Rethinking loyalty programs with NFTs

Community building, digital coupons, loyalty programs, Tokens not interchangeable (NFT) have more than one trick up their sleeve to revamp the customer experience. Based on the same principle blockchain than cryptocurrency, NFTs are increasingly being talked about in the art sector and now… in marketing. We think in particular about Starbucksin the United States, which raised her The Odyssey Initiative and which consists in offering members the opportunity to purchase NFT within the framework of the loyalty program Starbucks Rewards.

We think that customer retention costs on average five times less than acquisition. And in the digital age, this retention marketing technique is still very popular with brands and the public. However, we must remain on the lookout for what inspires customers and especially the rewards that can delight them. However, here we ask ourselves: is there an opportunity for brands to seize? Can we take inspiration from initiatives such as Starbucks to improve its loyalty program?

Start at the beginning: how to create a loyalty program from NFTs
Imagine an exclusive club created by a brand in which the most loyal customers have access to exclusive advantages. Let’s imagine the same thing, but swapping clubs from NFTs. Do you follow me? Okay, let’s rephrase it another way: let’s take the loyalty card and turn it into digital coupons. We derive a formula that integrates NFTs. This means that NFTs can be linked to something other than digital artwork (which is also sold at exorbitant prices), but also to collectibles, exclusive products or a membership.

By linking NFTs to collectibles, for example, a brand can create a digital wallet that offers its most loyal customers unique and brand-related rewards. Thus, we collect non-exchangeable tokens and at the same time strengthen our relationship with the brand. Do you always follow me? let it Hugo BriandBlockchain CTO at French digital transformation firm Equine, gives us a concrete example: “It is possible to offer NFTs as a loyalty benefit. For example, one could imagine NFTs issued for each subscription year, with exclusive advantages for holders of a full collection over several years. Thus, we base ourselves on the effect of scarcity for interested parties and the possibility of resale for disinterested parties. In other words, everyone wins: one-year customers who are not interested in advantages can resell their NFTs to other customers, who, with a full collection and associated advantages, will become brand ambassadors. This is just one example of many: The NFT market is full of many projects.

Value creation: are NFTs allies?
We have to admit: marketing is taking up more and more space on the Internet. Even as, according to market research company GWI, almost 6 out of 10 consumers choose to buy online in the store. In this context, it should be understood that “NFTs offer a completely new playing field for marketing digital”, if we trust the expert in data analysis, Mohamed Habib Tounsi. “Although [les NFT] often seen as a mere instrument of speculation, these have considerable value to a trader. An NFT can be used to promote a sense of community among your users and to support causes you care about.” This issue of community is also central to the concept of NFTs themselves, which, thanks to blockchain, driven by increasingly dynamic consumer groups. Needless to say, one of the most effective uses of NFTs for brands is to learn from how they perform and focus on loyalty, perception and engagement. An important addition to the value of the brand image.

A new customer experience
More and more experts in digital marketing and data analysis believe that companies should take an interest in NFT in order to, among other things, rethink their loyalty program. Technological innovation, such as NFTs, provides an opportunity for brands and companies to differentiate themselves by offering a customer experience that is currently quite unique. With the rise of metaverse, there is every reason to believe that part of the clientele will migrate to these sectors of the Internet. At the same time, there are more and more followers of alternative currencies, be they cryptocurrencies or NFTs. Are there opportunities to tap into this brand new market (or playground) for brands? Only the future will tell.

NFT in a nutshell

  • What are NFTs?The first NFTs were created in 2014, but they became popular in 2017, thanks to the digital currency Ethereum. NFT means Token not exchangeable or non-exchangeable token, in French. Unlike money, which can change depending on the currency, these tokens are not exchangeable. Therefore, an NFT is unique by definition. They are fully traceable to the owner, who can sell or transfer them.
  • Where are NFTs located? An NFT is a digital token stored on a blockchain. They work similarly to cryptocurrencies, except that they are mostly associated with artwork. Thus, NFTs are associated with files (digital visual arts, videos, etc.) or metadata.
  • What are NFTs used for? For ordinary people, buying NFT makes it possible to support an artist. As a result, by owning NFTs, one gains exclusive ownership of an original, digital work.

Source: Futura Sciences

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