Swipe (or nowadays, tap) your credit card, and earn points. A process that’s now commonplace has a lengthy history that can teach us more than a few things about customer loyalty — and its journey through technology. Let’s start at the beginning. 
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From paper to plastic 💳
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While the history of credit cards dates back thousands of years, things turned from stone to metal — and later paper and plastic — about halfway through the 20th century with the arrival of the modern credit card in 1950. Reportedly invented following a case of a forgotten wallet, The Diner’s Club Card (initially owned by Discover Financial Services before its acquisition by BMO in 2009) was the first multipurpose charge card credit card intended primarily for dining and travel expenses. 
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The Diner’s Club was also the first to pair the concept of charging credit with fueling consumer loyalty through the inception of points. Through partnering with dining, entertainment, and later, travel entities (i.e., airlines, rental cars, and hotels), Diners Club cardholders paid a tiered annual fee to gain special perks based on how much money they spent. The greater the yearly fee, the greater the perks. 
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About eight years following Diner’s Club in 1958, American Express entered the credit card industry with the world’s first international charge card, which initially had an annual fee of $6 (one dollar more than Diner’s Club). Shortly after, Bank of America and Mastercard followed suit. During this initial period, most credit cards focused on offering customers just that — credit — with loyalty and reward yet to take off. 

Your customer relationship management system is your business's beating heart. It’s how you nurture customers, track vital information, and make strategic decisions. 

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Now that web3 has entered the fold, traditional CRMs can be augmented. So the question is this: Is your brand prepared for it? And what does the future look like?

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Brands can expand upon their CRM data with wallets and token interactions to build loyalty in the changing digital economy. 

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If your CRM is the heart, what happens if it can't support your entire customer base along with their actions and interests? Consumers are adopting web3, and you want to be there from the start. 

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And with increasingly more limitations on what consumer data brands can collect, store, and use, along with apps and systems that don't talk to each other, brands miss out on data everywhere. 

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You need web3 CRM capability to connect wallets and token usage to your web2 data to accurately paint a picture of your customers. 

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Enhancing your CRM with web3, you can track and reward engagement across virtually any physical or digital touchpoint and connect it all in one place to analyze and manage.

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Onboarding customers to create web3 wallets is the first step to getting started. The good news is that, with Mojito, the process is seamless for new users. They can set it up and manage it with an email address. In many ways, wallets have become the new email address, offering more benefits for customers and providing brands with the holistic data and CRM capabilities they need.

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Mojito's web3 CRM collects and pulls all these moving pieces from different parts of the web together to create one remarkably effortless customer experience. 

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In this article, we’ll compare the differences between a web2 and web3 CRM, the benefits of using a web3 CRM, and how Mojito might be the right fit.

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What’s the difference between web2 and web3 CRM?

The CRMs most brands use do not facilitate the needs that web3 has—the biggest one being connecting offchain and onchain data and creating an integrated portrait of customers across all physical and online interactions. 

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Web2 CRMs provide essential data and communication tools to manage emails, SMS lists, social media followers, eCommerce buyers, event attendees, and more. 

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But it's difficult to connect every data source you'd like to trigger into your web2 CRM, let alone add new data sources in web3.

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Brands can instead use a web3 solution to augment their CRM by connecting data sources in a different way that brings everything together. Companies can create the most connected, data-rich CRM they've ever had. 

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Brands require CRM solutions to capture the entire customer data picture across both the internet and real-life experiences. In turn, they create a community-driven customer base, increase sales, and use their CRM for better connections, communication, and data.

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Wallets are the new email addresses

It's no secret that brands are losing data through their traditional channels. Big Tech companies are reigning in how much data you have access to, like Apple limiting cookies, and how brands now get an incomplete picture of their customers.

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Additionally, as customers interact with web3, your brand is in the dark until you establish web3 CRM capability. 

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Web3 wallet addresses are unique identifiers for users on the blockchain. Their address is recorded when they purchase an asset or trigger activity on the chain. With Mojito, onchain and real-life interactions join together in one familiar experience.

