NFT (Digital Collectibles) Loyalty Program- What Does it Mean and How is it Disrupting the Traditional Programming Model?
To define a basic loyalty program, one can simply think of it as an approach where businesses and enterprises offer rewards, bonuses/incentives, and discounts to their customers to reciprocate their loyalty toward the brand. This does not just induce a sense of value to the existing customers, but also attracts new ones, enhances brand advocacy, and improves the current order value. This is how a conventional loyalty program works, it also comes with a lot of drawbacks which is why it did not make much of a success in rewarding customers.
To maximize the benefits and maintain the efficiency of these programs, NFTs or Non-Fungible Tokens came into existence. So, what are NFT (Digital Collectibles) loyalty programs? This article covers a thorough perspective on the future of loyalty programs.
Definition
Similar to the traditional program, an NFT (Digital Collectibles) loyalty program uses digital art, asset, and collectibles to reward customers. In times of today, more and more companies are switching from the outdated version of programs and the reason is the change in consumer habits in preference for digital rewards or tokens. Since Digital Collectibles are based on unique blockchain technology, it also adds the benefit of transparent ownership and security. With its assured protection against fraud and future usability perks, it boosts the main idea of these programs.
Primary Feature
Interoperability is the primary reason for NFT (Digital Collectibles) loyalty programs to disrupt the global market. One can redeem their digital assets for physical and real-world utilities if they wish to. Or it can be used in trading or investing in virtual assets such as cryptocurrencies, gaming assets, trading cards, collectibles, etc in the world of web3 and metaverse- the future.
NFT Loyalty Program- Key Benefits
A more compelling option- The newer generation of individuals believes in making and investing in digital assets as they hold more potential in investment and returns when compared to assets like real estate. So, using NFTs as a mode of reward draws a targeted class of people, the future generation, and the tech-savvy group, making it a more compelling rewarding option for the customers. This makes the consumers believe that the companies are providing them with rewards that hold long-term value.
Unique rewards- Digital Collectibles are rewards that have both physical and virtual benefits, they are unique. One can use their digital collectibles to trade for a different virtual good or invest it, and if they wish to convert it for a real-world reward, they can also alter it for a physical product such as exclusive brand merchandise, etc. These rewards also come with one-time benefits just the way one uses a coupon. Right after it is redeemed, the reward becomes null.
Token gating- Limited-edition merch, an important event or a match, memberships, and also future airdrops can be token-gated therefore providing customers access to special features and commodities.
Flexibility- Last, but not least, the flexibility of redemption is an impactful option for the customers. Not every consumer redeems their scores and rewards points but with the use of a redemption facility, one can sell or trade their Digital Collectibles in the secondary marketplace for an asset they wish to buy.
The Concluding Words
Deployment of business loyalty programs based on NFTs or digital collectibles is the next best thing you can apply to your business and enjoy a higher potentiality. You can get in touch with LootMogul.com, an athlete-led sports web3 and e-commerce platform that allows sports and e-gaming fans to play blockchain games. The games are pretty different from the usual online games, the players have the opportunity of winning digital collectibles (or NFTs), assets, chips, and exciting rewards for completing levels and winning matches. These rewards too are interoperable and can be converted and enjoyed as IRL compensations.
To conclude, we can say that the adoption of blockchain technology is a changed preference for the tech-savvy generations, and the NFT (Digital Collectibles) loyalty programs can result in a fruitful and promising trend.
