tw3c #12: YSL Beauty's web3 loyalty testing framework, measuring sales impact & NFT distribution at scale with Arianee

Welcome and GM to The Web3 CRM Brief - or short, tw3c.

tw3c is the number one web3 CRM newsletter for marketers, growth and project managers who scale web3 communities. In this newsletter, I'll share the most interesting stories about

👋 community engagement📊 on-chain wallet data & analytics⛓ tool tipsand actionable best practices to make the most of your web3 communities!

👋 One Best Practice: YSL Beauty's Web3 Loyalty Testing Framework Uncovered

More and more brands are launching web3 loyalty initiatives. Supporters like Salesforce are doing their part to make the execution of such a program as smooth as possible.

But how can brands successfully introduce loyalty in web3 so that it is a meaningful extension of their core business and customer experience?

Let's take a look at YSL Beauty's 5-step testing framework to determine best practices for launching a web3 loyalty program:

• Step 1: Pilot in a time- and context-bound setting: YSL Beauty used last year's Vivatech Paris conference to test the waters. The activation resulted in 24.000 new wallets created serving as the first proof point that such a program resonates with their target audience.

• Step 2: Free mint linked to music artist collaborations: Next, YSL used free mints to test which audience is most inclined to interact with their web3 experience. Lowering the hurdles to interact by making it a free token to claim can help increase reach to then segment the audience into most relevant cohorts.

• Step 3: Digital twins tied to physical products: YSL at its core is a product-based business. Using this is an integral part of the web3 strategy, they gift tokenized digital twins to every purchase of their product line Black Opium. These digital twins serve as a way to unlock token-gated member experiences (allowlists, vouchers, exclusive content).

• Step 4: Crypto art auction: YSL also experimented with the auction mechanism in conjunction with crypto art. However, this initiative did not prove successful as very few of the 279 NFTs were minted initially. Testing different mechanisms and combinations with related industries can help determine what the target audience values most.

• Step 5: Gamified collector experiences tied to product lines: They continue testing different value propositions by linking product lines through gamification elements. The more you engage with the brand, the more tokens you collect and the more value you receive.

At this point, they don't see monetization as their primary goal, as they will stick with free mints for this year. By doing so, they adopt the web3 mentality of creating more diverse, inclusive, and accessible brand experiences for any consumer who is interested in the brand.

📊 One Metric To Consider This Week: Collection Market Cap

Although many web3 initiatives are still referred to as pilots or innovation tests, teams can't circumvent the need to prove that by providing more value to customers, they can also positively impact revenue.

Thus, if your goal is to understand if your token-based activations also impact sales goals, a metric to look at could be Collection Market Cap.

Collection market cap shows the overall value of a given token collection based on its sales price.

• Worth increases over time: Indicative of positive sentiment among customers and an increased demand for the tokens

• Worth remains stable: Indicates a stable market with little fluctuation in demand for the tokens

• Worth decreases over time: Indicative of a rather negative sentiment among customers and a decreased demand. If you're seeing such a trend in collections as part of your loyalty programs, it could indicate that customers are no longer seeing the value they expected.

⛓ One Tool To Look At This Week: Arianee

The case study of YSL Beauty's entry into web3 loyalty underlines the importance of adopting a testing mindset, as it is the case with the introduction of any new product or campaign.

However, many teams working on such programs lack resources to develop everything in-house. If this sounds like you, this week's tool recommendation could help: Arianee.

Arianee is both a protocol and end-to-end platform to mint, distribute and manage NFTs such as proofs of membership, digital assets and digital product passports at scale. Some of the features you can immediately add to your web3 customer engagement flows include:

✅ API for token-gating✅ storefront for digital assets✅ allowlisting flows✅ wallet connects✅ crypto and FIAT payments✅ messaging via NFTs

Kudos to Pierre Nicolas Hurstel & team for building this :)

Thanks for reading! How did you like this edition? Don't hesitate to reach out with any feedback by responding to this email.

Until next week,Lea