A growing interest in non-fungible tokens (NFTs) has paved the way for brands to use NFTs for their loyalty programs.
The uniqueness of NFTs that give their owners exclusive privileges and status are the rewards that today’s customers want.
From creating collectible pieces or rewarding specific behaviors to programming exclusive perks and community access rights, there are so many creative ways brands can tie NFTs and loyalty together.
Let’s dive in to look into how brands are using NFTs for their loyalty programs.
#1. Loyalty Program & Customer Retention
NFTs can be used to create customer loyalty programs, where customers are rewarded for purchasing products from a certain brand. This would allow brands to build up a base of loyal customers who are more likely to purchase from them in the future.
Customer loyalty programs are already common in the retail industry, and NFTs would allow them to be taken to the next level.
To illustrate, a brand could offer an exclusive NFT to customers who purchase a certain amount of products from them. This NFT could then be used to unlock discounts or other benefits from the brand.
Clinique, a cosmetics brand, offers the chance to win unique digital artworks to its loyalty scheme members. And not only that, but they offer rewards in the form of several cosmetic products in one year!
This can incentivize customers to keep coming back and spending money at the business.
#2 - Vouchers or Coupons
In a world where brands are competing with one another to win over customers’ loyalty, there has been an emerging way for them all to become more valuable - digital vouchers.
However, gift card scams are one of the major internet scams.
With NFTs’ ability to assign ownership rights to the vouchers, brands can create digital vouchers or coupons that can be redeemed for discounts or other benefits.
NFT vouchers can provide so many BENEFITS to brands such as:
· allow brands to reward customers for their loyalty
· collect valuable data about their customers….
· save production cost of issuing new vouchers regularly as NFT vouchers can be re-used over and over again
· potential for more exposure since the vouchers/coupons are stored in digital wallets which can be viewed by public eyes
· allow the owners of NFT vouchers/coupons to sell and trade their on NFT marketplaces but also an option to make some money.
· NFT vouchers/coupons can be used in the Metaverse for brands who are making their way into this futuristic world where they can provide perks to their customers.
#3 Community Building
Human beings are social creatures. We crave connection and the need for it never goes away. What's more exciting is to connect with like-minded people over a brand or product you're passionate about.
With NFTs, brands have a new and innovative way to build up a community of customers and fans - who can interact with each other and the brand.
These communities can be used to promote new products, collect feedback, or simply build relationships with customers. Alternatively, brands could use NFTs to run competitions or games that would engage customers and fans.
For example, a fashion brand could use an NFT to create a digital fashion show, where customers can vote on and comment on the looks. This would not only engage the customers but also give the brand valuable feedback.
Have you ever wanted to be part of the Web 3.0 community?
Consortium 21 is building up its Web 3.0 community by issuing its very own NFT called C21 Premium Pass. If you’re interested to be part of the thriving community in Web 3.0 space, join Consortium 21 community HERE!
Are you curious about how Web 3.0 will impact your business?
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