NFT, Retail and Loyalty: the revolution that is transforming promotions and retail. In recent years, the use of blockchain and NFTs (non-fungible tokens) has revolutionized the retail world, creating new opportunities to improve the customer experience and increase sales.
Companies are using blockchain and NFTs to create engaging and unique shopping experiences that engage customers more deeply and build loyalty. In this article we will explore the various use cases of blockchain and NFT, retail and loyalty are transforming the customer experience.
What is an NFT?
An NFT is a digital property certificate for a unique cryptographic asset that cannot be exchanged for another object. In other words, NFTs allow people to own and exchange digital assets, as opposed to physical, tangible assets. NFTs can be sold and traded online and are maintained and protected in a digital ledger, known as a blockchain.
The process of creating an NFT involves encrypting the associated digital asset, which is assigned a unique digital hash that guarantees the uniqueness of the NFT. This process is similar to the serial numbers used by luxury brands to verify the authenticity of their products. Are you already getting a sense of the impact of this innovation with the use of NFTs, retail and loyalty?
However, there is no central authority to issue and regulate NFTs, but a decentralized, open source blockchain, such as Ethereum or Solana, circulates and verifies most NFTs.
When someone purchases an NFT, its unique identifier. is encrypted in the token to keep track of ownership changes. This ownership information is then distributed throughout the network, so that anyone with access to the blockchain can see them. However, only the owner can access the NFT with its own unique cryptographic key.
NFTs can represent a wide range of digital resources, including photos, videos, digital graphics, and tweets. This means that NFTs can be used as a monetization tool for digital content creators, enabling them to sell unique and rare works directly to their fans and collectors.
There are therefore different types of tokens in the crypto world, we can by summary say that thehe main difference between a fungible token and an NFT is that the former has a uniform value and can be traded for other fungible tokens, while an NFT represents a unique asset and cannot be traded for another NFT. This difference has important implications for the use of these tokens, as fungible tokens are primarily used as digital currencies, while NFTs are used to represent unique digital assets.
NFT, retail and loyalty a disruptive mix!
In addition, NFTs can be used to ensure the authenticity and ownership of digital assets. For example, an organization might use NFTs to ensure the ownership of its documents and their authenticity, protecting them from forgery and unauthorized alteration.
In summary, NFTs provide an innovative and secure way for the ownership and exchange of digital resources. By encrypting and distributing information on the blockchain, NFTs ensure the uniqueness and authenticity of digital assets.
NFT, Retail and Loyalty are you also beginning to see the endless potential?
NFT, retail and loyalty , what are the benefits for retail brands and signs in using NFTs?
NFTs, or non-fungible tokens, have become very popular nhe digital world in 2021, and the market value has been estimated at over $40 billion. Brands such as Nike, Samsung, GAP, Patrón, Hennessy, Konami, Associated Press, Budweiser, Barbie, and Bugatti have all announced the launch of NFT this year, with many other organizations planning to adapt their businesses to the metaverse.
As mentioned, an NFT is a unique digital asset with a registered ownership on a blockchain that proves its provenance. Thanks to NFTs, you know who owns a digital asset such as a photo, video, drawing or piece of music.
This proof of ownership allows digital assets to have value and be traded on marketplaces such as OpenSea, LooksRare and Rarible.
NFT and REWARD are a new currency
However, one area that still remains of strong development is the use of NFTs as a brand loyalty mechanism. NFT, Retail, and Loyalty are and will thus increasingly be destined to create their own ecosystem, and already some big names have begun the first approaches.
To date, brands have focused on NFTs as highly exclusive collectibles aimed primarily at collectors and NFT enthusiasts an extraordinary way to create Hype about a novelty, rather than as a way to engage their regular customers on an ongoing basis.
In fact, NFTs (non-fungible tokens) have become very popular especially in the world of art and collecting. But their use in the retail world is still relatively new and mostly limited to the few big brands with communication and outreach operations for the younger generation.
In contrast, NFTs have far greater potential for more continuous retail operations yet to be discovered. Not only can they be used for customer acquisition of very rare and unique tokens, but they can also be used as a tool to acquire value over time and not only and exclusively in the Metaverse.
For example, a clothing brand could create a unique NFT for each item of clothing produced and sold against counterfeiting, could number “capsule” collections with truly limited quantities.
