Would you implement NFT's to your Loyalty Program?
17th July 2023
Written by Tom Peace
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NFTs, or Non-Fungible Tokens, are a kind of digital asset that uses blockchain technology to represent ownership of a special item or piece of content. NFTs are indivisible, as opposed to fungible cryptocurrencies like Bitcoin or Ethereum that may be swapped one-to-one. They are therefore, a scarce resource and can carry a huge value, just like an original piece of art.
Some companies have started rewarding loyal consumers, and introducing new products to them, by handing them NFTs. Either as a spot prize or by making use of their token-based reward programs.
One popular example is Starbucks Odyssey. The famous coffee company has utilised NFTs to enhance its loyalty program. Customers can take part in interactive "Journeys" through Starbucks Odyssey and receive NFTs as rewards. Members might acquire special brand experiences, events, and offers by utilising these NFTs. Members can also access the Web3 community by using the tokens, which are created on the Polygon blockchain.
It has been said that NFTs would become a potent instrument for strengthening brand loyalty programs, and there is a perception in some groups that this is just the beginning.... However, many other brands are waiting to see how this will develop and the speed of adoption seems much slower than initially predicted.
Will customer engagement and brand-consumer connections undergo a paradigm shift as companies continue to investigate and utilise the possibilities of NFT-based loyalty programmes? One clear technology solution is NFTs enabling brand loyalty programs to allow customers to use loyalty tokens across different businesses, broadening the range of rewards. But will brands want to allow their loyalty rewards to be transferred with other brands from a commercial point of view?
Click on the link below to vote now and share your opinions with with rest of the community