This Week’s Commerce Conversation: Are NFTs the Next Loyalty Currency?
DCA Members are talking to us about NFTs. Should they move fast to incorporate the new technology into their programs? Or is it a passing fad?
NFTs (short for non-fungible tokens) are being used as customer rewards. Starbucks and Visa are using NFTs as part of their loyalty programs – providing big-brand support for the trend.
What is Driving the Conversation?
NFTs give their owners unique rights to a digital asset – usually an image of some kind. An NFTs collectors’ market has sprung up, like the market for baseball or Pokemon cards. Some DCA members think this is an obvious next step in loyalty rewards: don’t just give your customers points – give them NFTs. If consumers take a liking to them, they could be motivated to build their collections
Questions Executives are Asking:
- Will consumers want to collect NFTs, and why?
- Should loyalty NFTs be easily traded to others?
- How should NFTs connect to the identity of the consumer?
- What are the risks in using NFTs as loyalty points?
- What is the first step for a company to become more involved in the NFT space?
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