GenZ & Millennials, marked by their digital nativity and forward-thinking perspectives, have emerged as the ultimate Web3 customers.
They are reshaping the world of internet interactions and digital commerce with their unique demands and expectations. GenZ & Millennials are redefining norms and carving out their unique paths as new Web3 customers. They welcome authenticity, cherish individuality, and ardently advocate for their values. Their digital inception positions them at the forefront of a future intertwined with social consciousness and advanced technology.
Web3 is perceived by these generations as an important aspect of their existence. This fusion of tech immersion and social participation positions Web3 as a potent influence in the lives of these 21st-century digital natives.
Brands are presented with a golden opportunity to resonate with both GenZ & Millennials by leveraging their affinity for Web3. They yearn for customized experiences that transcend the boundaries of conventional marketing – seeking authenticity, interactivity, and trueconnection in harmony with their core principles.
Grasping the nuances of GenZ & Millennials’ attributes, anticipations, and requirements is paramount for businesses aspiring to prosper in the emergent Web3 era. By acknowledging their digital personas and their vision driven by purpose, brands can foster effective engagement with these new-age Web3 customers, thereby revolutionizing brand-consumer dynamics.
The new Web3 Customers or understanding the Unique Characteristics of GenZ & Millennials
Born between 1997 and 2010, the GenZ cohort, despite their relative youth, command an economic clout that is impossible to ignore. On the cusp of representing a substantial fraction of the global workforce, with projections showing a threefold increase in their workforce presence by 2030, this generation is a formidable force.
GenZ & Millennials are the trailblazers of fresh viewpoints, ground-breaking concepts, and invaluable proficiencies, poised to reshape numerous sectors. Owing to their digital prowess, their agility in adopting new technologies and their unwavering pursuit of success, GenZ has the potential transform the way businesses operate.
Having grown up in an era of pervasive internet and social media, GenZ has an inherent tech-savviness. Recognized for their diverse backgrounds, social activism, and entrepreneurial inclinations, they constitute an estimated 30% of the global population.
In 2023, the world is home to an estimated 1.8 billion Millennials, also known as Generation Y, representing those born between 1981 and 1996. Millennials form the majority of the global workforce and are projected to constitute 75% of it by 2025. They hold the distinction of being the most academically accomplished generation, with over 60% boasting a college degree.
Notably, this generation exhibits a higher affinity for cryptocurrencies and Web3 compared to their predecessors. A recent study conducted by Bitget reported that 46% of millennials across key global economies hold cryptocurrencies, signifying an accelerated adoption of digital assets. This underscores the growing interest in new in novel financial technologies among these Web3 customers.
A Web3 Digital Native Generation
Belonging to the era of information and technology, the digital native generations, namely GenZ & Millennials, have a certain talent for maneuvering the digital terrain and interacting with a multitude of platforms and devices. GenZ, in particular, represents about 60% of the user base in the metaverse, marking a substantial presence on platforms such as Roblox.
Raised in an era overflowing with technology, these digital natives on average juggle 8.7 accounts across various social media platforms, demonstrating their adeptness at managing a multitude of virtual personas and avatars. Their aigle adaptability and swift adoption of digital novelties distinguish them in the information age.
In a digital environment where self-expression and showcasing accomplishments are popular, GenZ & Millennials are deriving advertising value from their luxury acquisitions on social media platforms, hinting at a preference for alternative options. direct purchase on these platforms. Consequently, brands must recalibrate their strategies to effectively resonate with these evolving dynamics. Loyalty programs steeped in Web3 principles foster personalized engagements and appeal to these tech-savvy generations, who are Web3 customers par excellence.
By acknowledging their fondness for digital platforms, virtual experiences, and decentralized technologies, brands have the opportunity to revamp conventional brand-consumer interactions and spur innovation and collaboration. The digital native generations, GenZ & Millennials, hold immense clout and potential as Web3 customers in reshaping the future of brand engagement.
Unraveling the Values and New Expectations of GenZ & Millennials as a Purpose-Driven Worldview Community
GenZ & Millennials are key catalysts for meaningful transition, seeking meaning and common value in their interactions. In contrast to their predecessors, they avoid passive consumption, choosing instead to actively participate and mold the transformations they envision. The gradual decentralization of the web has fundamentally altered user behavior, giving rise to a novel economic model where digital ownership of non-divisible assets is made possible, users are valued with voting rights (DAOs), and gamers are rewarded (Play to Own).
