Why brands should turn loyalty programs into web3 experiences
With well-known brands such as Starbucks, Nike, Meta (via Instagram), and Reddit embracing NFTs (non-fungible tokens) and renaming them digital collectibles, web3 could very well become mainstream in 2023.
As I’ve previously said, for mass adoption to happen, the first rule of NFTs is: you do not talk about NFTs.
With the loaded term “NFTs” out of the way, brands are now seeing blockchain technology as a powerful platform for revamping their loyalty programs.
After all, one of the problems that brands face is market saturation. Many businesses are offering loyalty programs that may be nearly identical in terms of requirements and rewards. How then, can they rekindle the interest of customers and capture their imagination?
This is how blockchain is becoming a powerful tool for brands, allowing them to transform their loyalty programs into web3 experiences that keep customers coming back and give them more valuable rewards.
A powerful example of this is Starbucks Odyssey, which the coffee brand launched in beta in the US on Dec. 8 as an extension of Starbucks Rewards, powered by web3.
“As one of the first companies to integrate Web3 technology and NFTs with an industry-leading loyalty program at scale, and grounding the experience in coffee, connection, and community, Starbucks is entering the Web3 space differently than any other brand. Starbucks Odyssey is an experience, surrounded by a digital community, where members can come together, interact, and share their love of coffee. Starbucks is using meaningful elements of Web3 technology to reward members in innovative ways, including ownable digital collectable Stamps (NFTs) that serve as an access pass to the alluring world of coffee and unique experiences with Starbucks.”
So what has the actual experience been like for those who have tried Starbucks Odyssey?
Here’s an excerpt from a GeekWire article recounting the writer’s first-hand experience.
“One barista I was chatting with at my local Starbucks likened Odyssey to ‘“’Pokémon GO for coffee.‘”’ It’s not a perfect comparison, but there are similarities in the way Odyssey blends and bridges the physical and virtual worlds.
This is especially clear in the Coffee Heritage Journey. In addition to a trivia challenge, and a picture puzzle featuring the original Starbucks store, this journey includes two tasks that show the potential of Starbucks Odyssey.
According to Nitin Kumar, CEO of software company ZBlocks, loyalty programs such as Starbucks Odyssey will be one of the top use cases for NFTs — sorry, digital collectibles — in 2023.
“‘By definition, a loyalty point is a token of your loyalty and your reward,‘ he explained. That, he added, makes NFT-powered rewards ‘pretty intuitive.’
“‘What Starbucks and Nike are doing is they’re taking the audience and converting it to the community,’ Kumar said. ‘If you’re sitting on social media, you have all these people in the audience but they’re not a community, they aren’t connected with each other.’”
Web2 helped brands create an audience on social media. Now, web3 will allow them to transform their audience into a community.
In a very real sense, the applications of web3 for loyalty programs is only limited by the imagination.
That’s why as a web3 experience company, Playfix aims to empower brands by offering its all-in-one blockchain platform. Instead of worrying about the technology, brands can use the Playfix platform to create unique customer experiences online and on-ground.
Want to revamp your loyalty program with web3? Contact us at start@playfix.io today.
Here’s to a brighter future for web3 in 2023!