It could use an “expanded” collection system of NFTs that while not exchangeable with symmetrical units such as money or fungible tokens (hence precisely the concept of NON-FUNGIBLE) can still represent commodities of exchange (and thus value) with other users.
In this way, NFTs could then still be used as an alternative form of payment and exchange since they are based on a concept of uniqueness and scarcity.
From this passage then, NFTs can be thought of as an object to be systematically integrated into customer loyalty, promotions and retention projects for the retail world as well.
Thus, issuing NFTs to reward loyal customers could produce better results for brands than traditional loyalty programs, as well as attract new customers.
Thus, there are three main reasons why NFTs will create loyal customers.
The first reason is that NFTs can be desirable collectibles designed to be memorable and displayed on social media or in digital galleries.
The second reason is that brands can provide NFTs with utilities (benefits) related to their brand, such as discounts, early access to new products, and free products.
Finally, NFTs offer a way to be part of your customer’s online identity, an area that is sure to grow in the coming years.
Can we now imagine how NFT, retail, and loyalty will impact the next generation of customers?
Bennet the NFTs and interactions with the Metaverse.
Bennet recently concluded just these days a contest in which it offered its customers a chance to win listed NFTs created by famous brands such as Gucci, Nike, Adidas, and The Sandbox.
Although NFTs may still be considered niche at the moment, forecasts indicate growing interest in these unique and time-valuable digital objects, particularly in promotional activities and high-end retail.
So going beyond the contemporary phase of “EARLY ADOPTERS” Gartner forecasts, by 2026, about 25 percent of the population will spend at least one hour a day in the Metaverse for work, shopping, education, social media and/or entertainment, opening up new possibilities for brands to interact between the physical and virtual worlds. Bennet seems to have a forward-looking view of how the use of NFTs and the Metaverse can bring benefits and added value to its customers and the community.
Walmart and the Metaverse Project
Walmart, one of the world’s largest retailers, recently concluded a Metaverse project to create engaging experiences for its customers, and the data is more than encouraging! The project, called Walmart World, allowed customers to explore a virtual world where they can shop, socialize with other users and participate in special events.
The Walmart World project was created using blockchain and NFTs to create unique and rare virtual items that customers can collect and use within the Metaverse. These items include personalized avatars, virtual clothing and other digital items that customers can purchase using cryptocurrency.
The use of blockchain and NFTs enables Walmart to create an engaging and unique virtual shopping experience for its customers, which can help build loyalty and increase sales.
Louis Vuitton and Dior
Louis Vuitton and Dior, luxury brands belonging to the LVMH Group, have reported record sales through the use of blockchain and NFTs. In 2022, the LVMH group announced that sales of Louis Vuitton and Dior increased 52 percent year-on-year due to the growing popularity of collections of unique digital objects created using blockchain and NFTs.
Louis Vuitton and Dior have created collections of unique virtual items, including handbags, shoes and other accessories, that customers can buy and collect. These objects were created using the blockchain and NFTs, which means they are authentic and unique, and can be verified on the blockchain.
The use of blockchain and NFTs has enabled Louis Vuitton and Dior to create a unique shopping experience for their customers to own exclusive and rare items. These virtual object collections have also helped to build customer loyalty and increase sales.
H&M has launched a metaverse experience on Roblox, a popular online game for children and teens. This experience allows players to create customized avatars and explore H&M’s virtual universe, which includes virtual stores and socializing areas.
NFT, retail and loyalty and Metaverso, the ideal ecosystem for the next generation!
In addition, the H&M experience on the metaverse features a token-based “fashion rental” option, in which players can rent virtual clothing items for a certain period of time in exchange for virtual tokens. This rental system allows players to experience a variety of virtual fashion styles without the need to purchase clothing.
H&M’s metaverse experience was developed in collaboration with the metaverse technology company, The Fabricant, and is based on the Ethereum blockchain. The use of blockchain enables H&M to securely and transparently manage token transactions and ensure the ownership and authenticity of virtual objects.
Gap has launched a blockchain-based gamified NFT experience called “GapCollect.” This experience allows customers to purchase and collect unique and valuable virtual items, such as virtual clothing and designer items, through the purchase of virtual tokens.
