Imagine a digital world where everything is possible. You can be who you want to be and travel wherever you want to go – within seconds. There are no limits to your imagination.
Web3.0 makes this possible. It opens new avenues in many industries, which loyalty is an important part of. Especially the Metaverse and NFTs (Non-Fungible Tokens), which are part of Web3.0, enable this hyper-realistic digital experience. Loyalty is already a promising element in this digital world and its potential is rapidly growing. Therefore we recommend every loyalty manager to get a good understanding of this new development and its connection to loyalty.
Get to know Web3.0: Metaverse and NFTs defined
The Metaverse is a virtual world that combines elements of the internet and reality. It enables the virtual and real world to merge. Technologies like virtual reality (VR) and augmented reality (AR) make the Metaverse more interactive and realistic. Thus, users can chat and connect face-to-face, purchase goods and play games with their self-created avatars. Compared to simple video games, the Metaverse runs in real time and has its own economy. As such, it can be understood as a digital representation of our real world.
NFT (Non-Fungible Token):
For a functioning economy within the Metaverse NFTs are essential. These so-called “Non-Fungible Tokens” represent goods in the Metaverse that can be purchased using metaverse-owned currencies or cryptocurrencies as payment. Some examples for goods are concert tickets, clothes or land area. NFTs can be understood as certificates of ownership for digital files and represent a very special asset that can be clearly assigned to their buyer or owner. Due to this unique characteristic of NFTs, they can be created, purchased or sold, but not modified afterwards.
What Does Web3.0 Mean
In the case of loyalty, Web3.0 and especially the Metaverse and NFTs offer program members a high engagement with the loyalty program itself. Through the Metaverse’s own economy, companies can extend parts of their loyalty program to the digital world and use gamification elements and reward shops to engage their metaverse-enthusiastic loyalty members.
Companies in the Metaverse
Some companies have already taken the first step into Web3.0 and bought a piece of “land” on one of the large Metaverse platforms. There they place their company, hold hyper-realistic virtual workshops, organize events and enable customers to study and try out the company’s offerings in more detail before purchasing them. Here we see the potential for selling NFTs (in the form of event tickets or products) in the Metaverse and linking them to the loyalty program by earning loyalty points of the respective companies.
Companies in the Meta-Web
Another, less expensive way, which some companies have started working with, is a Metaverse-like representation of the company’s website. Website visitors can use their mouse to click through the Metaverse-like world and experience website information instead of just reading it. Due to the simplified presentation and the absence of NFTs , this is a cost-efficient and fast way to place yourself as a first mover in Web3.0! Will loyalty companies be able to link and integrate loyalty features here?
NFT as Rewards & Redemption
Secondly, customers can be rewarded with points and loyalty benefits when purchasing NFTs.
In both implementations, NFTs could be traded in the rewards store like points or status miles for other benefits. This allows companies to be highly creative and link Web3.0 to any loyalty elements of their loyalty program. In the future, you might even be able to visit such reward stores in the Metaverse!
NFT-Owners enter the loyalty program
Metaverse users do not have to be members of the company’s loyalty program. In fact, by purchasing the company’s NFTs, they automatically join the loyalty program – and even better – they automatically receive a silver membership including its status benefits. We think that this is an innovative way to attract non-members who are enthusiastic about NFTs to join a loyalty program.
Three reasons why you should
learn more about Web3.0 TODAY
Become a Web3.0 first-mover
The trend around Web3.0 is constantly growing. Although the topic is still uncharted territory for most companies, we already see immerse potential for the loyalty industry that is already being realized by first movers. The combination of loyalty and Web3.0 gives your company the chance to be a pioneer and explore the various opportunities Web3.0 has to offer.
Address upcoming generations
Work with the right Loyalty Partner
You see some additional potentials in this area? Contact us and let’s unite loyalty and Web3.0 together!
We are closely following and interpreting Web3.0 from a loyalty perspective. So, stay tuned to learn about the risks and hurdles of Web3.0 and its impact on loyalty programs.