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As your customers interact with your brand and create or log in with their wallets, you can associate that with their customer profile. 

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When a customer logs in on your profile manager, they can add their web3 address, resulting in a holistic view of your customer. 

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This is a huge opportunity for first-party data. Your brand can get direct analytics from your activities through a verified, authentic process supported by onchain and offchain interactions. 

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Wallet addresses offer a more reliable and extensive way to gather data on customer behavior, help drive engagement, and make better growth decisions. 

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Cookies are the new NFTs

While traditional solutions suffer from increasingly limited access to cookies, web3 offers brands a bright and better future.

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NFTs are non-fungible tokens. A non-fungible token is a digital asset recorded on a public decentralized ledger called a blockchain. It can be verifiably owned and impossible to forge. 

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NFTs make it possible for someone to digitally own an asset, which has changed the future of technology. But it also provides a unique opportunity for web3 CRMs, engagement, and data. 

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"NFTs: your ticket into a brand's action." — Michael Litman

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Dynamic NFTs utilize live metadata to gather customer information and drive engagement. 

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Before solutions like Mojito's Dynamic NFT, non-fungible tokens didn't change. And why should they? People wanted a unique digital asset that would last forever and retain or grow in long-term value. 

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But as web3 matured, so did the perspective on NFTs. 

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What if the value of an NFT was change?

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For example, artists began to experiment as they created NFTs. They would explain that the NFT would change and evolve. This in itself made it valuable and rose in popularity. 

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Brands would learn how to use it for data and supercharge engagement only a short time later. Traditionally, metadata remained static, but now Dynamic NFTs update metadata based on consumer behavior. 

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Brands can leverage metadata in many use cases:

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Loyalty programs: Customers can join membership communities when they purchase a digital pass with Mojito's traditional, familiar checkout experience. Every time they interact with your brand across any first-party or third-party platform, like redeeming rewards or visiting an event, their token metadata is updated and fed back into your CRM.

Exclusive access: Brands can implement token gating, limiting access to your brand's NFT or memberships. Gate websites, apps, events, games, and more. When customers check in, their activity becomes trackable.

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Enhanced membership and subscriptions: Dynamic NFTs allow brands to sell time-access passes with expiration dates. While owners can always retain the NFT, their subscription must be maintained for full access to benefits. Brands use the metadata to identify subscription holders and analyze their activity (while adding a new revenue stream). 

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Customer interactions: Brands use NFC-enabled spaces to connect customers with their Dynamic NFTs and events, physical checkout experiences, and more, intertwining digital and physical customer engagement. When someone redeems a reward by scanning a code or object, your brand can track that activity. 

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Web3 solutions like Mojito use webhooks to send data from third parties back into your CRM. Every time a user takes an action, Mojito sends that data to your CRM and vital tools. Your data is collected, verified, and authenticated in one place, on or offchain. 

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Mojito offers a cohesive relationship management infrastructure. You can leverage a complete picture of your customers through thousands of interactions involving physical triggers, third-party apps, web2 tools, and web3 activity. Customer actions across the web or in real life can be configured to work with your CRM. 

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You’ll be able to understand your customers better than ever and reward them for their engagement at a level that was impossible before. 

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Benefits of using a web3 CRM

You don’t have to worry about a bumpy or complex ride when you adopt a true web3 CRM. 

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You’ll have all the tools, resources, and tech stack integrations needed to make an enterprise solution for your customers that meets the standards of your brand. 

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Below are several benefits you can expect when you connect your web2 CRM to a web3 solution.

1. Bring web2 and web3 data together

Mojito facilitates web2.5, meaning instead of "switching" web experiences, brands and customers can use web2 and web3 with no learning curve or friction at all. All is encompassed in one familiar internet experience.

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Users can pay with a credit card or crypto and interact with the online apps they've used all these years (as well as easily using web3 apps). 

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Mojito enables brands to collect and pull necessary data to understand their customers through all web iterations and experiences—all in one CRM solution.

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They can use the full power of this web2 and web3 data for events, NFT collections, token gating (exclusive access based on ownership), and other digital ownership experiences.

