Everything You Need to Know About Web 3 Loyalty
- Posted on January 20, 2023 by Robert
- Reading time about 6 minutes
Gaining customer loyalty is one of the most essential aspects for every business, irrespective of the industry type they belong to. With the new technological innovations, loyalty programs are progressing and meeting customer expectations with ease. The possibilities of blockchain and NFT loyalty have also expanded and are becoming one of the most exciting innovation areas in the world of loyalty. Along with that, Web 3 Loyalty enables brands to harness Web3 technology and build stronger and more meaningful bonds with customers.
Before you hire experts of the renowned Web 3 Loyalty Rewards Program Platform, we will check out everything about Web 3 Loyalty and how the loyalty rewards program in Web 3 will work magic in offering rewards across all customer touch points.
How Web 3 Is Transforming The Customer Loyalty?
When Web1, the first iteration of the internet came into existence, it enabled everyone to have free access to information & offered opportunities to connect, publish, and sell to anyone across the world through digital platforms.
Another internet upgrade that came after Web1 is Web2, which provided instant access to the eCommerce world (selling and buying of goods and services) and connections that help people socialize with anyone anywhere. That is where companies like Facebook, Amazon, Microsoft, Google, and Apple, collectively known as FAMGA became dominant over people’s lives.
The latest innovation of the internet is Web3 which promises decentralized platforms offering transparency and interoperability (with seamless exchange and information usage). This enables people to create communities and share value across participants. With the implementation of Web 3 in the loyalty world, we can create new and enhanced loyalty experiences that allow customers to track rewards activity across different touch points. Web3 loyalty covers blockchain, crypto-currencies, NFTs, and the Metaverse.
How Web 3 Technologies Will Impact Loyalty?
The technologies will help in working wonders across different loyalty rewards programs. Just like in Web 1 and Web 2, Web 3 technology will be in the background to offer immense benefits. Soon, these
Web3 technology-based rewards programs are likely to become a part of our everyday lives, bringing unnoticeable and non-disruptive updates, if implemented and integrated seamlessly.
Blockchain
Known for transparency and security, the blockchain platform can be integrated easily with different loyalty and retail partner platforms to help in providing secure, real-time, auto-reconciled transactions. Blockchain technology can offer immense benefits to small and large loyalty programs with large and expensive legacy systems.
Here are some of the top benefits in the loyalty world using Blockchain-
– Quick Settlement
Many reward programs, especially coalition programs, involve lots of time and confusing processes to settle rewards or points. Blockchain can be a great help to settle transactions almost instantly with the use of smart contracts.
– Meet Loyalty Conditions
As smart contracts are programs stored on a blockchain that is executed when predetermined conditions are met, it is quite easy for reward program managers to plan any campaign as per requirements. For example, a loyalty program can reward its program members on their birthdays or anniversaries using a smart contract and they can also release a crypto reward for someone’s birthday each year.
Crypto Currencies
Another way of Web3 loyalty strategies is to use cryptocurrency rather than traditional points and miles to incentivize their program members. This enables members to hold a brand new type of digital currency instead of points or miles. Cryptocurrency offers high value as it can be adjusted based on the market forces of supply and demand. Since our program members are mostly millennials, cryptos are known to have high potential that drives much higher engagement among program members than traditional loyalty rewards.
Book a DemoSome examples of reward programs that offer cryptocurrencies are-
– Lolli
This is a cashback app that offers their program members Bitcoin while shopping through the app with affiliate partners
– Binance
This is another cryptocurrency exchange platform that incentivizes users with their crypto token BNB for activities like using or recommending their services.
– E-Stablecoin
This is a cryptocurrency that can be easily transformed into usable electricity.
Non-Fungible Tokens (NFTs)
We all know NFT is a term that specifies a unique digital asset where the ownership is tracked on a blockchain. Here, non-fungible means something that is unique and cannot be replicated. Listed below are a few key elements that must be understood-
– NFT works as a certificate of ownership that individually represents any piece of digital media or asset
– The value of an NFT is the proof of ownership not necessarily the value of the media or asset itself
– NFTs make use of smart contracts, which makes it possible to attach additional utility that expands their purposes
– NFT Loyalty Programs are becoming the new thing that can drive the future of loyalty programs and rewards. Such programs are used by many real-world brands.
Metaverse
Metaverse, also known as a 3D iteration of the internet, is used to visualize a future combination of virtual reality and real-life online interactions that are accessed through a browser or VR headset. This gives people whole new experiences in real-time. The use of the metaverse is not limited to one industry – it covers many from gaming and shopping to organizing virtual events. Hence, loyalty program providers are planning to make use of the Metaverse as a channel to engage with consumers and enhance their online virtual experiences.
If you are thinking to build loyalty programs with the help of the Metaverse, you can allow members to earn and redeem loyalty rewards with ease.
Final Takeaways
Undoubtedly, Web3 is doing wonders in helping brands build deeper relationships with consumers. This shows that Web3 has a major role to play in the future of loyalty. However, as it is quite new in the market, it can be quite complex without expert guidance and governments are still developing legislation to manage perceived risks.
If you are planning to start your loyalty program journey with small Web 3 initiatives, connect with the experts of Novus, a renowned platform for custom-made rewards programs for businesses across the world. Book a demo today to see how Novus can help you build a robust Web 3 loyalty strategy.
