I recently read an article by CNBC about how NFTS are allowing businesses to begin exploring customer loyalty programmes. Hang, a new B2B startup backed by Allbirds, Warby Parker, and Kevin Durant, is looking to help some of the world’s largest brands replace their existing membership and loyalty programmes with NFTs using the technology.
Budweiser, Bleacher Report, Pinkberry, and music festival groups Bonnaroo and Superfly were among its early clients.
People are buying NFTs in the hope of proving ownership of a virtual item using blockchain technology, which acts as a digital ledger of transaction history.
NFTs enable brands to incentivize their users to not only rank up to a new level in their programme, but also to appreciate the value of the asset that they own and can later resell on NFT marketplaces. As users continue to accelerate their loyalty status, brands can take a royalty or percentage of each resell transaction, which will inevitably make them more aligned with that brand.
Investors have been quick to assert that the utility of digital assets will provide long-term value. It’s a difficult message for institutional investors to swallow as collectible artwork, such as the well-known Bored Ape Yacht Club and the equally hyped Crypto Punks, continues to experience dramatic price volatility in tandem with the recent “crypto winter” downturn.
What are your thoughts on brands introducing NFTs to help retain and satisfy customers?