How NFTs can help brands improve customer loyalty
As the buzz around NFTs grows, brands of all types and sizes are experimenting with this booming technology. Initially, retailers released their NFTs to garner press coverage for being innovative. But the longer they explore the market, the more smart use cases for NFTs are emerging. One of the latest trends among brands is using NFTs to modernize loyalty programs. Let’s see why and how brands use these digital assets for customer loyalty improvement.
Why brands leverage NFTs to cultivate member loyalty
Customer loyalty programs are an effective marketing tool for building long-term relationships with shoppers and giving them an incentive to keep coming back for more. However, fashion retail is one of the most challenging sectors to build brand loyalty. This market is highly competitive and oversaturated, which makes it hard for brands to maintain customers. With thousands of offers and products, it’s easy to lose customers’ attention and interest.
What’s more, loyalty strategies in the fashion market lack differentiation. They are often easily copied and imitated throughout the industry. Considering that today’s consumers are flooded with similar offers from competitors, brands are looking for ways to modernize loyalty programs in order to retain their customers. For this purpose, retailers are betting that NFTs have the power to engage consumers through unique and exciting digital experiences.
How brands use NFTs for improving customer loyalty
Unlike other digital assets, NFTs are unique and exclusive. They are not intended to be mass-produced, and their limited nature drives their value. It is their uniqueness that enables brands to use NFTs to drive customer interaction and loyalty by building exclusive communities of NFT owners. On top of that, brands can attach any kind of reward or experience to an NFT, which allows them to engage with loyal customers in many different ways.
Loyalty and rewards play a major role in Prada’s NFT strategy. The Italian luxury house has recently introduced NFTs to its Timecapsule collection. Launched in 2019, Timecapsule is a monthly, limited-edition drop of a ready-to-wear product, which is available to purchase only on the brand’s website for just 24 hours. In June 2022, each physical product from the Timecapsule collection came with a free NFT, giving access to exclusive benefits and experiences. On top of this, the brand promised to gift anyone who previously bought Prada’s physical Timecapsule pieces with corresponding NFTs. This is a great example of how a brand can use NFTs to reward loyal customers for buying its limited-edition products.
Another interesting example of leveraging NFTs for brand loyalty improvement is Dolce & Gabbana’s new set of NFTs — DGFamily Boxes crafted in three increasingly rarer tiers: Black, Gold, and Platinum. Black Box NFTs grant access to exclusive digital and physical drops of the brand’s apparel and provide a membership to a series of metaverse events. Gold Box NFT holders are promised even more exclusive drops and events. The Platinum Box is the rarest and the most exclusive one: it grants access to all of the Gold Box privileges as well as access to the rarest of D&G drops.
How to deepen brand loyalty with Cappasity NFTs
This year, the Cappasity platform will allow brands to create Cappasity NFTs. Cappasity NFTs are different from other digital assets because they contain additional materials (3D/3D View visualization, AR holograms, virtual try-on, and more) besides usual data like images, videos, and textual information. These additional materials are indispensable when it comes to leveraging NFTs for customer loyalty improvement. For instance, you can reward a customer with a Cappasity NFT for buying a specific product. This NFT may contain some interesting materials like the history of the product creation and provide an opportunity to virtually try on the item or experience it in AR as shown in the video:
It’s also possible to create a whole set of NFTs for your brand’s loyal customers, granting them special rewards, like premium membership, loyalty bonuses, priority access to new product launches, or VIP passes to events. The proprietary utility token CAPP will be used in the provision of NFT services: https://cappasity.com/tech
If you want to launch your first NFT project, contact our team at support@cappasity.com
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