The Next Generation of Brand Loyalty With NFTs
In today’s market, we’re seeing more and more brands popping up that offer excellent online experiences and have built strong, loyal relationships with their customers. However, brand loyalty is fading fast as consumers are confronted with more choice. Additionally, as purchase costs continue to rise, these brands are trying their best to explore new ways to maintain a strong relationship with their target audience. Various programs which enhance the positive connection between the brand and customers are gradually becoming significant as brands are interested in both short-term and long-term strategies to improve performance brand development. By doing this, they hope to create long-term customers and step into a new paradigm of brand loyalty.
There are a few points that set successful NFTs apart from the flops in 2021. Firstly, they were consistent with the brand and easily recognizable as part of the larger brand community. Secondly, they were targeted at the brand’s existing community of consumers who were most likely to appreciate and invest in the NFT market. And lastly, they were authentic and presented truly rare items rather than simply focusing on mass production. All these factors will weigh heavily in creating brand loyalty for the next generation of consumers.
Here’s how Nike, a renowned brand utilized NFTs appropriately:
In February 2021, Nike partnered with a creator-led organization on a project called Cryptokicks which introduced a new way for fans to collect digital sneakers. The model was based on scarcity, similar to how Nike releases limited editions of real-world sneakers. What was different about this project was that NFT (non-fungible token) owners would get a specific percentage of shares from sales with Nike. This was entirely new and hadn’t been seen before in the industry. A large number of NFTs immediately sold out and therefore this project got the attention of many fans. This demonstrated a new way for brands to interact with and engage their fans, which will only become more popular in the years to come. The result: an army grown up on brand loyalty.
By introducing NFTs as rewards for their customers, brands are providing a unique and innovative way to show appreciation for their loyalty. In October 2021, beauty brand Clinique became one of the first to launch such a contest, in which participants were rewarded with a branded digital collectible NFT for sharing stories of joy and optimism. This NFT gave them access to fan-favorite out-of-stock products. With smart rewards member programs like this, brands are modernizing the way loyalty programs function. By opening up NFT access only to their loyalty program members, brands are both rewarding and incentivizing their members to join.
NFTs (non-fungible tokens) are starting to gain more attention as organizations begin to see their potential applications. NFTs, digital assets, and new technology are beginning to be integrated into loyalty programs to encourage engagement and long-term customer loyalty. NFTs are becoming a social currency that allows people to connect with brands on a more personal level. Since NFTs offer a more creative canvas, brands can use them as a more potent touchpoint.
Keys To Success
There are many opportunities for businesses to integrate NFTs and loyalty programs right now. By creating a piece of brand history or rewarding certain behaviors, brands can establish themselves as relevant and engaged members of the blockchain community. However, simply executing a successful NFT project is not enough. Brands must also focus on establishing engagement and community to stay relevant in this rapidly-moving space.
Reach out to The NFT Brewery to learn how we can empower your loyalty rewards programs with NFTs and digital assets.