How NFTs Will Drive the New Wave of Consumer Loyalty

The staying powerfulness of cryptocurrencies and integer assets successful wide derives successful portion from their versatility. Every clip I consciousness similar I’m nearing the bottommost of the barrel, idiosyncratic contacts maine with a caller usage lawsuit for crypto.

Most recently, however, it was Dan Jurek, vice president of strategical services astatine the Lacek Group, offering a fewer caller spins connected well-established usage cases for integer assets. The Lacek Group is simply a loyalty selling bureau focused connected driving user engagement for Fortune 1,000 companies.

Digital assets similar NFTs and cryptocurrencies are not lone offering caller possibilities for brands to reward loyal consumers, but they person the committedness to physique deeper relationships betwixt companies and their customers.

“It feels similar we’re astatine 1 of those chill milestones successful our manufacture due to the fact that this burgeoning country of crypto and the metaverse are truthful cleanable for what we do,” said Jurek. “With truthful overmuch technology, we tin present personalized experiences based connected what we cognize astir the customers.”

In the astir elemental example, Jurek says that immoderate brands are utilizing cryptocurrencies arsenic outgo methods for their customers, oregon pat integer assets to straight reward desired behaviour from consumers. Other companies are leveraging blockchain exertion itself to guarantee the traceability, transparency and information of transactions. Still others are utilizing NFTs for publicity and promotions.

As caller layers of integer assets are developed and caller applications are innovated, companies person the quality to spell overmuch deeper, said Jurek.

“We’re seeing the metaverse and Web 3.0 being utilized to fell promo codes, and companies are getting radical to look astir and gain things successful the metaverse – that’s wherever I deliberation there’s going to beryllium a batch of growth,” said Jurek. “In NFTs, we spot a marketplace that is rather flooded, but it’s go the way of slightest absorption for companies to get progressive successful the space. NFTs are however brands are dipping their toes successful the water.”

Jurek identified 4 trends that are defining however companies are utilizing integer assets to thrust user loyalty.

“I liken it to an creation auction – radical tin bid connected NFTs, and if you’re a precocious bidder, you triumph the NFT,” said Jurek. “These person been happening for a while. The existent question is what brands volition bash with them to marque customers consciousness appreciated and to support themselves apical of mind, and that’s wherefore determination are NFTs for a cause. It’s similar a badge of honor.”

When a marque auctions disconnected a acceptable of NFTs to enactment a origin with the proceeds, consumers tin “wear” oregon show the NFT arsenic if it were a “badge of honor,” said Jurek, meaning others connected societal media oregon successful the metaverse tin spot that a idiosyncratic supports oregon is progressive successful a social, governmental oregon faith-based cause.

NFTs successful peculiar let brands to beryllium flexible with what they’re offering consumers, said Jurek.

For example, let’s see 2 antithetic consumers of cosmetics, Mary and Amy. Mary spends $5,000 per twelvemonth connected cosmetics, portion Amy spends $1,000.

“Knowing that, we tin differentiate the worth which we connection to each of these 2 NFT holders and leverage it to cross-sell and up-sell,” said Jurek. “So if Amy is buying definite types of moisturizer, we tin springiness her authentic offers and experiences – possibly an exclusive acquisition with a favourite constitution artist. Because she holds an NFT, she mightiness beryllium 1 of lone 50 radical who tin bash that.”

Driving desired user behavior

“Really, what brands are doing close present is saying ‘we privation you to implicit this survey truthful we recognize you better, and successful instrumentality we’ll springiness you this NFT oregon cryptocurrency,’” said Jurek. “With integer assets, they tin besides spell further – if a user gives america their accusation wrong 30 days, their NFT tin beryllium redeemed for ‘x’ magnitude of merchandise and further accidental to bargain things.”

In different words, integer assets tin beryllium a carrot to get radical to bash the things that brands privation them to do.

Speaking of integer carrots…

Brands tin let NFTs to beryllium redeemed for performance experiences, meetings, entree to contented oregon entree to products. But successful the aboriginal consumers volition person a batch much options for however they dispose of their NFTs.

While NFTs are non-fungible, they tin inactive alteration hands conscionable similar immoderate different integer asset, and the secondary marketplace for NFTs is inactive successful its infancy. So let’s accidental Amy, from our cosmetics example, doesn’t truly privation her exclusive acquisition with a constitution creator – she tin enactment her NFT connected the secondary marketplace and commercialized it for crypto, cash, oregon different NFT offering a likewise valued experience.

“This is going to unfastened up a satellite of antithetic options for people,” said Jurek. “Let’s accidental I’ve been rewarded a travel to Hawaii done a points program, but I don’t privation to spell to Hawaii. I tin commercialized it to you for your travel to Belize crossed a secondary marketplace similar Baakt. We’re going to spot a batch much peer-to-peer commerce than has happened successful the past.

What it means for fiscal advice

The proliferation of blockchain- and digital-asset-based rewards programs has a fewer implications for fiscal advisors. For 1 thing, advisors request to beryllium prepared to supply counsel connected however rewards tin and should beryllium redeemed, and they should beryllium comfy discussing imaginable transactions connected a secondary NFT marketplace. Advisors should besides beryllium prepared to vet NFT auctions for a origin and opposition them with other, much accepted giving experiences.

For another, the fiscal manufacture whitethorn privation to follow immoderate of the behavioral—nudging techniques of the larger marque beingness to instill amended fiscal behaviors successful their clients. This mightiness see offering “digital carrots” for bully saving, spending and investing behaviour and offering NFT rewards to loyal clients giving them entree to societal experiences.

By embracing digital-asset-driven user rewards, quality advisors whitethorn find ways to drawback up with the behavioral engineering already embraced by integer concern applications similar Robinhood and Betterment, and make wealthier, happier and much satisfied clients.

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