These generations stand at the vanguard of this paradigm shift, conscious of their influential role as Web3 customers and committed to building a future with robust foundations. They appreciate the necessity of fostering a purpose-driven worldview, magnifying individual voices and achieving collective decisions through consensus. These true Web3 customers advocate a model where intellectual property is democratized, providing fertile ground for ideas and creativity to flourish. Empowered by the decentralized web, they collaborate, co-create, and challenge the established norms.
Emphasizing Authenticity and Social Values with GenZ as Web3 Customers
A defining trait of the GenZ cohort is their yearning for genuine engagement from brands that resonate with their worldview. Naturally, they demand concrete actions from companies to combat climate change. However, they also emphasize battling racial injustice and fostering tolerance, diversity, and inclusivity with respect to ethnicity, sexual identity, and religion, among others. They actively pursue brands that embody these values and undertake practical measures to bolster and uplift marginalized communities. GenZ, as proactive Web3 customers, values brands that heed their voices, involve them in decision-making, and join forces with them to spearhead impactful social initiatives.
How those Web3 Customers are shaping digital spaces and communities
GenZ’s profound sense of community is a distinguishing feature. They communicate and interact within various group affiliations, simultaneously embracing membership in multiple communities, and therein finding identity and a sense of belonging. What sets them apart is their openness to express vulnerability, share candid, unfiltered moments, and acknowledge their imperfections. For GenZ, brands serve a pivotal role in expressing their community affiliation, fostering social connections, and carving a distinct identity apart from mainstream culture.
On Web3 community management platforms, there is an average creation of 314 online communities daily as of 2023, signifying the strong affinity GenZ, the quintessential Web3 customers, crave. NFT communities like World of Women, BAYC, or Nouns function works like traditional communities: their members often share common objectives such as enhancing the value of their NFTs or contributing to the project’s development. These shared goals help in consolidating the community and endowing it with a sense of purpose.
Quest-Inclined Generation: GenZ & Millennials Pursuing interactive experiences
These generations’ enthusiasm for quests and interactive experiences solidifies their position as valuable contributors to online communities. Companies, by using Web3 community tools and platforms, can transform them from mere passive consumers into active team members, enabling effortless collection of feedback, idea generation, and hype creation.
Web3 online platforms offer quests or rewarded tasks to online communities, where users can earn experience points, level up, attain titles, or even secure special rewards. These quests span from simple quizzes to detailed user feedback forms, and from online promotions to code reviews. Brands like LVMH have already set up their own questboards to harness the power of decentralized communities.
But it doesn’t end there. These platforms permit brands to familiarize themselves with their users on an individual level, creating identities based on data accumulated through completed quests. With online visibility, technical skills, and thorough feedback reviews, brands, recognizing GenZ and Millennials as Web3 customers, can now freely tap into the capabilities of their community members to address pressing issues and foster organic growth.
Their Journey to Shatter Conventional Boundaries for more Digital Freedom
GenZ and Millennials, as the ultimate Web3 customers, are fervently working to disrupt and move beyond the rigid binary structures that have long defined our society. Brands, attuned to this evolution, are adopting strategies that transcend the conventional male/female dichotomy, now offering options that embrace gender fluidity and allow individuals to express their varied identities and inclinations.
This inclusivity is evident in Metaverse implementations where brands are creating non-binary avatars and customizable representations that are attuned to the unique identities of these generations. By acknowledging and celebrating a broad array of gender identities, brands are cultivating a sense of belonging and influencing this generation positively. A case in point is the partnership of L’Oréal-owned Nyx Professional Makeup with People of Crypto Lab, a novel Metaverse-centric diversity lab, to launch a non-binary NFT collection and Pride event aimed at enhancing diverse representation in the metaverse.
Tracing the Evolution of Brand Engagement Among GenZ & Millennials as Web3 Customers
These Web3 customers, strongly desire identifiable identity symbols that allow them to express their individuality. They are drawn to brands with prominent emblems such as the Starbucks cups or noteworthy fashion labels like Off-White and Balmain. This generation is attracted to overt branding and exuberant logos that boldly demonstrate their association with particular brands or movements.
