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orchid-news-2302-communities-decentralisation

The importance for brands of building communities through Decentralisation

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Decentralisation and DAOs (Decentralised Autonomous Organizations) are emerging as the new norm in the world of branding. At Orchid, we have been observing the growing trend of decentralisation and the popularity of DAOs and in this article, we will delve into why brands should consider these technologies to build communities and transform the way they obtain consent from their target audience.

1 – Understanding Decentralisation

Decentralisation refers to the shift from traditional centralised systems towards more distributed networks. This involves the decentralisation of power, decision-making, and control over data and information. Decentralisation has the potential to disrupt a variety of industries, including finance and marketing, by removing intermediaries and creating more direct and transparent relationships between individuals and organisations.

2 – The Concept of DAOs

DAOs are a new type of organisation that operates on a blockchain and are driven by code instead of people. They are completely transparent, secure, and operate without intermediaries. Brands can leverage DAOs to revolutionise their engagement with their audiences and make decisions together, without the need for a central authority.

3 – Why Brands Should Consider Decentralisation and DAOs

Decentralisation and DAOs offer brands a new way to obtain consent from their target audience and engage with them. By utilising these technologies, brands can create more direct and transparent relationships with their target audience, making decisions together based on shared values and goals, allowing organisations to develop products and services already vetted and chilled by the strongest advocates of your brand. This can help build stronger connections and increase brand loyalty, ultimately creating an empowered community.

4 – Using Decentralisation and DAOs in Marketing Activations

Brands can use decentralisation and DAOs to create innovative marketing campaigns that involve their audience in creative ways, using new tools and features, that gives them more take in the commercial process. For example, brands can use a DAO to incentivise their audience to participate in the direction of a new product or service. Or build new utility novelties using some of the features enabled by the blockchain. This not only gives the audience a voice, but also helps build deeper ties with the brand.

Moreover, decentralisation and DAOs allow brands to create new focus channels and leverage the growing demand for digital ownership. For instance, a brand could create a DAO-based loyalty programme that rewards customers for their commitment and contribution. This creates new forms of relationships between the brand and its audience.

“1000 Fan” theory

This theory states that a creator or brand only needs to have 1000 true fans to be successful. This theory emphasises the importance of building a dedicated and passionate community of fans who will support and spread the word about the creator or brand. This is where blockchain technologies, such as DAOs, can play a crucial role in building communities. With DAOs, brands can directly engage with their audiences, involve them in decision-making, and reward them for their loyalty and engagement. This not only strengthens the bond between the brand and its audience, but also ensures that the brand has a loyal community of core fans who will carry on strong will to support the brand in the long-term. In the world of marketing, where building strong relationships with consumers is crucial, the “1000 Fans” theory, combined with the use of blockchain technologies, can be a game-changer for brands looking to establish a loyal following.

Quick Case Study: Nike's NFTs

In 2021, Nike made headlines with its innovative NFT (Non-Fungible Token) campaign, which marked the company’s entry into the world of blockchain. The campaign, which was called “CryptoKicks,” involved the creation of a limited-edition line of NFT sneakers. Each sneaker was unique and could be bought and sold on the blockchain, making it possible for fans to own a piece of the brand’s history.

Nike’s NFT campaign is a great example of how decentralisation and blockchain technology can be used to build communities and engage audiences in new and exciting ways. By using NFTs, Nike was able to create a sense of exclusivity and reinforced collectability around its products, which helped to increase the brand’s appeal and community self awareness among its fans.

Furthermore, the use of NFTs allowed Nike to obtain consent from its fans in a new and innovative way. By allowing fans to own a piece of the brand’s history and make decisions about how they want to use and sell their NFT sneakers, Nike was able to create a new, more direct and transparent relationship with its fans. This helped to increase brand loyalty and engagement and build new revenue streams.

Nike’s NFT campaign is a great example of how brands can use decentralisation and blockchain technology to engage their audiences and obtain active consent. By partnering with or acquiring organizations and actors of the space, Nike was able to understand and apply to the culture, and even bridging and converting their neophyte following to new mediums.

What do we think?

Here at Orchid, we are convinced that decentralisation and DAOs have the potential to transform the way brands are developed. As the technology continues to evolve and mature, we expect to see more brands adopt these technologies in their marketing mix.

We also believe that decentralisation and DAOs have the potential to create new, more democratic and transparent marketing channels for brands. By allowing brands to make decisions with their audiences, instead of for them, decentralisation and DAOs can help to create more trust and status between brands and their target audience.

In conclusion, as brands seek new ways to engage with their audiences, obtain consent and create value on brand and client side, they should consider the potential of decentralisation and DAOs.

At Orchid, we are excited about the future of decentralisation and DAOs opening new fields of creativity and in promoting a culture of experimentation, for brands to dive.

Get in touch to discuss your ideas!

Category
  • Blockchain
  • Technology
  • Web3
Date
February 15, 2022
Author
orchid_avatar_alexava2
Alexander
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