In a competitive retail landscape that is riddled with disruptive Direct-to-Consumer brands and legacy brands in their demise, maintaining a successful brand has proven to be a never ending challenge. But one factor observed from long standing brands is that those who involve their customers in their brand-building and form a community with their fan base are able to win their loyalty and succeed in longevity.

Establishing a successful brand requires innovative approaches and adaption to the ever-evolving digital landscape, especially in the catalytic Web3 environment. By building a compelling brand identity, rewarding brand engagement, creating a sense of ownership, and nurturing customer loyalty, retail brands not only withstand headwinds and constant changes, but also build a loyal customer base that can drive growth and profitability.

1. Reinventing a Brand’s Identity

Shifting market trends, changing consumer preferences, and competitive forces – all these elements pressure retailers to constantly adapt and evolve, but staying relevant whilst maintaining consistency with one’s brand identity remains a challenge.

A few failing legacy brands have been successful in making a comeback after a decade of decline. Take Diesel for example, the once popular luxury denim brand filed for bankruptcy in 2019, yet revived itself after Gen Z kids began worshiping Y2K (year 2000) fashion and its bodycon fits on Tiktok. Most recently, the brand opened a grand flagship in Ginza, Tokyo’s vibrant shopping district, reflecting a refreshed image as it gears up to expand in growing markets across Singapore, Hong Kong, and Korea. During the pandemic, Diesel also began experimenting with its digital ventures, launching a virtual store dubbed ‘Hyperoom’ – a 360-degree virtual selling platform and exhibition space that had led the brand to transition into a tech-savvy brand it is recognized for today. Embracing art and culture as part of its heritage, Diesel has now also taken on the Web scene and launched several NFT initiatives, tapping into the new generation of consumers and thriving community of creatives.

2. Rewarding Brand Engagement

Upon discovering a brand, retailers need to capture and reward customer engagement to boost retention, drive purchases, and cultivate loyalty. While loyalty programs help form a relationship, rewarding consumers at the early stages of a consumer’s shopping journey and throughout is also vital.

Incentivizing customers to actively participate in brand-related activities can encourage ongoing interactions, boost customer retention, and drive purchases. Traditionally, this has involved offering loyalty points based on purchases or actions like following the brand’s social media pages. However, in today’s decentralized digital ecosystem, brands have the opportunity to create more authentic and meaningful connections with customers.

3. Digital Ownership

As consumers patron and affiliate with brands they identify themselves with, they also develop an emotional connection. Seen as a personal investment, this form of ownership is a representation of a consumer’s loyalty and affinity towards a brand. A recent study on psychological attachment to intangible objects has shown consumers to develop a sense of possession over virtual products and services, prompted by the ownership economy we commonly see today in Web culture.

Many Web projects stimulates a sense of psychological ownership that leads to healthy user retention and sustainable ecosystems. This philosophy can equally be incorporated into the retail environment by making reward programs linked to digital collectibles that have a greater tangible use outside of just collecting points, such as access to exclusive brand collaborations or tradable rewards.

4. Cultivating Loyalty and Retention

In enhancing brand success, retailers often leverage loyalty and membership programs to encourage deeper customer engagement. However, loyalty programs are not as rewarding as they used to be, as stamp collections have become a passé and the younger generation is much more fickle with where they spend their money. Exclusive memberships on the other hand help maximize these benefits. The emergence of Web memberships have accelerated this trend as owning digital assets tied to the brand and interacting with other members in the community has helped form authentic interactions, thus deepening the relationship with the brand.

When consumers feel like they are part of a community, they are more likely to remain engaged and invested in the brand. Various engagement strategies as seen from the examples above help develop meaningful connections. Equally, retailers can also leverage emerging technologies like non-fungible tokens that offer personalized experiences and exclusive perks that can incentivize customers to engage with their brand on a deeper level. By cultivating a sense of community among their customers and rewarding loyalty in novel and innovative ways, brands can cultivate long term customer retention and drive sustainable growth.