Crypto-currency and NFTs have become part of the daily vocabulary on a global scale. But what are crypto-currency and NFT ? Why have these intangible assets become a global phenomenon and customer loyalty gas pedal ?

 

What is crypto-currency and NFT?

To understand the concept of crypto-currency and NFT, you need to know two things. First, there is a big difference between the two, and second, the concept of blockchain. Blockchain is a decentralized public network that stores information in a digital format. It maintains a secure record of transactions, whether it’s crypto-currency or NFT.

Crypto-currency, commonly known as crypto, is a form of digital, decentralized currency that can be used for online transactions. Crypto is stored in digital wallets and transactions are recorded in a public ledger. NFTs are digital contracts on the blockchain. An NFT security can be art, music or even an experience.

Cryptocurrencie

Digital currency and property

Most of the wealth that is saved and stored in banks is immaterial. Imagine, if all the customers of a particular bank decided to withdraw their money at the same time, the bank would most likely collapse, because the money stored in the bank is mostly immaterial. Yet we still trust the bank to protect our wealth and multiply our investments. This formula works with the modern concept of crypto-currencies and NFTs, which rely on precisely this basis of trust. NFTs also promote the idea of a circular economy (which is fundamentally regenerative in nature), separating growth from consumption of finite resources.

Why are NFTs and crypto the next trends in loyalty marketing ?

  • Relevance : In 2022, crypto-currency and NFTs have become a global phenomenon. Major brands like Coca-Cola, Louis Vuitton, NBA and Nike are exploring NFTs and crypto as part of their marketing and loyalty strategies. The sooner you jump on the bandwagon, the better. Rewarding customers with limited edition NFTs or cryptos can increase engagement and acquisition rates by making customers feel special.

NFT Coca-cola

Overview of a Coca-Cola NFT

  • Shared interest : With NFTs, customers become more involved with the brand. The customer and the brand share a common interest : the growth of the company. If the company grows, the value of the NFT increases as well. The customer becomes more invested in the brand, which provides a solid foundation for a strong brand-customer relationship.
  • Creating a community : Finally, NFTs have been able to accomplish what many marketing machines have failed to do effectively. Create a community of loyal, like-minded customers. By incorporating NFTs into your loyalty strategy, you introduce your brand to a global community. With your loyal customers, you can create your own community, stay relevant and position your brand to be part of the next big thing.

Customer Loyalty

The future of loyalty

The face of loyalty marketing is changing rapidly. As brands focus on enriching the lives of their customers and introducing crypto-currency and NFTs, it’s essential to keep up with the times and stay relevant. If you’re working to reinvent and re-launch your loyalty marketing strategy, you’ll need the experience and expertise of a loyalty partner like Target First.

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