Brands Embrace Crypto and NFT Loyalty
Starbucks made big news last month when it added an NFT component to its massive Starbucks loyalty rewards program, but it’s far from the only big brand jumping on the growing NFT bandwagon with both feet.
From Budweiser and GameStop to eyewear retailer Warby Parker, non-fungible tokens that can feature anything from collectable profile picture (PFP) characters to artwork, music and video are being embraced by companies looking to attract new customers and retain existing ones.
Read more: Starbucks launches loyalty program built on NFT Tech
But while Starbucks offers special, resellable NFTs, Budweiser is one of a number of brands, including Pinkberry and music festival Bonaroo, working with startup Hang, which uses an NFT membership platform and card to collect and spend points earned through a variety of methods , including spending, events, referrals and social media engagement.
Benefits may include standard points-based and tiered rewards, as well as discounts, events and access to special offers.
“NFTs create a way for brands to incentivize their users to not only rank up to a new level in the program, but actually appreciate the value of the asset they own,” Hang Co founder and CEO Matt Smolin told CNBC in July. These NFTs can also be resold on marketplaces, he added.
Then there’s Autograph, NFL legend Tom Brady’s latest venture into the crypto space – he’s already a spokesperson and shareholder in the FTX exchange – which the company hopes could be “the future of fandom”.
It will offer experiential pricing such as access to exclusive events, limited edition digital and physical merchandise, private social media channels and forums.
Launched in August was The Huddle, an NFT that evolves as Brady’s 2022-2023 season progresses, as well as a way to access real-world and digital events, limited-edition digital content, merchandise and access to NFTs for season highlights.
The goal, Autograph CEO Dillon Rosenblatt said in a statement, is to change today’s fandom, which “remains a limited, one-way conversation between fans and their idols” into “a richer, more interactive, community-driven experience.”
And GameStop is adding an NFT component to its loyalty program by offering members digital trading cards that can be used in the blockchain-based game “Gods Unchained” — which can also be purchased, CNBC reported last month.
Point the way
And it’s not just NFTs. A growing number of companies, especially debit and rewards card issuers, are embracing the idea of loyalty programs that allow customers to redeem their points in cryptocurrencies, seeing it as a way to attract crypto owners as PYMNTS US Crypto Consumers Study found earlier this year. had reached nearly 60 million Americans.
See also: The data point: 23% of US consumers owned cryptocurrency in 2021
While most of the crypto debit cards issued by cryptocurrency exchanges like Coinbase, Gemini, and Crypto.com offer cash-back rewards in a variety of digital assets, so do FinTechs like Venmo and SoFi. But a growing number of mainstream banks are embracing it as a rewards option.
Offering crypto rewards could be what Scott Young, vice president of innovation and design at payments organization PSCU, called “crypto lite,” explaining that it’s a way to “offer at least some kind of crypto service without a lot of the inherent risk of” a full purchase -hold-sale-offer.
Also read: Short-term crypto uncertainty is long-term credit union opportunity
For customers, he added, it’s a way to dip a toe into crypto ownership without actually spending money on their own.
But it’s not just cards. In March, Shake Shack ran a promotion offering bitcoin rewards to customers who paid with the Blocks Cash App Cash Card or with its Cash Boost rewards program points.
See more: Shake Shack is testing crypto rewards to gauge customer interest
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