Wednesday, April 12, 2023
The craft spirits industry puts enormous resources into building its brands and products. These business owners are constantly working on turning customers into a loyal community of fans. Loyalty programs based on NFT technology offer a method to deepen the customer experience. Non-fungible tokens (NFTs) are digital assets that can each be uniquely identified and traded. They are also used as a digital form of ownership that can be attached to physical goods or services.
NFTs have been proven in other industries, such as gaming and software development. In these industries, they have been used to create collectibles and rewards programs that incentivize users’ engagement, retention, and purchase behavior.
NFTs will be the backbone of future customer loyalty programs. They bring new tools to engage and turn customers into communities that current loyalty programs can’t easily do. Today’s loyalty program has become a commodity that gets people in the door. It has been proven that the added income from these programs produces customer loyalty, and the additional income should offset the discounts being promoted. You must have a loyalty program as big players in retail sales or heavily discount your products and services.
What today’s loyalty programs don’t do well is create a community around a brand and work well for small and micro businesses. Loyalty gets one customer, whereas a community invites their friends and tends to spend more money at a business. NFT loyalty programs bring two features that are game changers for small businesses.
Utility and Interoperability These features are game changers for small and micro businesses. NFTs programs supply more than just rewards; they bring a more immersive and fun relationship to the customer and the business.
Utility: NFT loyalty programs can be structured to provide more complex reward programs. Participants are provided with privileges, rights, or rewards that they couldn’t access with a traditional reward card. Businesses will have data to focus rewards and opportunities to their very best customers narrowly. By the way, employers can give employees NFTs that can be used to reward employees that go out of their way to improve a customer’s experience.
NFT loyalty programs can be expanded to deliver more value to customers over time. They can be used to continually enhance a loyalty program and provide more opportunities to build a community around your brand.
Interoperability: Interoperability allows loyalty programs to be developed based on location, industry, or charity support. A neighborhood shopping area, a shopping center, a group of independent pizza shops, or distillers can create an NFT loyalty program. What allows this program to work is that all the procedures would be automatically executed by a program associated with the NFT called smart contracts. The NFTs are important, but the communities are formed by the extras provided by the groups to their most valuable participants. NFTs can allow entry into member-only events, receive discount pricing or prizes, donations to charities, and much more. These things were only possible if one business had to provide the funding. Companies, partners, and customers can interact with a single system without intermediaries.
Progressive business owners would allow customers to interact with each other through the program by allowing them to share and combine points.
Technology Playground feels blockchain and NFTs (non-fungible tokens) build fan engagement. As part of our research, we would like to take 15 minutes of your time to understand better how you currently interact with your customers and talk about how NFT technology can improve this relationship.
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