NFTs Are Groundbreaking Continuation Of Digital Rewards And Loyalty Programs

NFTs Are Groundbreaking Continuation Of Digital Rewards And Loyalty Programs?

I am referencing here a few articles i wrote about the impact of digital rewards on loyalty. They are becoming even more relevant now with the boom of the NFTs that are talking digital rewards into an even more exciting dimension.

In reference of How Brands Can Utilize The Power Of Branded Currencies we can see how within the next five years, we witnessed several lucrative programs, all tailored to give a personalized experience to the loyalty program. Now, we NFT breakout, we are looking at another unprecedented change.

Starbucks, a pioneer of digital rewards, but also Nike,YouTube, Spotify, Luis Vuttion, Burger King, or Taco Bell are among the many leaders in their respective industries entering the NFT domain. They are all working on releasing NFTs that are beneficial for their customers.?

These NFTs either have rewards or value to add to their experience. In short, building loyalty. However, digital rewards and assets for loyalty aren’t a new frontier. It has existed for quite some time. Non-cash rewards and loyalty were predicted to be the most effective endeavor.?

With that in mind, let’s explore how NFT is just a continuation, albeit revolutionary, as a digital reward and loyalty program:

The Foundation Of NFT Loyalty?

Post-2020, we have witnessed exponential growth in the blockchain industry and revolutionary NFT integration. The NFT trends gained trajectory in 2021 with successful projects like VeeFriends and Bored Ape Yacht Clubs. Later, we witnessed the Play-To-Earn aspects of NFT Projects. These NFT Projects are essentially games on the Metaverse. And how did Metaverse gain popularity? When Facebook announced the name change to Meta.?

The collection of these events led the world to pay attention to the NFTs. NFT Projects started to implement a new and unique reward system. Inspired by famous Battle Passes, or Game Passes, they introduced NFT Passes. NFT Passes are essential tokens a person can invest in to hold and lock away. They receive exclusive perks like:

● Early access to exclusive sales from the NFT games/projects.

● Airdrops of unique rewards, NFTs, and other programs.

● Access to Alpha/Beta testing.

When you look at the surface, it isn’t that different from pre-registering for a project. The only difference is that people utilize the hype of the ‘NFT’ and ‘Blockchain’ words to launch their projects successfully.

The Similarities Between NFT Loyalty And Digital Loyalty Programs?

The case for digital loyalty is that you can seamless reward any action, instantly

You will find a use case, among other examples, on how NFT and Loyalty are working synchronically. But let’s draw outcome similarities between the two domains, just like the pre-registering rewards:

There is an array of insights on how you can benefit from personalized loyalty programs. But let’s focus on what NFT is doing. It enhances this customized experience. How?

● Each NFT is unique and one-of-a-kind. They all have specific digital codes and traces. This makes each customer that holds NFTs, a special patron.

● NFTs also have specific values and redeemable qualities, as we have witnessed from a campaign from Burger King. Nike and Starbucks are also working on something similar.?

● You can evolve the NFTs, mint new ones, or customize them. This is another personalized approach. It can work similarly to the loyalty or VIP Program level-ups. Thus, it can open a new range of rewards, membership perks, etc.

Ultimately, these experiences result in a better experience for the users.

However, if you notice, these are very similar to what digital loyalty programs, either on cards for miles or airlines for rewards, do. When you hold an exclusive credit card or debit card, you gain access to premium lounges, specific services, etc.

Similarly, when you are a loyal member of a company like Dominos, you could receive special codes for special discounts. There could even be an entire celebration for you. So ultimately, there are many similarities. But of course, there are differences or enhancements to the prospects, as well.?

The Aspects Enhanced By NFTs?

After drawing out similarities, it is only natural to talk about what NFT programs offer better than digital rewards. Why should you be using or implementing them? What is this ‘groundbreaking’ continuation? Well, here are some examples:?

Loyalty Programs For Everyone?

NFTs can become a gateway for almost anyone to build a loyalty program for their services. Influencers, Artists, YouTube Creators, etc., can easily incorporate it and develop better relationships with customers.?

That’s what Starbucks, Spotify, and YouTube are working on. We can expect a way for people to develop better bonds with their fans or loyal customers and recognize them.?

NFTs Can Help Keep Track Of Loyalties

Let’s assume that you’re a Musician who released 1st generation of NFTs for loyal fans. Five years down the line, you want to check who has the 1st Generation NFT and stayed loyal to you. Maybe you want to reward them or increase their chances of gaining rewards.

NFTs can work as a vital imprint. If there is a holder of 1st Generation NFT, you will find them and can reward them accordingly. It could be a pass to your concert or some autographed merchandise. Maybe you wanted to open a new line of NFTs for your loyal patrons.

So, you can see how NFTs help with Personalizing The Loyalty Program.?

Digital Gifting Is Pinnacle Of Engagement?

In the generosity marketing manifesto i highli

Digital Gifts have always surpassed the physical gifts because:

● There isn’t any limit on distance or physical availability. Almost anyone on the internet or in the digital world can receive them.

● The digital rewards are faster to process, and you can redeem them confidently. Unlike the real-world redemption of coupons and other prizes.

● You will always have proof that you were once rewarded for it.?

It is also easier for the enterprise to keep track of rewards on a digital spectrum. You can easily detect the received or pending gifts. It is easier to conduct surveys. You could even assign specific surveys or queries with the gifts, and people will be more inclined to participate.

Digital Assets Are Holistic?

Digital assets, and rewards, aren’t just for loyal customers but for employees too. There has been a significant increase in the recognition programs by various companies. However, more can be achieved by offering NFTs as digital gifts or assets to customers, and employees, alike.?

How’s that? You increase employee engagement.?

Well, try to put yourself in the shoes of a person in today’s world. We are all hearing about NFTs. There is a FOMO heavily at play for those who haven’t invested in the segment yet. People want to get an opportunity, but NFTs are becoming too costly for them without significant investment.

Suddenly, you become eligible for an NFT from a famous brand or an artist. Alternatively, it could be your company offering you some NFTs or cryptocurrency as a reward for being a valuable member. How will you feel?

Of course, you will be delighted. There are many reasons for it:

● You are getting recognized.?

● You are getting a personalized experience.

● The company, or brand, is offering you something that holds value.

● This NFT could also increase in value in the future.

These qualities turn NFT loyalty rewards into something way better. Thus, it enhances employee and customer engagement. You can also use these opportunities to spread brand awareness, and information, among other things.?

As you can see, NFT is the next stage in the digital rewards and loyalty assets for any enterprise.