Marketers need a way to meet customers where they are. Increasingly, that is in virtual worlds, where NFTs and metaverse promotions can drive awareness, supercharge sales and build loyalty.
Brands of all types and sizes are experimenting with NFT technology. Initially, some brands launched their NFTs to garner press coverage for being innovative. But the longer they explore the market they are finding new and innovative use cases.
One of the latest trends among brands is using NFTs to modernize loyalty programs. Let’s see why and how brands use these digital assets for customer loyalty improvement.
Why should brands leverage NFTs to cultivate member loyalty?
Customer loyalty programs are an effective marketing tool for building long-term relationships with shoppers and giving them an incentive to keep coming back for more. However, fashion retail is one of the most challenging sectors to build brand loyalty. This market is highly competitive and oversaturated, which makes it hard for brands to maintain customers. With thousands of offers and products, it’s easy to lose customers’ attention and interest.
What’s more, loyalty strategies in the fashion market lack differentiation. They are often easily copied and imitated throughout the industry. Considering that today’s consumers are flooded with similar offers from competitors, brands are looking for ways to modernize loyalty programs in order to retain their customers. For this purpose, retailers are betting that NFTs have the power to engage consumers through unique and exciting digital experiences.
How can brands use NFTs for improving customer loyalty?
Unlike other digital assets, NFTs are unique and exclusive. They are not intended to be mass-produced, and their limited nature drives their value. It is their uniqueness that enables brands to use NFTs to drive customer interaction and loyalty by building exclusive communities of NFT owners. On top of that, brands can attach any kind of reward or experience to an NFT, which allows them to engage with loyal customers in many different ways.
It’s also possible to create a whole set of NFTs for your brand’s loyal customers, granting them special rewards, like premium membership, loyalty bonuses, priority access to new product launches, or VIP passes to events.
The possibilities are endless!
If you want to launch your first NFT project, contact our team at email@example.com.