In the era of Web3, how will blockchain technology help brands improve customer loyalty?
In the era of Web3, how will blockchain technology help brands improve customer loyalty? When we mention the Web at three o'clock recently, we will find that consumers' enthusiasm for it has been declining. Brands need to choose basic technologies such as NFT and blockchain to quickly adapt to technological changes. The following content will answer for you.
1、 Blockchain technology plays a role
With the collapse of the Crypto field and the lack of complexity of attracting customers in a meaningful way on the Meta Universe platform such as FTX, it is not difficult for us to understand the reasons after the collapse of the trading platform and in the rampant fraud or undisclosed publicity of digital currency endorsements. In this context, many enterprises are avoiding virtualization and choosing things that are not in the metauniverse or related to art. NFT has stepped up its pace in venture capital and corresponding investment.
However, digital art has occupied the headlines since 2021. The potential change of NFT does not necessarily mean that the company is in progress. Web3 is a bigger rejection in other aspects. In fact, Deloitte said in its annual Global Luxury Power Report that the continuous digital revolution of Web3 has generated great enthusiasm in this field and provided unprecedented innovation and rare opportunities for enterprises.
Deloitte also pointed out that "generally speaking, the blockchain technology Crypto has begun to play a role in the luxury market from the perspective of product tracking and identity authentication". Specifically, Deloitte's report emphasizes the partnership between LVMH, Prada and Cartier Aura, the blockchain alliance and the sustainable market advocacy fashion working group chaired by King Charles III and Federico Marchetti.
In addition, Deloitte also pointed out that the digital ID system is one of the efforts of the fashion working group, "a new solution that can mark luxury goods and record the details of production and sustainability certificates". Deloitte also pointed out that the influx of fake goods and the rise of secondary market transactions have promoted the application of digital tools and blockchain technologies such as "turning attention into effective solutions" by enterprises. Digital passports or digital ID cards can help customers identify the source of luxury goods, which will become a hidden pursuit.
2、 The intersection of loyalty and Web3
In addition to art related NFT, another interesting example of blockchain technology is the loyalty plan of major enterprises. In 2022, a series of brands are committed to loyalty programs. For example, Christian Dior, together with the beauty department, is committed to multi-level loyalty programs, "providing exclusive benefits to encourage consumers and rewarding the interaction between members and brands".
Retailer Rebag launched the new "advanced payment" and "expense bonus" functions, which said that "long-term retention will be greatly rewarded until long-term retention. Rebag customers will invest in the ecosystem and reinvest their payment to improve brand loyalty." Sephora's 15-year BeautyInsider plan has made it have more than 25 million members, which has great reference significance in the current market.
According to a recent report from Oracle, 71% of American customers actively participate in at least one loyalty program every month, 56% of consumers have at least one loyalty reward program application, and 62% of consumers choose the same brand because of the brand loyalty program. In 2023, efforts focused on loyalty may continue to give full play to the role of brand with the help of blockchain, because blockchain is known as a new technology that can enhance loyalty programs and improve overall operational efficiency.
The software development company Itransition suggested that the blockchain-based multi-channel network could "eliminate many inefficiencies related to the management of loyalty programs, and increase new probability for the interaction between enterprises and customers." This includes from allowing customers to exchange all loyalty rewards with a single electronic account, to ensure more accurate tracking of loyalty points and targeting customers.
In addition, according to an earlier report of Deloitte, the blockchain-based system can enable transactions with specific loyalty to be "recorded and viewed by multiple interested parties in real time", and avoid "double expenditure, fraud, abuse and other types of transaction manipulation". From the perspective of customers, there may be no friction at all.
3、 Starbucks, BMW and other brand plans
Everyone can see this example by looking at Starbucks. Starbucks launched this coffee chain last month. The test version of Odyssey makes it "one of the first enterprises to integrate Web3 technology and NFT into the industry's leading loyalty program on a large scale". Based on the application, Odyssey combines the existing Starbucks Reward Loyalty Program and the NiftyGateway platform. The program has nearly 30 million active users and has promoted about 50% of the orders of the enterprise, enabling customers to earn and purchase figures. "Stamps" and unlock "exciting new benefits and feelings".
At the same time, American Express, BMW, Singapore Airlines and other entities are also looking for blockchain-based systems to realize their loyalty and reward plans. In addition to some practical benefits, such as tracking loyalty, integrating wallet, etc., Try to be loyal and the web. The three are the cross-driving forces that deepen the connection between customers and brands.
Brady Brewer, vice president and chief marketing officer of Starbucks, said last month when reflecting on the implementation of its clear reward plan using the technology of Web Three, "Blockchain and Web Three will give our members unprecedented feeling and ownership, and Starbucks will become a more unique Starbucks.". To some extent, this is the core of most brand meta universes, Deloitte said, which can enhance their brand value and promote their website and store traffic.
To sum up, Web3 has many other potential uses, but enterprises need to choose the basic technologies that support the metauniverse and adapt to the rapid pace of technological change to activate any of them. In 2023, efforts focused on loyalty may continue to give full play to the role of brand with the help of blockchain, because blockchain is known as a new technology that can enhance loyalty programs and improve overall operational efficiency.