Will NFTs be the Next Innovation Trend in Loyalty?
18th September, 2023
Written by Tom Peace
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NFTs have been hailed as one of the most innovating pieces of technologies in the last 10 years is NFTs. NFTS have been implemented in almost every job sector and companies have found ways to implement this technology to promote unique customer incentives.
Brands such as Adidas and Starbucks have had some success implementing NFTs to their loyalty programs. However the utilisation of this technology within loyalty has been slow. Noticeably only attract a small niche of people compared to more traditional loyalty programs and incentive schemes.
But recently the popular airline Lufthansa have created their own NFT loyalty program as a way to reward the customers with certain benefits. Could this create a ripple effect within the loyalty industry and we ask the question "Will NFTs be the Next Innovation Trend in Loyalty?"
The German airline Lufthansa links with Web3 for the purpose of rewarding its customers with non-fungible tokens (NFTs). The new loyalty programme from Lufthansa will enable users to earn reward points in the form of NFT trading cards. These NFT trading cards, which Lufthansa has created, will provide customers access to a variety of incentives, including business lounge coupons, free miles, and frequent flyer status. The 'Uptrip' NFTs, which are a component of the new loyalty programme, are built on the environmentally friendly Polygon blockchain.
Lufthansa are using NFT's to create an engaging and rewarding loyalty system. However it's unclear if a large portion of their customers will engage with this type of loyalty program compared to the more traditional loyalty systems. Many popular airlines such as British Airways have a traditional point reward system, this has been very successful for many companies. Can NFT's provide more rewarding benefits for the consumer.