Unlocking the Future of Loyalty Marketing with Crypto and NFTs
- Posted on April 13, 2022 by Robert
- Reading time about 6 minutes
We all are aware that NFTs are powerful and are becoming a part of many forward-thinking organizations. There are early marketing adopters that are using NFT to reward & incentivize those who wish to shape the future of customer loyalty by offering lifetime prizes and exclusive collectibles. Though this technology is still in the infancy stage, there is rapid evolution. NFTs are one of the most popular use cases of blockchain technology and big brands like Coca-Cola, McDonald’s, Louis Vuitton, Nike, etc. have all coined their own NFTs. In this blog, we will check out how brands are making use of NFTs in loyalty rewards program to embrace new opportunities and reward true customer loyalty.
Why NFT & Crypto are gaining a Huge Attention?
NFT, Non-Fungible Token can be defined as a digital asset that is unique and cannot be replicated where ownership is tracked on a blockchain. Stored on a blockchain, the NFT data is locked and permanent once confirmed by the network of servers that verifies if the data is correct. NFT acts as a certificate of ownership that helps in uniquely representing a media or asset.
NFTs are gaining huge attention lately and here’s why. The NFT market has grown up to a multi-billion dollar industry in a year and its largest marketplace, OpenSea is about $20 billion now. The growing market of NFT and crypto has increased with the evolution of Metaverse. Digital scarcity is the reason behind the creation of the NFT market. Exclusive collectibles are limited and are likely to become valuable antiques in the future, which is why they are priced excessively.
Talking about Crypto, it can be termed as the new-age currency with a growing fan base of Millennials and Gen Z that has a spending capacity of $165 billion. As per the latest research, the market size for cryptocurrency is expected to grow up to $1.087 million by 2026.
Many are excited to make NFTs and crypto a part of Loyalty Program Platform that empowers brands to attract more customers and improve brand value. We will discover the importance of integrating crypto and NFTs into loyalty marketing strategies.
Top Reasons Why NFTs and Crypto Are Becoming the Future Of Loyalty Marketing
Crypto and NFTs are becoming a big trend in 2022 and many brands are making them a part of their marketing & loyalty strategies. Rewarding customers with exclusive NFTs and crypto will not only boost acquisition and engagement rates but also help in making customers feel valued.
Research says an average customer is a member of 14.8 loyalty programs and active only in 6.7 of them. The main reason that makes customers interested in loyalty programs is the reward itself. Rewarding something that customers value is what every brand must focus on. As cryptocurrency and NFTs are becoming the next big thing, it’s better to reward customers with crypto or NFTs so that you can drive customer appreciation and advocacy.
Integrating NFTs and crypto into your loyalty strategy can offer a wide range of benefits and one of them is the power of shared interests. One drawback of traditional rewards or loyalty programs is that they are built mainly for business benefits. But, with NFTs, customers become more involved with the brand as both will focus on the company’s growth. The growth in the company means the growth in value of the NFT as well. This helps in building a solid foundation for a strong brand-customer relationship.
NFTs are unique and exclusive, which means using them with innovative strategies will help the brand create a sense of excitement among customers, for example- Binance’s mystery boxes. Crypto and especially NFTs have an X-factor that helps brands to attract a wide audience, giving you a chance to attract customers outside of your target group.
Build Community for Like-Minded/Loyal Customers
With the help of NFTs and integration of them into your loyalty strategy, you are helping your brand build into a massive global community. You and your loyal customers can create your community with people who take a keen interest in NFTs and stay relevant to position your brand to be part of the next big thing.
Successful Examples of How Big Brands are Using NFTs
Listed below are some of the ways how top brands are using NFTs for their loyalty programs to drive more customer acquisition, engagement & recognition.
Burger King (Royal Perks)
The famous food chain, Burger King has partnered with NFT marketplace Sweet on a set-completion game as a part of its Royal Perks loyalty program and continued investment into a digital platform. In this approach, customers are required to scan a QR code on each meal box to get rewarded with one of the three collective NFT game pieces. On getting all three pieces, customers get the fourth NFT reward which can be a digital collectible, burgers for a year, a call with an artist, or others.
AMC (AMC Stubs
AMC, American Entertainment Company partnered with Sony Pictures during the film release by offering 86,000 NFTs as freebies to selected loyal customers including Stubs Premiere subscribers. AMC plans to offer discounts and benefits to new cinema chain NFT holders and they will collect a small royalty on all transactions made from the trading of the NFTs.
Clinique (Smart Rewards)
The brand conducts a contest for members of its Smart Rewards program where 3 winning members were rewarded with the limited-edition NFT, prior access to a newly launched physical product, and token holders the unlocked access to get Clinique products once a year for the next decade.
Marriott (Marriott Bonvoy)
Marriott Bonvoy, the loyalty program by the renowned hospitality group, Marriott launched its own NFTs as part of its campaign ‘Power of Travel’ where the brand is partnered with digital artists to reward 3 lucky individuals with NFTs and 200,000 rewards points for Marriott Bonvoy.
As we witnessed the continued growth of people’s interest in blockchain and digital assets, NFT likely become a vital part of loyalty programs in the future. There are several benefits that brands can get when they tie up NFTs and loyalty together. For instance, NFT Loyalty Program can create a collectible piece of brand loyalty, reward specific behaviors, create exclusive perks, etc. that are beneficial to encourage advocacy, engagement & long-term loyalty.
Stay relevant by making the best use of blockchain and NFT technology in your loyalty solution. Connect with our expert developers to build a robust and customizable loyalty program that helps your brand retain customers for a longer time.