Over the past 10 years, How Brands Grow has challenged our traditional way of thinking about customer loyalty. And more recently, we see further discussion of how this line of thinking looks different for digital brands – Apple, Instagram, Verizon.
Regardless of the different methods that drive customer loyalty, it’s important to evaluate how new technology might help accelerate different human behavior. For brands thinking about NFTs, the opportunity is designing a new layer of customer interaction. Ecosystem design, the walled-garden business approach Apple takes, is incredibly important here.
This means operators need to think about the key value proposition that gets people in the door. For Leisure, this was a lifetime employee discount on all of their canned drinks. Through verified NFT ownership and e-commerce authentication, any CPG company has similar capabilities.
Discounts however, is often the weakest form of loyalty. In exploring different ways people might participate with a brand through NFTs, people are able to signal their status, perspective, and loyalty to the world. This signaling is already happening with the decentralized trends we see each week on TikTok. This human truth in expressing ourselves through outward signals is the reason why we choose to stay with a certain brand (think Patagonia).
That said, if brands get their loyalty strategy right, they could unlock higher lifetime value in their customers.
But keep in mind, reach and frequency as noted in How Brands Grow is still essential for brand growth.