Futureproof 2023, Part 1: Four Ways to Fuel Brand Growth

Critical shifts in digital culture will make 2023 a foundational year for the evolution of social, web3 and e-commerce. 

Brands that optimize their digital strategy now for the near future, have an opportunity to leapfrog competitors who are stuck in the old way of doing things. The mantra for digital success, especially in Web3 needs to be customer-centric, value-focused and culturally relevant, without these elements brands run the risk of appearing out of touch and not meeting their goals. Unfortunately, this is exactly what recently happened with Porsche’s NFT drop. If it can happen to a world-class brand like that, all brands need to take heed. 

Specifically, shifts we see happening in 2023 include NFTs evolving into loyalty drivers, AI experiencing mass adoption, subcultures becoming the new demographics, and the rise of live-streaming. All represent opportunities for brands to lead the near-future.
 

NFTs evolve into loyalty drivers

Use cases for NFTs are maturing in ways that brands need to pay attention to. It’s becoming less about aesthetics and more about actions. The value of what NFTs unlock is what fuels consumer adoption. More than 64% of NFTs today have two or more utilities and they trade at higher values and faster rates than those with fewer. Future-focused brands like Starbucks understand this and are exploring ways to use NFTs to deliver added value and connect with their best customers. 

With Odyssey, Starbucks’ is launching a blockchain-based loyalty program for its 29 million Rewards members, no crypto or knowledge of Web3 is required, making it easy to join. The benefits are said to go well beyond the free food and drinks possible in the current rewards program and may include perks like invites to special events at Starbucks Reserve Roasteries, trips to the Starbucks Hacienda Alsacia coffee farm in Costa Rica and experiences in the metaverse. 

Members earn points when they participate in interactive challenges called “Journeys”. While these essentially function as NFTs, the term is never used. With public sentiment for NFTs taking a hit in 2022, messaging needs to be less about the technology and more about practical value for holders. The program is currently in beta and available to a select number of Starbucks customers and employees, with a wider release happening the year.

Along with Starbucks, Louis Vuitton, Prada and Nike’s Web3 community platform Swoosh, are leveraging NFTs to deepen loyalty with their highest-value customers and Gen Z –– not a bad strategy given uncertain financial markets and a looming 2023 recession.

AI everywhere raises the bar for brands

The rise of AI is leveling the playing field and giving brands of all sizes marketing superpowers. Those that learn how to use AI effectively now, can leverage it as a strategic advantage as markets improve through 2024. 

Thanks to AI tools like ChatGPT3, DALL·E, Stable Diffusion, and Midjourney among others, anyone can enter a text prompt to instantly create images, articles, code, music, and even videos. The implications are profound. What does it mean for brands? An opportunity to outmaneuver the competition and increase marketing efficiencies in ways previously not possible.

Some brands are using AI to extend previous campaigns in new ways. In the Heinz "Draw Ketchup" campaign from 2021 for example, consumers were asked to draw their perception of ketchup. Most drew a Heinz ketchup bottle, showcasing the brand's dominance in the market. The agency behind the campaign recently used AI to generate similar results, and the images were used in ads with the tagline "This is what Ketchup Looks Like to A.I."

Intriguingly, a start-up called Profasee uses AI in a completely different way – reverse-engineering a competitor's negative product reviews to identify untapped messaging opportunities. It does this by having AI summarize the negative reviews of its top competitors, then create benefit statements to counter each one. Brands could use this approach to improve product descriptions and convert consumers with similar concerns. While issues with AI around copyright, privacy, and accuracy remain, its potential to change how marketers work is abundantly clear.