These symbolic representations act as identity badges, playing an indispensable part in their self-expression and fostering a sense of belonging. Their engagement in Web3 communities enables these digital natives to navigate a novel paradigm of self-expression where NFTs serve as modern-day identity badges, mirroring their unique preferences, affiliations, and cultural linkages.
A prime example is RTFKT, which has adeptly established a potent Web3 Native Vertical Brand by capitalizing on hype and collaborations, visible in their virtual sneaker designs and NFT initiatives like CloneX and Cryptokicks. This emphasizes the significance of a robust brand image and a sense of belonging, even within the Web3 environment. Nike’s foray into the Web3 realm with its ‘swoosh’ platform further reinforces this understanding.
The Role of GenZ & Millennials in Crafting Collective Hubs as Web3 Customers
Brands, acutely aware of GenZ and Millennials’ affinity for collective spaces, have started to respond. This recognition is evident in real-world pop-up stores and online collaborations like Gucci x Zepeto. In the expansive metaverse, engaging platforms such as Decentraland and The Sandbox serve as interactive venues that foster a sense of community among Gen Z. These hubs unite this younger generation, promoting collective brand experiences and reinforcing community ties and loyalty.
A case in point is Lacoste’s UNDW3 Web3 initiative. This project treated NFT holders to an exclusive party and provided them with access to limited edition merchandise at the prestigious Lacoste Arena located in their flagship store on Champs-Élysées. This successful gathering underscores that arranging community meetups in physical locations holds immense promise for brands aiming to cultivate deeper connections with their audience and stimulate heightened interest in their offerings.
Collaboration as the New Norm for this Next-Gen audience
The GenZ and Millennials, known as THE Web3 customers, perceive brand partnerships as reciprocal alliances. They appreciate brands’ concerted efforts to engage with them and expand their influence. A prime example of this is the Fendi and Ledger collaboration, which has stylishly transformed crypto wallets into luxury accessories, marking the intersection of Web3 and high-end branding. This digitally savvy generation welcomes the blending of different industries and unexpected partnerships, viewing brands as platforms for narrative building and seizing these unique collaboration opportunities.
GAP x Dogami collaboration in 2022 is an example. GAP entered into a partnership with Dogami, a play-to-earn Petaverse game centered around the full ownership of 3D NFT dogs. This initial alliance allowed collectors to personalize and outfit their virtual pets with in-game accessories. The NFT hoodies weren’t just for show; they also served a practical purpose by allowing players to add a unique flair to their NFT dogs. These aesthetic enhancements influenced in-game statistics, an effect typically achieved solely through reward acquisition.
A New Paradigm for GenZ & Millennials as Web3 Customers: Gamified Experiences
Gen Z and Millennials, the forerunners of the Web3 customer base, show a strong affinity for gamified experiences. Their digital nature attracts them to branded gaming realms, customizable avatars and skins, and immersive gaming worlds such as Roblox, The Sandbox, Decentraland, and Fortnite. In fact, one-third of Gen Z gamers express interest in brands creating virtual shops, and 30% show openness towards brands offering clothing and skins for their digital avatars.
Always on the hunt for new immersive domains, these generations engage with these platforms not only for their intriguing narratives but also for the potential to earn rewards. Brands can tap into this gaming propensity by creating branded games and immersive experiences that captivate and involve Gen Z and Millennial audiences, thereby fortifying their bond with the brand.
The combined influence of Gen Z and Millennials as consumers is formidable, shaped by their digital native status and a powerful longing for personalized and genuine brand encounters. These generations prioritize social engagement, inclusivity, and initiatives driven by a sense of purpose that resonates with their core values. For brands to effectively engage with these powerful demographic cohorts, they need to adjust their strategies, embracing the emergent technologies and platforms characteristic of the Web3 era. This involves the use of immersive experiences, engaging gamification, and compelling content that attracts and resonates with Gen Z and Millennials.
To gain a deeper insight into the transformation of Customer Engagement in the Web3 epoch, acquainting oneself with the fundamental attributes of this customer base, and understanding the various advantages accrued by both brands and users, download our Whitepaper around Customer Engagement and Web3 or connect with METAV.RS.
