From program to platform: the evolution of loyalty
How blockchain and web3 can vastly improve the loyalty program experience
Blockchain-based loyalty platforms offer customers a vastly different experience than the loyalty programs they’re used to. Instead of cumbersome onboarding from many traditional programs, Web3 technology allows members to sign in and pay with one-click or one-touch experiences.
Members can easily find rewards and perks from their community or others that interest them in easy-to-use, white-labeled dashboards. Their data remains associated with their unique wallet identities. This creates a cookie-like experience where their assets and preferences travel with them wherever they go, whether in-real-life (IRL) events such as concerts or digital (URL) events such as access to discounts and more. This cookie-like experience will be increasingly important as cookie technology gets phased out.
By engaging with customers in a Web3 or decentralized internet environment, brands can create an entirely new brand experience. No need for cookies or old-fashioned tracking technology. Brands can have their own branded channels or communities where customers could participate, gain status, trade, earn, and receive rewards based on their level of engagement.
Imagine that it could be this easy: As a marketing leader for a national fitness brand, you create a list of offers based on activity metrics from your top customers. These could include traditional, static metrics such as the number of gym visits, but they could also include dynamic metrics such as the intensity of cardio workouts based on beats per minute sustained for a certain amount of time, or even a number of burpees as recorded from a smart watch.
Taking it a step further, you could partner with suppliers in adjacent industries to expand your partnership, reach, and revenue with custom offers. For example, you could collaborate with Nike such that, when a customer buys a new model of shoes and performs a workout that month with those shoes, the customer earns additional perks not available to other program members.
That’s the promise of what blockchain technology can do for next-generation brands. By increasing customer engagement and nurturing thriving communities around the brand, blockchain and the promise of Web 3 will transform the loyalty program landscape as we know it.