NFTs as an ultimate tool for brands and companies (the challenges) Part 1.
NFTs started as static images but through time they evolved to incorporate different features and disrupted the art, music, and gaming industries.
BAYC or Cryptopunks are examples of super-successful NFT projects but the next generations of successful projects and collections require one important characteristic — the clear and useful token utility. I really loved the sentence from one of the recent Tachalabs tweets —
“Next wave of crypto adoption will come from utility tokens of real-world companies.”
This is the saint truth upon which we are building Droplove — the no-code tool for the deployment and management of NFT tokens.
From the definition, what does it mean to use NFT as a utility token?
For example, an NFT could represent a key that unlocks access to a certain service or piece of content. This would allow content creators to monetize their work in a new way. Or another great example is issuing NFTs as loyalty points for customers, so not only they can be redeemed for more products, and discounts in the future but it offers a completely new economic model for brands, companies and for their customers. In this series of articles, let’s focus on NFTs as loyalty points.
Challenges of current loyalty programs
Traditional loyalty programs present challenges for both companies and customers. Organizations are concerned with estimating liability, personalization, improving conversion rates, and uniformity among channels. From the customer side, there are challenges with restrictions and rules, interoperability, transparency, and most importantly the utility of loyalty points. While retailers find success with both the physical loyalty card and point-system, a different type of loyalty market is emerging — loyalty points based on Blockchain technology, in form of NFT tokens.
Trust is crucial
Trust is crucial to establishing brand loyalty. With so much personal data involved, brands cannot afford to be cavalier about security. NFT tokens allow customers to exchange tokens for rewards without compromising private data. Blockchain also offers the potential to connect different programs across brands, creating a consolidated loyalty network and the customer accumulates loyalty NFTs within a single “wallet.”
This is great by the theory, but loyalty programs are nothing new and when we associate them with NFTs on the Blockchain, still we are not introducing any breakthrough. What we know from the Web2.0 world, loyalty rewards are still “just points” — think of frequent flyers miles, Starbucks rewards, or credit card points.
So why should you care about loyalty points in the form of NFT tokens?
Because it’s an opportunity and economic incentive for both, the brand and the customer.
We are building the no-code tool to deploy and manage NFT smart contracts! Want to know more? Check out our website.
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