Utility Is Key to NFTs Used For Brand Loyalty

Lately metaverse is the main buzzword for web3 and the future of the internet.  The idea is of an interconnected virtual world full of information, education, entertainment, and merchandise.  The digital worlds will be created to open up the movement of data and value. The very idea of the internet is poised for a change when the metaverse is finally realized. 

This new frontier allows for new ways for brands to connect directly with their fans and clientele.  Digital assets and experiences created that promote loyalty to the company or product can be given out on web3 and used to promote better than any television commercial every could at the moment. 

Legacy loyalty platforms can be changed into something more dynamic and fulfilling to the customer.  Membership cards and discounts can be created for the web3 world with new perks and benefits to keep customers happy and coming back. In order for this to work , the assets need to provide proper utility and benefits for the holders of the web3 loyalty products.

Technology created for web3 such as NFTs have proven to be great for use in promotional campaigns. Coke and Kia both harnessed the technology as Coke has had many significant NFT drops and provided utility that has kept holders happy. Nike has seen shoe sales rise due to the use of their RFTKT partnerships and sales of shoe-inspired NFTs.  Companies have found that utilizing NFTs with their physical products bleeds profits. Tiffany & Company saw the successful sale of their high-priced luxury  NFT and physical jewelry which was partnered with CryptoPunks


The main point of NFTs in merchandising has always been about utility. Creating unique perks for the holders of the NFT has always been what makes a successful project. Platforms such as BAYC and DeGods offer entry into high-tier exclusive communities which builds upon the value of the NFT, NFTs used for loyalty programs may need to adopt a system that is close to that. 

The central thought is to create an experience that goes beyond the paradigm set by web2.  Having the NFT in your mobile wallet could allow for some interesting events such as gamified ads where the user gains a bit of crypto after playing. Ads could come with rewards for users after they agree to watch. Imagine being rewarded with a bit of money each time you watch your Starbucks ad as a Starbucks Loyalty NFT holder


NFTs could also allow for the data of users to be more in control of the user themselves and not shared with parties that are not beneficial to them. Data is only accessible by the company that has the explicit permission via the NFT.

The NFTs can also be used to promise access to specific events and rewards. Imagine holding a Nike NFT which would give you access to a yearly loyalty party in which every holder goes home with some great swag, including shoes that may not be on the market…ever!

The point is there are so many ways NFTs can be used to gain loyalty and keep it. The technology is new and only constrained by the borders of the imagination. 

Genuine and continued utility is what will be needed in the web3 space . NFTs will definitely be around for that growth and will more than likely find a home when the metaverse is fully fleshed out. 

There is of course the gamification of NFTs that has been thrown around for some time now. Though many companies are playing with the idea some of the gamers are not happy, this may be due to the current use of NFTs and many feelings that the technology is nothing but a tool to scam people. 

Companies will need to find a way to add gamification to the use of the technology that will make having the asset worthwhile. The gamification can come with rewards or collectibles that can be used in the metaverse and continue to engage the consumer. 

No matter what NFTs have a future in the new web3 world, as usual the utility of the NFT is what will make or break the project. Companies must use their very best ideas when engaging in use of the new technology 

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