How Can NFTs Impact your Loyalty Program: Some Food for Thought
From the current market trends and hype surrounding NFTs, it is clear that this technology can open up new opportunities for digital collectors and artists alike but how do NFTs impact your loyalty program?
How can they be used to add another loyalty element to your program?
Tune in below to find out more and explore the potential use cases for NFTs in the loyalty scene.
Top 3 Use Cases of NFTs in Loyalty
Collectible NFT promotions
Do you remember the collectibles that we used to get at the end of our journey in the grocery store, while we are paying at checkout and the cashier goes “would you like to collect X points or Y stickers”? These collectible rewards were given to customers, similar to the one below which featured packs of, ‘cool beans’, a toy implemented in hypermarkets around Russia with 21 different variations.
These are the usual campaigns that make up a big part of the traditional loyalty programs that exist today. Brands could take this concept to another level by implementing similar promotional collectibles but digitalized through NFTs. Think ‘Crypto Kitties’ but for brands… The collectible toy could be obtained by a code received at checkout, even a QR code printed on the receipt. This would enhance the experience by gamifying the process even more and would implement a social aspect by enabling customers to share their excitement more easily through social media.
The Digital Twin
NFTs could also be used to complement your loyalty program by enhancing brand trust and thus increasing general customer satisfaction (Neil Patel).
Virtual assets could be tokenized, a digital twin of an asset such as a watch could be created. Luxury items make a good case for NFT applications.
As mentioned, this enhances the trust and transparency when completing a transaction, since NFTs act as a perfect authentication medium (unique ID linked to a unique item). The watch could also be shipped digitally as an NFT before production is complete. This way the customer can already take a sneak peek at what the complete piece would be.
Paid Loyalty Program Benefits
Similar to what NEXO implemented with their different loyalty tiers, which allows users to receive increased rewards from their crypto holdings if at least 10% of their wallet consists of NEXO token (NEXO’s native token).
Essentially allowing users to receive better loyalty program benefits by paying more, this idea could also be presented as an NFT case.
Instead of simply stating that users have to own the NEXO token, the brand could have implemented a NEXO NFT that would act almost as a membership pass for users to receive the previously stated loyalty benefits.
Key Takeaways (TL:DR)
Point 1 = With the mainstream implementation of NFTs, an impact on loyalty was definitely observed. The flexible nature of NFTs and their multi-faceted nature makes them exceptionally useful to use as membership tokens for a loyalty program or even an NFT medal for your most loyal users.
Point 2 = Always consider what traditional loyalty systems already exist and what type of products can create loyalty, such as Pokemon packs for collectors, Kinder Surprise eggs for kids, and grocery points for everyday shoppers.
Point 3 = Use the knowledge from traditional loyalty programs and elevate it on a digital level, integrate NFT technology but clearly define the intention behind the technological integration and whether it proves to be beneficial for that use case.
Although the topic is fresh and the use cases are still conceptual, many of the ideas discussed have real loyalty potential. We are aware that there are a lot more concepts to be explored in the future regarding NFT and loyalty.
Right now presents the perfect time to experiment with all the different models revolving around NFT, we should stay open-minded and be creative! If you have any ideas for use cases in relation to NFT loyalty, please let us know in the comments or on our socials using the hashtag #qiibeeNFTs.
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