Evolving Past Customer Centricity: Why Web 3.0 Cannot Succeed Without A Village Mentality

[Note: This article was originally published on Forbes on March 7th, 2023.]

Growing demand for digital transformation has drastically shifted most organizations’ perspectives on customers, but as Web 3.0 gains momentum, all that is about to change.

Today’s businesses know the importance of applying a customer-centric approach to understand and identify pain points and needs, react to evolving demands and create a resonant value proposition. As a result, companies have transformed entire teams with customer-centricity as the foundation, leveling up their ways of working, mental models and even organizational structures around this valuable way of thinking.

While these changes have been effective, focusing solely on the customer can limit the enterprise potential of Web 3.0. Instead, organizations will require a village mentality to succeed.

In this article, I’ll share the essential considerations of any Web 3.0 initiative and explain why the age of customer centricity (alone) is over.

The Road To Web 3.0

During the internet’s initial adoption phase, organizations found a new channel to communicate with prospects and customers, push content, offer services and strengthen their value proposition. This new platform represented the dawn of Web 1.0.

Web 1.0 introduced a fresh opportunity for most businesses to continue the traditional, company-centric approach that emerged during the industrial revolution, but at a much grander scale with a broader reach. Unfortunately, the static, read-only nature of Web 1.0 websites didn’t provide much scope to innovate or break the mold.

As Web 2.0 emerged, there was a much stronger emphasis on user-generated content and brand interaction. Social media and online presence became essential to running a business, representing a significant brand differentiator and an avenue to create added customer value. During the Web 2.0 era, organizations that failed to evolve their company-centric approach and neglected the customer value proposition struggled to stay relevant, leading to an increased universal focus on customer-centricity.

Today, while Web 3.0 is gaining momentum, its potential impact is already evident. Web 3.0 encompasses things like decentralized networks, digital tokens, virtual and augmented reality interaction, continuously evolving artificial intelligence and the semantic web, offering endless innovation opportunities.

With the emergence of Web 3.0, the business world must adapt again. Mirroring the transition from Web 1.0 to Web 2.0, companies risk failing if they rely solely on customer centricity now that Web 3.0 is available. It’s time to include many more participants in your experience strategy.

Considering A Web 3.0 Strategy

Web 3.0 opens up multiple lanes of value creation and consumption, adding many more edges to the two-way customer/company relationship of Web 2.0.

Organizations should approach their Web 3.0 strategy with at least three personas in mind: the company, the customer or user, and any other participant in the process, such as partners, competitors or entities that could also connect with the customer.

Think of these participants as residents of your Web 3.0 village and consider them all as value creators and consumers with portability and value recognition that goes far beyond simply leading or starting the initiative.

Let’s evolve the idea of customer centricity into village centricity or edge centricity. Village centricity is essential to provide value with Web 3.0 initiatives due to the network dynamics associated with this new era. Organizations must define future value propositions in a way that grows alongside the exponential growth of networks. The more participants, edges or different archetypes a network has, the greater that network’s resilience, value opportunities and reach can be.

Most descriptions of Web 3.0 emphasize customer or user ownership with frequent depictions of the “read/write/own” transformational aspect. Yet, ownership without portability is meaningless.

For example, the virtual world browser-based platform Decentraland offers digital wearables and land but doesn’t make them available in other metaverse worlds. Even Starbucks offers custom tokens, but they’re only redeemable within the Starbucks loyalty program. So, what is the value of these assets if the issuing entity doesn’t make them recognizable or compatible anywhere else?

Ultimately, there is no decentralized value without portability, which is why village-centricity is crucial to Web 3.0.

Building A Web 3.0 Village

As you envision your potential Web 3.0 initiatives, think of value propositions for at least three types of participants. Then, identify the other personas in that village, their needs, pains and contribution to the shared value.

The Customer A customer or end-user is an essential village persona, and it’s crucial to have a value proposition for them. They should be modeled as the key beneficiary of the portability value provided through your initiative.

The Organization The organization may or may not be a persona in that village; there could be different value propositions for your organization leading the initiative outside of being a participant. As a direct participant, the organization’s role should primarily add value to all participants in the network. As an indirect participant, the organization could provide the infrastructure for the network to thrive.

Other Participants The third type of persona is critical for strengthening the network. However, the challenge for every organization is to determine who they are. They should have a different value proposition to the customer or your organization but represent an essential part of your operational network. And you’re not limited to only one.

One successful type is partners that can provide added value to customers that your organization can’t offer.
Another less common type but with the most significant impact and potential is competitors. These participants can increase the value of portability for customers while improving your organization’s competitive edge and customer loyalty since their participation naturally provides the option of choice.
A third type is builders, who can expand the value portability of this network to new levels, often bringing in the highest leaps in innovation.

With the proper buy-in, cooperation and participation, these personas can quickly become the pillars of your Web 3.0 village and introduce the essential portability value proposition that customers will likely soon demand.