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2. Actionable data for better customer relationships 

Every brand wants to improve its customer relationships. Still, as the internet becomes more fragmented, especially with the introduction of web3, improving service and keeping up with expectations will be much more difficult. 

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Web2 CRMs are not capable of putting all these actions and platforms together.

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However, web3 CRM platforms improve customer relationships by incorporating off and onchain activities through a centralized database.

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If brands adopt an enterprise web3 CRM, they can meet changing consumer needs and stand out in the market with better and improved relationships thanks to the tools and possibilities web3 offers.

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3. Improved sales and marketing strategies

Now, more than ever, your sales, marketing, and customer service teams will have access to the most accurate and transparent data within multiple channels and communities, all in one place. Your CRM can include customer history, preferences, community management details, and more data points within web3. 

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You can use accurate and more abundant data to analyze customer behavior for improved decision-making. A suitable CRM can also help sales and marketing teams provide personalized messages based on their data, increasing conversions and other KPIs. 

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4. Next-level customer service 

Not only does better, more current information help improve customer relationships but so does the level of service you can provide.

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Your team can proactively resolve issues with real-time data collection (for example, tracking customer engagement and pinpointing areas of opportunity), which increases customer satisfaction. 

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Brands can go beyond positive experiences and create the best problem-solving processes and community-building opportunities for your customers.

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5. Greater ROI potential

Web3 CRMs connect your stack, improving overall sales, marketing, and customer service and building long-term loyalty. 

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These critical benefits offer bigger ROI potential and future growth. By analyzing blockchain activity, brands can track the popularity of certain products, use blockchain-verified data to track inventory and invest in the areas customers are most interested in. 

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Web3 CRMs also open new revenue streams, like selling digital assets with NFTs. Brands can even test the reception of new physical products by selling limited sample releases with “NFT digital twins” (when a physical good comes with an NFT representation at purchase). 

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6. Strategic positioning 

You can better position your company for the economic shift to the decentralized web with a web3 CRM. 

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For example, Mojito's web3 CRM also includes "web2.5" features for the transition. 

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Some customers won’t know how to navigate web3—they’ll want simplicity. Others will want every tool available to them. Web2.5 serves everyone. New users can pay with a credit card and have a user-friendly experience. At the same time, web3 adopters can take full advantage of innovation and opportunities with cryptocurrency payments and more.

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Brands will serve web2 and web3 users for the internet's evolution, and they'll have a robust CRM foundation for the new economy. 

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Consumer brands need a seamless multi-option payment system to satisfy customers and create a high-quality experience. 

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Web3 payments are growing in demand as consumers crave alternate options to purchase and engage with brands. These modernized payments involve AML/KYC compliance, digital wallets, blockchain, smart contracts, crypto, and dozens of tools to create a web3 ecosystem. 

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But here's the good news: With Mojito, brands easily accept payments with traditional methods like credit cards or bank information, alongside web3 digital payments. Mojito brings it all together so you can increase sales and meet customer demand without stress.

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Right now, brands have the opportunity to become pioneers in the consumer web3 shift. Customers can pay how they want—whether with a credit card or a cryptocurrency like Ethereum.

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Together, we'll dive into the uniqueness of web3 payments, blockchain and crypto, benefits, and how to integrate web3 no matter your adoption stage.

Unpacking web3 payments

Web3 digital payments are one component of the web3 ecosystem. Web3 is considered the third iteration of the internet. 

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Three phases were built on top of each other to create an immersive internet:

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Web1: This was the read stage. You could get information from a web page or use the internet as a reference. 

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Web2: The "write and publish" stage gave everyone the power to engage with each other through social media and other platforms that presented everyone with their own corner of the internet. 

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Web3: The phase we find ourselves in today is about digital ownership. Internet users can create something and own it as an asset. They can pay for products through various digital currencies. 

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The best brands have nurtured and serviced their customers through every iteration of the internet. Because of this, they became (and many remain) the biggest movers in the market. 

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Web3 ownership has the following characteristics:

1. New revenue streams

When customers buy a digital good from your brand, it's theirs. But for the first time, brands can add a new revenue stream through the re-sale of their digital goods. 

