What will loyalty programmes look like in Web3? Achille Traore, CEO, White Label Loyalty, answers brands’ queries over what to do with the new tech and explains how they can maximise brand engagement and loyalty with customers in the advent of Web3.
We are on the brink of a new era of brand engagement, driven by Web3.0 innovations. Technologies such as blockchain, the metaverse, and cryptocurrency promise to change how consumers and brands interact.
A key problem for businesses today is that consumers are spoiled for choice. With so many options, brands need to know how to stand out. One way in which businesses are trying to become the ‘brand of choice’ is by offering loyalty programmes.
Traditional loyalty programmes reward customers for each transaction they make. But in the modern world, customers want to be acknowledged for more than just spending money.
To create real value, brands should look to technology that can incentivise any kind of activity. For example, if a business wants to increase its online presence, it can reward customers who share their experiences on social media platforms. Or, if a brand wants to increase campaign engagement, they can reward customers who share a campaign with family and friends.
The advent of Web3 will take rewards and engagement to another level.
In the future, consumers could be spending time in ‘virtual worlds’ – like the metaverse – and interacting with blockchain technologies like cryptocurrencies and NFTs.
“Brands can drive how they want their customers to behave”
White Label Loyalty explore what could loyalty programmes look like in Web3:
Rewards won’t be limited to transactions. Brands could reward customers for their time and engagement.
Brands could offer digital rewards to influencers or ‘superfans’ to help them reach new audiences.
Rewards could be decentralised to avoid fraud.
The good news for brands is that this will create many new and exciting opportunities to engage with consumers. One exciting opportunity Web3 presents is the ability for companies to incentivise “brand valuable” behaviour by rewarding specific customer actions. By using technology that can reward any action, brands can drive how they want their customers to behave in Web3. This will ultimately give them more control over a platform that promises to put consumers in a position of power.
The future of loyalty will be tokenised
Rewards will look different in Web3 too. NFTs could replace traditional rewards and engage younger audiences.
NFT rewards could be used to:
Reward loyalty programme members who reach higher tiers.
Reward affiliates, influencers, or ‘brand partners’ who generate sales and attract new customers.
Invite customers to exclusive events.
Create brand engagement via competitions and ‘enter to win’ campaigns.
NFT rewards may be considered more valuable than traditional loyalty points because they can turn customers into brand stakeholders. This would appeal to ‘superfans’ who are interested in owning a part of a company’s history. Rare NFTs, rewarded only to a brand's most loyal customers, can also appreciate over time and create significantly more value than what most rewards programmes can offer today. In this way, NFT rewards could replace ‘platinum’ tiers in traditional loyalty programmes.
Web3 provides brands with new marketing opportunities
By rewarding ‘brand valuable’ behaviours, companies can build stronger relationships with customers and create more engaging experiences – all while driving revenue and market share.
A Web3-enabled loyalty programme will be especially attractive to young consumers. Younger generations will expect brands to integrate Web3 elements into their shopping experience. If businesses can find innovative ways to bring these new technologies into a rewards programme, they will become the brand of choice.
But we are still early in these developments. Brands are only just beginning to learn how to take advantage of Web3 technologies. One thing remains certain: participation in Web3 will be necessary for brands to remain relevant.
As for now, businesses should be doing the groundwork research to explore the potential uses of Web3 marketing so they are best positioned when consumers move into the future.