100% developed yet, because in theory, if you buy a digital version of a Zara dress on Roblox (a part of the metaverse game), you probably won't be able to use it in, say, in the Horizon metaverse. Goal. That's because the metaverse, for now, is a collection of separate metaverses and not one big open platform. This means that consumers can almost never move digital goods from one virtual world to another. This is extremely inconvenient, but we almost never think about it because it's always been that way.

But Web3 has the power to change that. All your information and your belongings will be centralized in your own “identity” – be it a crypto wallet or a Self-sovereign identity (SSI) – as tokens. What you own will be connected with your identity rather than a platform. Which will allow you to take everything with you as you hop from one app or ecosystem to another. This also has the potential to have a huge impact on the interoperability between IoT devices in general and those in smart homes and smart cities in particular - who will possibly already know you: wouldn't it be nice to arrive at your favorite hotel and the lights are already on? pre-programmed the way you like it, with the background music you like? In other words, we also realized that this interoperability, which removes all friction, all friction between one experience and another, is one of the great benefits of Web3.

In addition, it has another benefit that is related to the relationships we have with companies, which have become less transactional but more focused on community and where gains are more shared. One example is how the band Kings of Leon released an album as an NFT and their tokens – including a limited amount of unique-looking “golden tickets” – unlock special perks like limited-edition vinyl and front-row seats to future shows.

The truth is that most current loyalty systems – such as airline miles programs – are completely unbalanced: more benefits go to the company than to the customer. NFTs will be much more engaging with customers, who will become part of the journey. If I, as a frequent flyer, have an NFT stake in a company, we will both have shared rather than opposing interests. In other words: if the company is doing well, the value of the NFT will go up and then I will do well too. And so I, as a customer, will benefit when the brand performs better and, therefore, I will become its ambassador. In fact, the customer becomes an emotional shareholder. It is with this sense of shared value, and of community more than a customer, it is evident that this is yet another great benefit that Web3 brings to its customer.

Now, think about the trust issue we mentioned earlier, and let's get back to the farmer example we gave in Chapter 2: blockchain substitutes the need for trust and for a middleman. as an example, consider a farmer growing corn in a village. To sell the corn, the farmer can set up a stall and sell the corn directly to other villagers – the farmer is paid immediately so he knows he has received payment for the corn and the villager, who puts the corn directly into his basket, knows he has received it. the corn. There is little need for trust as the transaction is immediate in both time and place.

If, however, we change the time and space variables slightly, then the need for trust increases – if the villager says he will pay the following week, the farmer must trust that the villager will pay later. Likewise, if the villager pays immediately but asks the farmer to deliver the corn to his barn, the villager must trust the farmer to deliver.

As the sophistication of a transaction grows, so that the sale of corn takes place in different countries, the need for trust increases. Ironically, at the same time, as the need for trust increases, the natural presence of trust decreases – villagers who have known each other since birth are more likely to trust each other than strangers living in separate countries.

Faced with this problem, the solution we traditionally rely on is the intermediary - I may not trust you and you may not trust me, but if we both trust a third person, we can use this shared trust in the intermediary to facilitate our transaction. Examples of such intermediaries include banks, international credit card companies and escrow agents. And on Web3? Remember the role blockchain plays? What Blockchain does is augment and possibly even replace the role of the intermediary, creating trust directly between individuals through the use of computer software. Do you realize here then that blockchain fundamentally improves the customer experience through the guarantee, transparent and immutable, of trust?

And lastly, is the role of experiences: Web3 – especially when combined with the metaverse – has the potential to enhance user experiences in ways that make them more fun, more relevant, more community-oriented and more immersive. An example? Rexona hosted the first marathon of the metaverse, giving users the chance to customize their avatar with adaptable wearables such as wheelchairs.

In other words, in general, we can list 5 of the main benefits for the customer in the world of Web3:

-Data privacy and ownership;

Friction reduction through Interoperability;

Less transactional relationships across communities;

100% transparency and trust;

Immersive and limitless experiences.

I want you to think about this as an exercise.

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Com mais de 200 palestras online e offline em 2021 para clientes no Brasil, América Latina, Estados Unidos e Europa, o Andrea é hoje um dos palestrantes sobre Transformação Digital, Liderança, Inovação e Soft Skills mais requisitados a nível nacional e internacional. Ele já foi diretor do Tinder na América Latina por 5 anos, e Chief Digital Officer na L’Oréal, e hoje é também escritor best-seller e professor do MBA Executivo da Fundação Dom Cabral

With more than 200 keynotes delivered (online and offline) in 2021 to clients across Brazil, Latin America, the United States and Europe, Andrea is today one of the most requested speakers on Digital Transformation, Leadership, Innovation and Soft Skills in Brazil and globally. He has been the head of Tinder in Latin America for 5 years, and Chief Digital Officer at L’Oréal. Today he is also a best-selling author, and a professor at the Executive MBA at Fundação Dom Cabral.

Con más de 150 conferencias online y offline en 2022 para clientes en Brasil, América Latina, Estados Unidos y Europa, Andrea es hoy una de los conferencistas más solicitados sobre Transformación Digital, Liderazgo, Innovación y Soft Skills a nivel nacional e internacional. Fue director de Tinder en América Latina durante 5 años y Chief Digital Officer de L’Oréal Brasil. Es autor de best-sellers y profesor del Executive MBA de La Fundación Dom Cabral, una de las instituciones de mayor prestigio en Brasil.

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Andrea Iorio · 2021 © Todos os direitos reservados.

Andrea Iorio · 2021 © All Rights Reserved.

Andrea Iorio · 2021 © Todos los derechos reservados.