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If a customer wants to resell an NFT you minted, you can earn a percentage in royalties. Also, if someone sells an item in your marketplace (Mojito can power this with our white-label solution), you can receive a portion of the transaction.

2. Audit capability

Brands build their reputations on quality and customer experience (creating trust). It's vital to develop a payment environment that's transparent and secure for traditional and web3 payments.

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Web3 technologies provide transparency, automation, and audit capabilities. When someone makes a transaction, like a web3 payment or transfer of ownership, it’s recorded on a public ledger—the blockchain. 

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If it’s a digital asset like an NFT (non-fungible token), it has a unique identifier tied to you until you sell it. Since this is public information, everyone knows what data is shared and can verify its authenticity. 

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This allows brands and consumers to trace the provenance and transaction history of digital assets. This offers a safer and more transparent form of ecommerce.

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Not only are these benefits good for consumers, but they also add additional levels of safety and better responsibility standards for brands interacting with their customers and communities.

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Smart contract automation also helps save operational time, cost, and labor.

3. Digital ownership for customers

Thanks to the blockchain (a public ledger), platforms can integrate themselves with it, and users can ideally maneuver between spaces and apps. Consumers can own their digital assets outright.

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For example, customers can purchase your NFT in a marketplace with Mojito’s white-label solution. Since the token, provenance, and transaction are recorded on the blockchain, consumers own it no matter what marketplace they bought it from (like with a physical purchase). 

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Customers don't need a credit card company, the merchant bank, or the bank to communicate. Instead, they can transact directly with you—the merchant—and have immediate ownership. 

Everyone saves on fees and once that payment is sent, you don’t have to worry about chargebacks or losing on completed sales. Mojito makes the payment and integration experience easy and user-friendly, like the internet experience everyone loves today.

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More importantly, brands prevent becoming obsolete (like the iPhone apps Apple created that replaced everyday necessities) and can instead become definitive leaders in the market.  

4. Community and culture

Through token-gated access (when customers have exclusive access to a community, rewards, virtual events, or physical events because of NFT or similar ownership within your brand project), they can join other passionate customers and invest in your brand. 

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Web3 cultural identity plays a huge role. It’s the idea of freedom over your digital assets and data, fostering creativity and innovation. Web3 payments facilitate the buy-in as customers want to grow closer to your brand. 

5. Fast payments

Since web3 payment infrastructures do not rely on a centralized bank or intermediaries, the transactions settle immediately.

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Faster transactions provide multiple benefits to both the brand and the consumer. The first is better cash flow. Businesses have more control over their funds, with faster payments arriving in their accounts. 

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Another plus is a smoother experience. Customers can get their asset or reward as soon as they purchase it without waiting for delayed funds or a slow system. 

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Faster payments create a real-time approach to transactions to improve security, asset delivery, and overall experience. 

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Web3 applications and tooling is rapidly evolving as the industry matures. The last two years have ushered in a new era of adoption by global brands and customer engagement. Amidst this shift, Wallet-as-a-Service (WaaS) is emerging as the crucial bridge for mainstream users to seamlessly step into the world of Web3 and set up their first on-chain ownership of digital assets. This is how the biggest Web2 brands including Sotheby’s to Nike are stepping into Web3. 

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It’s not a revolution, it’s an expansion: new channels, new revenue, increased brand value and loyalty. Set up a Web3 Wallet with email &/ phone number for your customer or login with 193 other wallets via Wallet Connect, Metamask native. This “Web2.5 approach” offers a seamless blend of non-custodial and blockchain-verified transactions, so top brands can effortlessly engage their existing audience while also tapping into the vast potential of web3 natives.

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^{The Challenge: Complexities of Web3 Wallets}

Web3 wallets are essential in offering users control over their data and assets. However, the technical intricacies of setting up and managing these wallets can be an obstacle for mainstream users. 

Mojito stays by your side as your brand navigates this new territory by empowering you with our unique Wallet-as-a-Service.  We manage the complexity, security and risk of Web3 so that you can focus on creating experiences you want for your customers while experimenting with your web3 strategy.

