Reward consumer feedback with Web3 tech, Multicoin’s Vujicic says
“We are doing labor all the time for our brands and then we are paying them for that privilege”
JMiks/Shutterstock modified by Blockworks
Consumers don’t often get the credit they deserve, says Aleksija Vujicic.
She cites the example of a survey platform created some years ago by Starbucks to gather ideas from customers. Some of the best suggestions spawned highly popular products like cake pops and caramel frappuccinos.
“Some little consumer made that in their home and then sent it in and Starbucks made it.”
“Do you think they’re getting any benefit from the fact that now caramel frappuccinos are sold all over the world?”
“Obviously not. But should they? Yes.”
The investment associate at Multicoin Capital spoke to Chase Chapman on the On the Other Side podcast (Spotify / Apple) about the possibilities of improving relationships between consumers and companies through the implementation of Web3 technology.
Giving customers credit doesn’t necessarily have to involve monetary compensation, she notes. “There’s so many ways to reward consumers” besides revenue share, she says.
“But, for goodness sake, they should get something.”
That’s labor
Vujicic gives another example with a Latinx haircare brand, Ceremonia, which sent products to their community for feedback before launching them to the market.
“That’s labor.”
Ceremonia rewarded those who provided feedback through free products and rewards, she admits, “but that is labor.”
“We are doing labor all the time for our brands, and then we are paying them for that privilege.”
Digital tokens would enable companies to attribute social recognition “through the recording of provenance and also the origination point of ideas,” she says, as well as to deliver value back to those who own the ideas.
Any goods sold on the internet could be tokenized, she says, providing provenance and compensation to originators of the products.
Three levels of co-creation
Co-creation under the Web3 paradigm takes place at three levels, Vujicic says: individual, cohort and community.
An individual creates a TikTok, for example, that is tokenized.
“I remix your TikTok. I added dance. Now it’s almost like I’ve added a layer to your original product, but both of those layers should exist in the next iteration of the product that’s sold.”
Revenue share and social accreditation can then be split according to the contributing entities. “We’re able to track who contributed to the idea and then who sold it and who bought it and how everything flowed through that.”
Multiple people in a small selected group could work together as a cohort to create products, she continues. “Maybe it’s a collection of clothing.”
“Twenty people come together. They do a clothing collection, maybe in partnership with the Row, for example.”
“You get to see in every piece from the Row who was involved, what they contributed to it,” she explains. “Every time one of those things are sold, they get a small piece of financial value.”
The third and most decentralized form of co-creation is on a grander scale, with a community of co-creators. “In the future, we will have brands that are fully community-owned. Everything is, to a certain extent, voted upon. And then that community receives value in return.”
It’s “a spectrum of decentralization,” she says.
Vujicic argues that rewarding consumers for contributions will create happier customers that can be retained for the long term.
A dollar from a new customer, Vujicic says, isn’t as valuable as the second dollar from an already existing consumer. “Co-creation helps you get that second dollar and re-engage your community.”
People want to engage directly with brands, she says. “Give them new ways to do that, and then recognize them for doing so, and you create a higher value consumer in the end.”
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