In addition, the GapCollect experience features a token-based “trade-in” option, in which customers can trade in old clothing items for virtual tokens that can be used to purchase new virtual items.
The GapCollect experience is based on the Ethereum blockchain and uses the ERC-1155 and ERC-20 standards for token and virtual object management. The use of blockchain enables unprecedented traceability and transparency of transactions, eliminating the possibility of fraud or duplication of tokens. In addition, the blockchain guarantees exclusive ownership of the tokens, preventing their resale or the creation of counterfeit copies.
In addition, GapCollect has introduced a gaming element to the token collection process, creating a collection of 90 unique and rare pieces, each of which has a different degree of difficulty to be unlocked. Customers can earn tokens by participating in activities such as filling out surveys, purchasing products, and interacting with Gap’s social media. Once unlocked, tokens can be used to purchase exclusive products or participate in special events.
Finally, another example of the use of NFTs in the retail world is LookHuman, a company that produces clothing and accessories with fun and original prints. With the launch of RFTEES Rewards, LookHuman has introduced a new NFT-based loyalty system. Customers can earn tokens by participating in activities such as sharing social media posts or sending photos of their purchases. Once earned, tokens can be used to purchase exclusive products or participate in rare item auctions.
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The world of NFTs in conclusion is now set to revolutionize the retail sector, offering customers new and innovative shopping experiences. The use of NFTs will enable retailers to offer increasingly exclusive and personalized products, increasing customer loyalty and stimulating sales.
In addition, blockchain technology provides greater security and transparency of transactions, protecting both retailers and customers from fraud and duplication. As interest in NFTs grows and technology continues to evolve, it is more than reasonable to think that we will see even more examples of how NFTs will change the future of retail and loyalty programs, bringing otherwise unattainable benefits.
Ecosystem made by NFT, retail and loyalty is set to become a new marketing format
NFT for performance management to employee incentives
Using NFTs to reward customer loyalty is just one of the many uses of this technology. In fact, NFTs could also be leveraged within an organization to incentivize employees and reward their productivity.
NFT, retail and loyalty a new market moving forward
In practice, thanks to NFT technology, it would be possible to create a “value exchange” currency within the organization, used to acquire benefits, badges and rewards linked to a value determined by the NFT, an extraordinary new tool for loyalty actions. This system, in addition to allowing disintermediation from traditional economic logics, would also enable greater globalization of promotional operations and productivity incentives on a global scale.
In this way, companies could recognize and reward the work done by employees more effectively and transparently, encouraging them to always give their best.
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Thus, creating an engaging and motivating experience for users is again key in the use of NFTs for both the end customers of a retail chain and the employees of an organization. This is because, as we have seen, the unique nature of NFTs makes it possible to create a personalized and highly engaging incentive system based on a digital currency that has real value and can be traded, sold and even collected.
For the use of NFTs to be effective, it is important that the content be real and of value to the user.
The Metaverse, the ideal virtual environment in which to tell a compelling story!
In other words, it is not enough to simply offer a badge or a prize, but it is necessary to create an engaging and motivating experience that is able to capture the user’s attention and keep it over time.
An increasingly structured ecosystem made up of NFT, retail and loyalty set in the Metaverse
This can be done through the creation of an engaging narrative and a digital universe in which NFTs are used as currency. For example, one could create a game or series of activities that require the use of NFTs to advance or unlock certain content. In this way, the user would be incentivized to earn NFTs and accumulate them, thereby increasing their value and usefulness within the created digital universe.
In addition, it is important for the incentive system to be personalized and adaptable to user preferences and behaviors. For example, machine learning and artificial intelligence could be used to analyze user data and offer training certifications, rewards and incentives tailored to their targets, certifications achieved, interests and behaviors .
Even for an organization’s employees, using NFTs can be highly motivating and engaging. For example, an NFT-based incentive system could be created that rewards the most productive and deserving employees.
In this way, NFTs could be used as exchange currency to obtain benefits such as extra vacation days, access to training programs or career promotions.
To make the incentive system effective, it is important that the rewards and benefits offered are of value to employees and that the incentive system is transparent and based on objective criteria. In this way, NFTs could be used as a means of creating a more equitable and meritocratic incentive system that rewards employees based on their performance and not just on internal relationships or hierarchies.
