The emergence of blockchain technology has led to the development of Web3, which offers a more decentralized, transparent, and customer-focused internet, paving the way for new innovations in loyalty programs. With the help of Web3, companies across the world have increasingly started using this opportunity to revolutionize loyalty programs in an effort to retain customers and increase engagement.
Why Web3 Loyalty Programs are on the Rise?
Web 3.0 loyalty programs provide several benefits to revitalize loyalty programs. Consumers today are quite open to loyalty relationships, and Web3 is a rich setting to further boost engagement and scale partnerships more effectively.
Loyalty programs based on blockchain technology including Web3 and non-fungible tokens (NFT) have the potential to be the game changer in a world of fragmented loyalty relationships.
Customers now are overwhelmed by the promotion and messaging from different programs as they manage multiple loyalty accounts. More and more ads and offers fly across their screens, often less personalized. This tide of constant promotion dilutes the exposure of a single program.
Customers often have to keep track of multiple loyalty cards, and they may be unable to redeem their points for the rewards they want. Thus, in order to compete, brands must build a compelling loyalty offering that stands out in a crowded field.
Advantages of Blockchain-Based Programs
Thanks to the burgeoning blockchain technology. Decentralized loyalty programs this technology to create a secure, transparent, and tamper-proof record of customer activity and participation. This means that customers can be confident about their points being safe and tied to their digital identity.
One of the main benefits of Web 3.0 loyalty programs is that customers have full ownership and control over their data and rewards. In addition, Web 3.0 loyalty programs leverage blockchain technology to provide a transparent and trustless system, ensuring that customers can see exactly how their rewards are earned and how they are being used.
Another key advantage of Web 3.0 loyalty programs is interoperability. Decentralized platforms allow for interoperability between different loyalty programs, giving customers the ability to earn rewards from multiple programs and use them across different platforms. It seems these factors helps to build trust between the customer and the company, increasing customer retention and revenue growth.
Companies Worldwide Embrace Decentralization
Over the recent past, numerous companies have started to bank on Web3 loyalty programs to attract more customers. The latest entrant into this decentralized world of loyalty programs is the United Arab Emirates national airline Etihad Airways.
Recently, Etihad announced it will soon release a new 300-edition expansion to its Polygon-based EY-ZERO1 NFT collection, promising holders a slate of new benefits like Etihad Guest Silver Tier Status, priority check-in, lounge access, and the ability to stake their assets to earn miles with the Etihad “Staking-for-miles” program, branded the Etihad “Horizon Club”.
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Leading up to the Etihad: Mission Impossible NFT launch, we have done 5+ partnerships, 25+ AMAs and 150+ collabs. We have spread awareness to thousands of people and the interest that they have shown is overwhelming. pic.twitter.com/qQ1NZmhnNO
— Etihad NFT (@EtihadNFT) July 31, 2023
Additionally, buyers will also be granted membership to the “Etihad: Virtual Club”, which provides an additional 10% extra miles, a fast-track promotion from Silver to Gold Tier for 6 months, and a customized Etihad membership card for online and app use.
Meanwhile, Starbucks continues to expand its Web3 program, Odyssey, with the announcement of yet another NFT drop, open to both its members and the public. Named “Green Apron,” the upcoming drop will consist of 5,000 Stamps minted on the Polygon Blockchain, each priced at $100. The new offering will be a part of its Web3 loyalty and rewards program Starbucks Odyssey.
Odyssey rewards customers with digital points and collectibles redeemable against exclusive member-only benefits and experiences. Furthermore, the Web3 loyalty program allows members to earn and buy digital collectible stamps that unlock access to new, immersive coffee experiences.
Web3 to Disrupt Traditional Loyalty Landscape
Previously, multi-billion dollar companies such as Nike, Salesforce and Dolce and Gabbana, Lacoste, LVMH and Dior among many others have dipped their toes in Web3 loyalty program waters. Web 3.0 loyalty programs provide a more customer-centric and engaging loyalty experience, with increased transparency, trust, customization, interoperability, and gamification.
In conclusion, it can be said that by leveraging the benefits of blockchain technology and creating more personalized and community-driven incentives with gamification. Web 3.0 loyalty programs are poised to disrupt the traditional loyalty landscape.