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Branded Wallets  

Your company wants to keep their brand front and center - now you can, with a Web3 Wallet that is branded with your logo, colors and name. Mojito allows you to create a branded wallet, for example “BobCo Wallet.” This means your customers web3 wallet will always have your brand name and your customer can access other parts of Web3 with your web3 wallet. 

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Everything is configurable. That wallet can be 

• limited and only available on your website (we call this “walled-garden)”
• available anywhere a Web3 wallet is available (use it to login, like O-Auth) 

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Your tools, Your Way

Armed with Mojito's SDK, you can create new, robust Web3 wallets for your consumer, and facilitate transactions using crypto or credit cards through the Mojito Payment Mixer, while offering logins to a wide range of existing digital wallets. Integrate digital wallet data into your existing data and reporting infrastructure to  generate insights on spend habits, consumer preferences, and more. We offer a comprehensive solution to help your brand dramatically enhance or transform  loyalty strategies and bolster customer engagement, so that you can generate greater LTV than ever before'. 

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Leveraging Mojito's WaaS: Your Enhanced Customer Engagement Strategy

By incorporating Mojito's Wallet-as-a-Service into your systems, you don't have to worry about the technical, legal, and support complexities of Wallet-as-a-Service. Easily onboard mainstream users with enriched Web3 experiences, process diverse payments swiftly, manage wallet functionalities natively, and efficiently split royalties from transactions using Mojito's Payment Splitter.

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Broadening Your Reach with Mojito's WaaS

Your brand is exploring, working and experimenting with Web3 Tech already. Broaden your brand's reach and amplify your consumer engagement strategy with Mojito’s WaaS. This solution is at the crux of unifying a Web2 profile with onchain data to future proof your analytics strategy. Mojito's WaaS acts as a seamless bridge between Web2 and Web3 to ensure a more inclusive customer experience. Mojito WaaS gives your brand a wallet solution that’s easy to activate, spin-up and get going. Mojito takes care of all the integrations and support so that you can focus. Most importantly, it gives you a way to get into Web3 and extend your existing Web2 strategy.

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Let's chat more

Use Mojito's Wallet-as-a-Service reliable tool, to effortlessly integrate Web3 into your current strategy, and tap into its vast potential of onchain data. We designed our offering in a way that enriches the user experience and facilitates brand innovation. Explore how Secondary Market can benefit your brand with one of our brand experts

Image credit: Reddit

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In July 2022, Reddit launched their ‘Collectible Avatars’ – 150,000 NFTs at $20-30 each for users to purchase (with fiat or crypto) to use as their profile pictures on Reddit. Roughly 3 million new wallets or ‘Reddit Vaults’ were created with the launch, generating ~$6 million for Reddit to-date, with $2.5 million of that from secondary royalties. 

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The successful drop was not only a win for Reddit, but for their community as well. Since all of the Avatars were purchased via user-owned ‘non-custodial’ wallets, they could easily choose to sell on secondary markets where the average price is around $114 for an Avatar. The rare "Cyber Snoo" avatar sold for as much as $24,149. Reddit users love showing off their Avatar, and have made requests for more in future.

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Reddit also gave users the ability to earn royalties on any future sales of their NFTs. While ~75% of their secondary trading volume has been on OpenSea, Reddit announced that it would be launching its own custom NFT marketplace in January of this year. 

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Our 0.02ETH 🍃

The Reddit community traditionally has been skeptical of crypto, and so the widespread positive reception of this launch was a great win. In large part due to its seamless user journey, making it easy for crypto newbies to stand up their own wallet and get their first NFT (using MPC wallet similar to Mojito’s). Everything about this drop was positioned to make NFTs more accessible and user-friendly and to pave the way for wider adoption of the technology.

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Reddit is taking an even deeper step into web3, with the launch of their custom marketplace, and this will allow them to enforce royalties (including payouts to Reddit users), as well as increased trust for new crypto user Reddit fans who don’t want to sift through the chaos of OpenSea.

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