What: GDR reviews the examples of Starbucks, Nike and YSL and how they use NFTs to consolidate their loyalty programmes.

Why it is important: NFTs went below the radar from their 2022 fame, with Web3 is revolutionizing loyalty programs for brands by leveraging tokenization and blockchain technology to create more engaging and rewarding experiences for customers.

Digital tokens such as non-fungible tokens (NFTs) are being used to represent ownership of digital assets and access to perks in loyalty programs, with utility NFTs bridging the physical and digital worlds.

Web3 also offers advantages for building loyalty through gamifying interactions, tracking user engagement, and enabling new community interactions through decentralised autonomous organisations (DAOs).

Starbucks, Nike .Swoosh, and YSL Beauty are among the brands leveraging Web3 for their loyalty programs, with Starbucks offering interactive journeys and access to exclusive events, Nike .Swoosh building a virtual community with co-creation opportunities, and YSL Beauty using NFTs to enhance the online shopping experience and support a non-profit organization.

Web3 loyalty programmes, an introduction