4 Brands That Are Successfully Tokenizing Loyalty in the Web3 Era

Starbucks, Nike, and Dolce & Gabbana are a few of the brands that have successfully begun tokenizing loyalty in the web3 era.

Loyalty programs have long been a popular way for brands to reward their devoted customers and encourage repeat business. Most of these programs involve earning a basic point for making a purchase, which can then be redeemed for a discount or free product.

However, traditional loyalty programs have fallen flat and are now perceived as negative by around 90% of consumers according to Capgemini. This is largely due to the fact that these programs feel purely transactional (you give me X and you receive Y), which doesn’t do much in terms of building a meaningful relationship with customers.

This has led many savvy brands to begin experimenting with Web3 marketing tactics, such as launching their own NFTs and hosting events in the metaverse. Now, as we enter the Web3 era, we’re beginning to see mainstream brands adopt full-scale tokenized loyalty programs as a way to bolster their customer acquisition and retention strategies.

What are Tokenized Loyalty Programs?

In search of new solutions to meaningfully engage customers over longer periods of time, many businesses are starting to roll out their own tokenized loyalty programs. This often involves the creation of their brand’s custom digital currency, such as those built through Cultos.

Brands can reward customers with their token in real-time when they complete a behavior that they want to reinforce — beyond just a purchase. This might include signing up for an email newsletter, pre-ordering a new product, or sharing the latest brand campaign on their social media page. In turn, customers can exchange their tokens for exclusive prizes or VIP perks that are determined by the brand. These rewards could include limited-edition items, brand merchandise, access to special behind-the-scenes content, or entry to brand-sponsored events.

Uninspiring cookie-cutter rewards, such as “free shipping” and “10% off your next purchase,” are a big part of the reason that customers have gone numb to traditional loyalty programs. Brand tokens open the door to relevant rewards that customers actually care about — and deepen their affinity for the brand.

The unique reward mechanism is what makes brand tokens so powerful in generating genuine customer loyalty. Tokenized loyalty programs reward customers for their continued engagement around the brand, which is far more effective than traditional “Spend to Earn” programs. The experience is often gamified, fun and social, which keeps customers loyal, incentivizes them to return to the community, and refer their own friends and family.

Starbucks

Starbucks is a great example of how a company can use Web3 technology to reward its most dedicated customers in innovative ways and inspire genuine brand loyalty. The coffee giant recently launched their Odyssey program, an experience that leverages digital collectible stamps (NFTs) that serve as an access pass to the alluring world of coffee and unique experiences with Starbucks.

Starbucks Odyssey is an extension of Starbucks Rewards that allows members to engage in different immersive experiences called “Journeys.” These interactive activities range from a virtual tour of Starbucks coffee farm Hacienda Alsacia in Costa Rica, to trivia about Starbucks heritage, to entertaining games like Starbucks For Life, and much more.

Once members complete a Journey, they will earn collectible ‘Journey Stamps’ (NFTs) and Odyssey Points that will open up a world of new benefits and immersive coffee experiences that can’t be obtained elsewhere. The more stamps members collect, the richer and more unique the rewards become. These experiences include a virtual espresso martini-making class, access to unique Starbucks merchandise and artist collaborations, and even an in-person trip to Starbucks Hacienda Alsacia coffee farm in Costa Rica.

“We are leveraging Web3 technology to reward and connect with our members in new ways, such as offering collectible, ownable digital stamps, a new digital community, and opening access to new benefits and immersive coffee experiences — both physically and digitally.”

- Starbucks CMO Brady Brewer

Nike

Nike is another notable name that’s jumped into the world of Web3 with NIKELAND, a free immersive sports space in the metaverse where customers can earn tokens that translate to currency for digital apparel. The virtual space is inspired by the original Nike headquarters and can be found on Roblox, a gaming platform that boasts over 200 million active users. Here, the brand’s biggest fans can come to meet, socialize with the community, take part in promotions, and engage with a whole range of experiences built by Nike.

Players come to NIKELAND to participate in various sports competitions with their friends and other players. The virtual world offers mini-games that range from soccer and basketball games in Nike stadiums, to various athletic and swimming events. The winners of these competitions earn rewards, which can be spent on digital products to dress their avatars.

Each member of NIKELAND receives their own “yard” — a personal space within the virtual world that’s used to show off their collectibles and decorated to suit their personality. There’s also a “digital showroom” where fans of the iconic sportswear brand can purchase any type of garment — from classics to special designs such as exclusive boots and signature sneakers.

Nike’s goal was to create a space that turns sports and gaming into a lifestyle — creating a new community around the business that expands its brand awareness and builds lifelong relationships with younger tech-savvy customers. It’s clear that Nike understands the value of personalization for the Gen Z audience and creating gamified experiences around their products.

The World’s Biggest Soccer Clubs

Many of the major European soccer clubs, including Paris Saint Germain, Manchester City, Juventus, and FC Barcelona, have launched their own “fan tokens” as a way to provide new experiences that go beyond traditional fandom. These tokens aim to bring the club’s biggest supporters even closer to the club through a range of exclusive perks, interactive games, and incredible VIP experiences.

Dedicated fans can earn these virtual tokens by participating in various mini-games, quizzes, and brand experiences. They can also be bought and sold outright as their value fluctuates depending on the available supply and demand.

Token holders receive VIP access to all home matches — but it doesn’t stop there. Holders can also spend them on exclusive rewards like official signed merch, digital collectibles, and hospitality experiences at the club’s home stadium. Those who save up their tokens can exchange them for higher-ticket experiences, such as meet-and-greet events with the club’s current players. FC Barcelona even brought out 30 token holders to Camp Nou, their home stadium, to play a match that included the recreation of a legendary goal — led by the iconic goalscorer himself, Samuel Eto’o.

What makes the experience extraordinary is that token holders also get the opportunity to influence the team with a vote on important decisions made by the club. Arsenal let its token holders vote on the song that plays every time the club wins a home match, as well as the official designs for the dressing room, team bus, special-edition jerseys, and captain’s armband. Token holders even helped the team’s manager pick the starting lineup that made it to an official friendly match.

Dolce&Gabbana

Many luxury fashion houses have launched their own NFT collections, but Dolce&Gabbana took it a step further with their #DGFamily NFT Community. The community provides an exclusive ecosystem of benefits for its loyal fans in both the physical world and metaverse. Holders of the bespoke NFT gain access to special drops and collaborations, as well as the chance to participate in unique Dolce&Gabbana events.

The digital collectible itself is a box that’s based on the classic Italian Carretto style and crafted in three increasingly rare tiers: Black, Gold, and Platinum. Each tier gives holders access to an increasingly exclusive and unique set of rewards as they take members on a special journey.

In addition to physical Dolce&Gabbana apparel, the Black Box provides access to a series of events in the metaverse, while the Gold Box provides VIP access to certain in-person events held by the brand, including upcoming Fashion Week shows and Art Basel Miami. The ultra-rare Platinum Box grants everything in the lower tiers, but also access to the rarest drops and special in-person experiences, including an intimate Dolce&Gabbana offsite.

Create a Tokenized Ecosystem That Inspires Genuine Brand Loyalty

We’re still in the early stages of the Web3 era, but early adopters have already embraced the idea of tokenizing their loyalty strategies. These engagement programs stand out because they create an entire ecosystem around the business.

Not only will brand tokens keep customers coming back regularly, but a thriving community ensures they develop a relationship and emotional connection with the brand that goes beyond just its products and services — creating genuine customer loyalty.

Launch your own brand token today with Cultos.