Following our last article on the state of Web3 and Paris Blockchain week, we wanted to take a more in-depth look at one of the emerging strategies luxury brands are thinking about for their projects: how do you address your customers in Web3? First, we’ll look at it through the lens of Web2, then examine how it’s different in Web3 and include some insight on Henessy’s latest project. We’ll end with a glimpse at the opportunities and hurdles that could lie ahead. Let’s get into it.
The Importance of CRM and The Individual Customer in Web2
There are many types of luxury consumer. Some demand exclusive access, white glove service and 24-hour comms channels. Others want the quality, the craftsmanship and the sophistication. They want the WOW. Others still demand versatility: a little bit of this, a little bit of that. Luxury is a dream, a promise of something different. Dare I say magical. But it always comes back to the individual ‘you’, not the plural. Not the ‘vous’.
And that’s because luxury brands have direct access to such a vast sea of customer information. Name, address, email, age, likes, dislikes. Does CRM know your clients better than they know themself? Ask your marketing department. But when a luxury brand uses CRM effectively, they can tailor and funnel offers, discounts, exclusive experience, newsletters, emails and adverts straight to the individual. Indeed, much of the marketing in high-end luxury is directed specifically to VICs (Very Important Clients). By name.
Speaking To The Community: Why is Web3 Different?
Web3 is different. Brands increasingly have to tailor experiences and content to communities. Successful brands and projects build their audience before even launching a product.
Welcome to the paradox of blockchain: it’s both visible and invisible. Bear with me as I explain. When you buy a digital product, anyone with an internet connection can ‘see’ the transaction. Anyone can ‘see’ who sent the money and where they sent it; who created the digital asset, and who owns it. The tricky part? The ‘who’ is really a ‘where’ and exists only on the blockchain. I know, that sounds like science fiction. It isn’t.
Unless the individual decides to identify themselves, brands don’t have more information than a long string of letters and numbers (the identifier to a Web3 wallet – essentially an alternative to email to ‘log in’ in Web3). Consumers can choose to remain invisible. Now, they can also choose to identify themselves. Either because they want to, or they have a relationship with the brand or they’re famous in the space. A luxury brand, with its clear and transparent identity from the start, faces a clear shift in the dynamic. The customer has never been so powerful.
A particularity of Web3 communities – and fortunately for brands – is they behave as an individual. For an analogy, think of those shoals of fish in animal documentaries, flashing and moving as one entity when a shark is on the prowl. Web3 communities have a well defined personality, likes, experiences and common ground. So, how do luxury brands address luxury customers with this in mind? Let’s get into the weeds of Hennesy’s Web3 project, H3NSY.
How Is Hennessy Harnessing The Web3 Community Marketing Approach?
A re-cap for those who aren’t familiar with it, H3NSY is a Web3 platform where Hennessy “invites global creators and communities to blend and connect over a shared pursuit of innovation, collaboration and culture.” So far, so good. Its most successful initiative is Cafe 11, “a bold new take on the free-thinking café society of 1920s Paris, curating intimate cultural experiences at a series of unusual locations, designed to surprise and delight our members.” The whole project was built in partnership with social media platform, Friends with Benefits.
As well exclusive Discord channels and its own Twitter account, Hennessy addresses its consumers with digital art, cultural events and live experiences. This includes Art Basel Miami meetups, original commemorative artwork by renowned artist John P. Dessereau, and early access to Café 11’s series of curated live and digital experiences. If you think about it, everyone who joins Café 11 community will have similar profiles. Luxury brands don’t need to ‘know’ who the individuals are. By speaking and curating marketing to the community, they speak to everyone individually.
It’s very clever. But there is a challenge to this new direct-to-community marketing. It comes in the form of KYC (Know Your Customer) and legislation from regulators. Although by no means certain, there is the possibility that all digital assets will come under the same umbrella and any brands selling them will need to collect KYCs.
As individuals align themselves with the DNA of the communities and brands that correspond most with their personal beliefs and aspirations. Direct-to-community marketing will play a hugely vital role in how luxury brands address their consumers in Web3.
