NFTs Driving Customer Loyalty

If you’re reading this on a phone, it’s safe to assume that you haven’t been living under a rock for the past two years. Assuming that, we can also presume that you’ve heard of NFTs.

How could you not have? They’ve been all over the news, social media, and even in pop culture. People spent nearly $41 billion on NFT marketplaces just last year.

Even if you don’t fully understand what they are or how they work, you know that they’re a big deal. And you’re not wrong. NFTs are a big deal, especially when it comes to customer loyalty.

What are NFTs?

Part of the problem with NFTs is that they’re really new. You see, the first NFT was created in 2014, and it took some time for the concept to catch on. That’s why so many people don’t understand them.

At their core, NFTs are digital assets that are stored on a blockchain. Typically, it’s a piece of digital art, music, or video that exists on the blockchain.

NFTs allow you to own a valuable piece of art, without having an actual, physical asset. They’re unique, exclusive, and rare. And that’s where the appeal comes in for many people.

NFT as a Business Asset

In the past, businesses have used things like loyalty cards, coupons, and discounts to drive customer loyalty. But these days, customers want something that appeals more to their sensibilities.

They want something that feels like it’s made SPECIFICALLY for them. McKinsey research shows that more than 80% of consumers nowadays want a personalized experience from brands. 

NFTs, offer businesses a way to do just that.

When you create an NFT, you can include anything you want. You’re not limited to pre-determined images or designs. You can be as creative as you want and really speak to your customer base.

Using NFTs for Customer Loyalty

Satisfied customers equal loyal customers. And loyal customers are worth up to 10 times as much as their first purchase, according to the White House Office of Consumer Affairs.

So, it’s in a business’s best interest to keep their customers happy and coming back for more. NFTs can help businesses do that in a few different ways:

Image Source: Pexels

If you want the customers to care about you – you need to show them that you care. Customers are 6 times more likely to work with you if they know you’re fighting for a cause they care about. 

An NFT auction is a great way to show your customers that you care. And, it’s a great way to raise money for a cause you’re passionate about.

Plus, it’s a great way to get your customers involved and invested in what you’re doing. When they see that you’re using NFTs to support a cause they care about, they’re more likely to want to support you.

• NFTs Give Brands Flexibility

Your consumer base has different segments, with different wants and needs. And, they’re all at different stages in their customer journey.

An NFT allows you to target each of these segments, with a message that’s tailored specifically for them. You can use NFTs to drive loyalty among first-time customers. Or, you can use them to show your appreciation for your most loyal customers.

You can even use NFTs to reward customers for referrals or for sharing your content. The possibilities are basically endless.

• Influencing Consumer Behavior

While it may sound strange, many brands don’t actually know why their customers buy from them. In fact, some 42% of brands don’t know what consumers want or need from them.

This lack of understanding can lead to all sorts of problems, like poor customer retention rates or low customer lifetime value.

You can use NFTs to learn more about customers. For instance, you can use it as an incentive for filling out a survey. Or, you can use an NFT to track customer behavior. That data can be invaluable in helping you understand what customers want and need from your brand.

What NFTs Mean for Customers

In the end, NFTs mean more personalized, exclusive experiences for customers. They mean being able to support brands they care about, in a more meaningful way.

And, they mean having more control over the brands they interact with.

So, if you’re a business owner, it’s time to start thinking about how you can use NFTs to drive customer loyalty. And, if you’re a customer, it’s time to start paying attention to the brands that are using NFTs.

Because, chances are, they’re the ones who really care about you.

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