How Web3 and NFTs can revolutionise the brand-customer relationship

NFTs have significant potential to enhance the relationship between brands and their customers, especially in the luxury retail and fashion industries. By providing a way to offer loyalty programs and strengthen community connections, Web3 and NFTs can allow brands to connect with their customers in a more meaningful way

How do NFTs enhance the brand-customer relationship?

A Non-Fungible Token (NFT) is a digital asset certified through blockchain technology. It consists of a digital asset, a smart contract (a computer program that automates actions on the decentralized, secure blockchain system), and a holder. NFTs are stored in a user's crypto wallet and can be transferred from one user to another within the blockchain system, preventing digital counterfeiting.

In e-commerce, NFTs can be integrated to create a more personalized customer experience. For example, a customer can access a variety of NFTs through their crypto wallet, including tokens containing their personal information, purchased products, and loyalty cards. NFTs also allow for more personalized loyalty programs within virtual worlds, strengthening the sense of community. Additionally, NFTs can help prevent the collection of personal data on merchant sites while providing a fully personalised experience for the customer.

NFTs can improve the relationship between brands and their customers by providing a new way to acquire and retain customers. These tokens can be used to create loyalty programs, reward customer engagement, offer exclusive experiences, discounts, and access to exclusive content. In this way, NFTs can strengthen the connection between brands and their customers during the acquisition and loyalty phases of the customer journey.

Offering rewards

One way that brands can use NFTs to improve customer relationships is by offering rewards and incentives. For example, Burger King used NFTs in its "Keep It Real Meals" campaign, where it embedded QR codes on popular burger and sandwich packaging. When customers scanned these codes, they could collect and trade Burger King NFTs, with the third QR code unlocking a contest for the customer to participate in. This contest offered benefits such as a free year of Whopper and the chance to receive a call from a celebrity representing the brand.

Loyalty and automation

NFTs can streamline the process of managing and attributing rewards. For instance, in the case of Keep It Real Meals, scanning 3 NFTs unlocks a 4th NFT that gives the user the chance to enter a contest and win prizes. This process is automated through the use of smart contracts, which allow assets to be automatically transferred to the consumer's crypto wallet upon scanning the NFT. This saves the brand a significant amount of time as it no longer has to manually administer the loyalty program.

A long term customer relationship

Using NFTs allows brands to maintain a connection with their customers without the risk of losing them. Customers agree to link their crypto wallet to the brand in order to receive rewards and other valuable communications. The wallet becomes the primary point of contact between the brand and the customer, and it contains a wealth of data about the user, including other forms of virtual assets such as purchase history, tickets, loyalty cards, and Proof of Attendance Protocol (POAP) certificates, which can be used to prove participation in an event. This new form of customer relationship management (CRM) is centered on the wallet rather than an email address.

One practical application of NFTs in customer relationships is the digitization of vouchers. NFTs can be used to model digital vouchers that are easy to exchange and trade, making them a more convenient alternative to paper vouchers. Brands can use NFT vouchers as a way to reward customers for their loyalty or as a means of promoting events.

Brand ambassadors

Brands can use NFTs to involve their ambassadors in the decision-making process. For example, an NFT could grant the holder the right to vote on issues such as the brand's visual identity or product roadmap priorities. This can help a brand gather valuable data from its ambassadors, who are likely to be more invested in the brand and act as advocates if they have helped shape its development. By granting these unique NFTs to brand advocates, companies can benefit from their input and recommendations.

Customer relationships in Web3

Web3 and NFTs are revolutionising the way brands can build customer loyalty. NFTs enable interoperability between platforms and facilitate the exchange of rewards between different domains. Instead of a traditional points system, brands can offer token rewards that can be used or exchanged on other platforms, both virtual and physical. This opens up new possibilities for long-term, automated loyalty programs that are more flexible and adaptable to the needs of users.

Secondary Market 

The secondary market for NFTs also introduces new dimensions to customer relationship management in the Web3 era. As NFTs are limited-edition digital goods, they can often fetch high prices, particularly if they are rare. When an NFT is resold, the original owner receives the benefits of the sale, but their relationship with the brand is terminated and transferred to the new owner. By tracking the transaction on the blockchain, the brand may be able to establish a new relationship with the consumer through their new wallet address, provided they have permission to do so.

Long story short…

In summary, as customers become more digitally connected with companies, particularly through metaverse experiences, business models and the ways in which brands connect with consumers are evolving. Brands are increasingly creating immersive and interactive experiences for customers to engage with and purchase, such as virtual asset sales, wearables, and virtual shopping environments. This type of marketing and content creation, known as direct-to-avatar, allows brands to provide a personalized and immersive experience for customers through virtual and augmented reality, gaming, and other technologies.

Web3 customer relationships are built on blockchain technology, providing a secure, transparent, and automated platform for customers to interact with businesses. This allows customers to have greater control over their data and transactions, fostering trust and transparency in their interactions with brands.