How Big Brands Are Using Web3 Loyalty Programs To Boost Relationships?
- Posted on July 20, 2023 by Robert
- Reading time about 6 minutes
Customers today are becoming active participants in the brands they love where they can shape their favorite products & services and even co-create new offerings. This approach has completely transformed the way businesses work and has given customers a sense of belonging and ownership, eventually leading to higher loyalty.
Web3 is making this possible as it helps brands to leverage blockchain-based digital identities to interact directly with customers without intermediaries. Let’s find out how companies like Starbucks and Nike are using Web3 Loyalty Programs to deliver more curated experiences that resonate with customers.
What Makes Web3 Different?
Generally speaking, Web3 can be defined as the next generation of the Internet where customers have more control or ownership over their data and online identity. Based on Blockchain, a decentralized network, Web3 has no centralized control point, which is why it transformed the way data is stored or controlled. Another best thing is ownership as customers will have more control of their data and even choose to share it with brands on their terms without any intermediaries.
With the help of Web3, brands can now take advantage of blockchain-based digital identities that enable them to have direct interaction with customers without any third parties. This approach not only helps to unlock a channel for deeper, personalized offerings but also creates a way for more curated experiences that fulfill customers’ needs.
Gamifying Loyalty Programs with Web3
When we talk about a traditional loyalty program, we know that customers earn loyalty points for every dollar they spend. The same can later be redeemed for rewards, such as discounts, free products, or experiences. However, the main drawback of these traditional loyalty programs is that they can be cumbersome and quite difficult to use. Customers no longer have time to keep track of multiple loyalty cards, and they cannot wait until they can redeem their points for the rewards they want.
The next-generation loyalty programs that are based on decentralization can be different as they use blockchain technology to create a safe, transparent, and tamper-proof record of every customer activity and their participation. What does this mean? This means that customers will be more confident about their points being safe and tied to their digital identity.
Several top-notch brands have gamified their traditional loyalty programs by taking the help of the reliable Loyalty Solution Provider who helped in implementing decentralized digital identities into their loyalty programs and have achieved great success.
How Starbucks and Nike are Using Web3 Loyalty Programs?
We will talk about Starbucks and Nike brands that have successfully gamified traditional customer loyalty concepts by integrating decentralized digital identities. Let’s explore to know more about how they used Web3 Loyalty programs and how they achieved maximum results through their programs.
The famous coffee chain, Starbucks takes the help of the metaverse with a strategy that holds both true to its brand identity and also accessible to those unfamiliar with crypto concepts. Their Web3-based loyalty program, Odyssey rewards customers with digital points as well as collectibles that are redeemable against exclusive member-only benefits as well as experiences.
Another renowned brand we will talk about is Nike and their SWOOSH platform makes use of the potential of Web3 domains, which help in delivering a unique and immersive brand experience. Through this program, Nike encourages consumers to compete for rewards in community challenges as well as help co-create Nike virtual creations.
By adding this level of gamification, Nike can win customers’ hearts with ease as customers are not just collecting rewards but also becoming brand ambassadors. The loyalty achieved is priceless and Nike no longer needs to worry about their customers switching to competitor brands.
Both Nike and Starbucks Loyalty Programs show how brands can unlock the key to success by making their customers feel valued, engaged, and loyal. After all, higher engagement with the customers is what you need to retain existing customers & boost loyalty.
Using Web3-Enabled Loyalty Programs for Maximum Benefits
The worst thing about using traditional loyalty systems is to validate customer interactions and ensure that the desired rewards are sent to intended customers, which can be quite complex and unclear.
Let’s consider one example where a brand is planning to reward customers for taking part in a contest or event, it can be difficult to verify if the individuals suitable to receive rewards are the ones benefiting. As there is some risk involved with these rewards as they can be passed on to friends and families bringing a negative impact to the loyalty program.
However, with the evolution of Web3 and decentralized digital identities, loyalty programs can now witness a new and game-changing approach. Brands using Web3 loyalty programs can take advantage of these digital identities, which help them to authenticate their customers in the right way, ensuring that every reward reaches the rightful and deserving customers only.
Using Web3 loyalty programs not only gives brands more control over their programs but also helps to build a direct relationship based on trust with customers, eventually boosting their loyalty. Gone are the days when brands make use of a one-size-fits-all model and customers would be just happy to receive any form of rewards.
Now, to meet ever-increasing customer demands, brands must take steps to curate platforms and meet their needs by offering what customers are looking for. Brands must increase engagement by rewarding their customers with digital collectibles or virtual points, which may not necessarily hold any monetary value, but could act as one by offering extra perks and rewards along the way.
To help your brand stand out, a well-planned Web3 strategy is necessary for the right implementation in your loyalty program so that you can boost customer engagement and brand awareness. However, ensure that you don’t fall behind just by copying from other brands. Though opportunities are endless in Web3, what works for some brands may not work for others. Always be open to experiment and adapt to evolving changes until you make your loyalty program a grand success.
Undoubtedly, the impact of Web3 will be witnessed by every business irrespective of the industry type. For companies that wish to stay ahead of the curve and change the way they interact with their customers, it is crucial to get the Web3 strategy implemented in their loyalty programs.
Novus is an all-in-one Customer Loyalty Software Solution provider that enables brands to revamp their loyalty or rewards programs aligned with Web3 technologies. If you are planning to embrace the power of Web3 and create meaningful value-based customer relationships, connect with our loyalty experts to enhance LTV and extend the customer journey by adding gamification to the loyalty program with Web3.