Building Brand Loyalty

Loyalty programs help brands to establish more than a connection with consumers, but they need to offer more than points for future use to build mutually beneficial relationships. These programs should be about community building. Brands can use NFTs to offer consumers memorable items to capture unique moments and extend benefits like exclusive access to products or discounts because of the additional features like programmable smart contracts. Consumers can also use NFTs in more than one way, which opens doors to potential collaborations across industries. 

Brands such as The Hundreds, Gucci and Adidas have been experimenting with using NFTs as a membership program instead of using email addresses as unique identifiers, which is more secure. NFTs use smart contracts on the blockchain to protect consumer data while executing and tracing transactions. Therefore, brands can reduce system-management costs while strengthening the trustworthiness of the system. Privacy and data protection is a rising concern among consumers.