It goes without saying that the Metaverse represents the ideal environment for NFTs, as it allows for the reconstruction of social dynamics revolving around recognition, appreciation and a sense of belonging. In addition, thanks to gamification and graphical animations specific to the Unity world, it is possible to make communication still more effective and add elements of “dramatization” to the narrative, which can Attract and engage the younger generation with their language, especially Generation Y (the Millennials) and Z, accustomed from the beginning to interacting with these brands in this way.
Gamification, the best motivational framework for empowering a narrative
As mentioned earlier, creating appealing promotional and incentive paths is essential to engage and motivate the user in using NFTs, whether the user is an end customer of a retail chain or an employee of an organization. In this sense, gamification methodology is a useful resource for creating engaging promotional and benefit mechanics.
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Gamification is about using the elements of games, such as rules, game dynamics, and rewards, in nongame contexts such as work or business settings in order to increase user interest and engagement in such contexts.
Gamification therefore should be understood as a way of building processes into which to lower the user to achieve greater engagement , motivation and thus increase sales.
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The use of NFTs, combined with gamification methodology, makes it possible to create an incentive and reward system based on a non-fungible digital currency that can be easily exchanged among network participants.
In this way, NFTs become a central element in the creation of a virtual ecosystem in which users are motivated to participate and interact with each other, thanks to the rewards and incentives associated with the NFTs themselves. In addition, the methodology of gamification makes the use of NFTs more engaging, as it allows for the creation of promotional and benefit paths that follow the dynamics of games, with goals to be achieved, levels to be passed, and rewards to be earned.
How NFTs and Gamification can impact customer experience in the retail world
Here are ten benefits of how NFT and gamification can impact the customer experience in the retail world:
Customer engagement: both gamification and NFTs incentivize customers to actively participate in the shopping experience, creating deeper and longer-lasting engagement.
Customer loyalty: integrating loyalty programs based on NFT and gamification can help retailers retain their repeat customers by offering special rewards and creating a sense of belonging.
Brand differentiation: adopting innovative technologies such as NFT and gamification can help retailers stand out from the competition and create a unique brand image.
Increased sales: both gamification and NFTs stimulate impulse buying and lead to increased sales, particularly when offered in combination with exclusive offers.
Improved shopping experience: gamification can make the shopping experience more enjoyable and engaging, while NFTs can offer exclusive and personalized experiences for loyalty purposes.
Personalization of experience: both gamification and NFTs can be used to create personalized offers for customers based on their interests and preferences.
Greater operational efficiency: gamification can help retailers better manage warehouse operations and improve efficiency, while NFTs can streamline payment and shipping processes.
Reduced marketing costs: the use of innovative techniques such as NFT and gamification can reduce marketing and promotion costs by creating viral experiences and direct promotion.
Increased profitability: both gamification and NFTs can help retailers improve profitability with loyalty processes by reducing operating costs and increasing sales.
Useful data generation: the use of NFT and gamification can generate useful data on customer behaviors, which can be used to improve the shopping experience and marketing operations. Together, these technologies offer a unique opportunity to create engaging and memorable shopping experiences that meet customer needs and improve business outcomes.
the Metaverse is a Catchy name used to describe a “new internet” in environments now ultra-familiar to early adopters, such as Second Life and many others already on the market for some time, which are predominantly used by Generation Y (the famous millennials) and Generation Z as well as particularly “geeky” profiles inclined by their nature to technological novelty and innovative forms of engagement with promotions and loylaty.
However, this solution remains and will be increasingly ideal for branding the new generations and thus also managing a digital dimensionof brands and signs with the world of games, social and virtual environments.
Currently, this trend that can now be said to have passed its HYPE phase is now entering its concrete in terms of expected results in the market, expectations on results that still remain high, with an estimated world market NFT in the Metaverse by $800 billion to 2025 (Source: Bloomberg)
After the pilot projects of the big fashion and retail brands in recent times so now we expect massive adoption by companies and retail signs.
As is often the case, this will happen with the acceleration typical of FOMO (Fear Of Missing Out) with that sudden “sense of urgency” resulting from delayed awareness rather than pragmatic opportunity analysis.
In any case, the Metaverse looks set to become increasingly present in people’s daily lives and in the world of retail and big brands.