Do you have an unused plastic bottle? Recycle that, and you’ll receive a token. Visit an Adidas shop, and you will get a cool sport NFT. Imagine the world if everyone is rewarded for being great customers apart from discounts and coupons. But today, brands are evolving with crytpo, blockchain and NFTs. Are NFTs the new brand loyalty programs?
This previous year, musicians have discovered a way to reward their supporters for their loyalty by giving them NFTs, which are blockchain records verifying the uniqueness of a particular asset. For instance, the band Kings of Leon released its album as an NFT and granted their fans an opportunity to win one of six golden ticket NFTs. The tickets give VIP perks for upcoming concerts, like unlimited front-row seats. On top of that, the band also offered open edition NFTs, which come with exclusive artworks.
NFTs; a way to build loyalty reward programs
Loyalty programs are an excellent idea on paper—a way to reward consumers for their loyalty to a brand while providing them a reason to shop beyond the appeal of the products. Nonetheless, loyalty points have lost their appeal, with thirty-eight percent of consumers surveyed saying they are not interested in joining loyalty programs.
Consumer interest in joining loyalty programs has declined for several reasons, the value they provide is not worth the effort, money, or time of signing up.
However, loyalty programs are not going away, but they are evolving. NFTs are the new loyalty program because they provide consumers more choices than just using points.
Customers can use non-fungible tokens in several ways and for different brands, enabling possible collaborations across various industries. What’s more, they are a safer alternative, as NFTs utilize smart contracts on the blockchain. The blockchain is decentralized (not controlled by anyone) as a way to safely trace and execute transactions between two points.
Thus, retailers can lessen management expenses, and the system is more trustworthy and secure.
Keep Your Customers with NFTs
Companies know the significance of customer engagement. They put effort into engaging with their customers on social media and inviting them to like their pages and comment on posts. Facebook in its infancy, “liking” a specific brand was less of a way to show support to the company and more of a way to signal to others’ brand affiliation.
NFTs could fix that concern by giving a means for customers to engage with brands innovatively.
Brands are also improving their connection with customers by sending loyalty rewards using gamification. For instance, the Starbucks Rewards app gives its consumers free coffee and the opportunity to skip the line if they finish daily missions.
Moreover, customers are more incentivized to engage with the brand and feel as if they’re part of the community. Loyalty programs can be great for value. But just imagine how passionate a customer can be if they own something from a brand nobody else does? They can have special access and connections through Discord channels and DAO’s (Decentralized Autonomous Organizations).
I’ll dive into DAO’s in my next blog.
In summary, are NFTs the new brand loyalty programs? Yes. Even better news is that we are at the infancy of NFT’s. NFTs will be the building blocks of the future for brands loyalty programs. This fascinating moment in time is revolutionizing art, security, currency and is spreading through the eCommerce world like wildfire.
Contact us to schedule a meeting about building an NFT loyalty program for your brand.