Defining traditional loyalty programs
You have probably taken part in or at least heard about loyalty programs. But let us define it to make sure we are on the same page. A traditional loyalty program is a strategy to retain customers that includes rewarding the consumers who repeatedly interact with your brand. In fact, Shopify outlines 4 different types of loyalty programs:
- Points-based loyalty programs. Customers earn points from completing purchases, interacting with the company on social media, and other actions. Then, those points can be exchanged for discounts, freebies, cashback, and many more benefits. Very often, companies put “prices” equivalent to points and the customers can choose which benefits/prizes they want.
- Tiered loyalty programs. Customers gain different perks based on their level or tier. The higher the tier, the more perks a customer can get. Consider, for example, many airlines’ loyalty programs - the higher your tier is, you get access to business lounges, free upgrades, etc.
- Paid loyalty programs. Customers pay a fee and receive benefits from the company. Here, it is important that a company makes sure that the benefits clearly outweigh the fee. The most known example here is Amazon Prime.
- Value-based loyalty programs. In this case, a company directly contributes to charities or lets its customers do so using their loyalty points.
The truth is, customers love loyalty programs! Statistics show overwhelming numbers in sales increases. Here are the insights on what consumers value the most:

Digital collectibles: the next generation of customer loyalty
However, in the age of constantly emerging technologies, a brand new way of customer loyalty has been established. That is, digital collectibles use the technique of an NFT (asset stored in the blockchain) to create a unique or limited-edition copy of a virtual item. They bring companies even more benefits when it comes to loyalty programs. Several major companies, including Starbucks, have already witnessed significant changes after implementing digital collectibles (read more about it here). In previous blogs, we have already talked about the ways to use digital collectibles for loyalty programs (have a look here).
9 advantages of NFTs in customer loyalty
So let’s discuss the 9 advantages of using NFTs (digital collectibles) over traditional loyalty programs:
- Everything from traditional loyalty programs and more. By using digital collectibles as a base of your loyalty program, you can do all of the things that traditional loyalty programs do and beyond! For example, repeatedly purchasing customers can be awarded unique NFTs that will give them access to exclusive collaborations.
- A new source of revenue. A company might decide to continue using traditional loyalty programs, but by launching digital collectibles, that company will generate a brand new source of revenue!
- Sustainability implications. In traditional points-based loyalty programs, customers can exchange their points for physical goodies, such as merch. However, this production of large stocks of merch could have negative implications on the environment. Yet with digital collectibles, all the goodies are digital, meaning not only do they not require the extra costs to produce and store the merch, but they also are much more sustainable.
- Permamentization. While physical goodies can get lost, destroyed, and worn off, NFTs are permanently stored in the Web3. This means that you can immortalize your brand with digital collectibles!
- Safe secondary trading. Having NFTs as the base of your company’s loyalty program means that you can provide safe secondary trading of your digital collectibles. This means that your customers will enjoy supervised trading of your collectibles, thanks to the technology of smart contracts.
- Deeper connection with your clients. Immortalized digital collectibles can greatly contribute to a long-term connection between a company and its customers. That is, the two parties will have the chance to stay in touch for a much longer period, compared to the case of traditional loyalty programs.
- Emerge as a technologically innovative company. While more and more companies are starting to adopt digital collectibles, it is still a new invention. Hence, be among the first ones to launch your own collection of NFTs for your loyalty program!
- Customer data. Get valuable insights on your customers who purchase your digital tokens and integrate this data into an enhanced performance!
- Build excitement. Digital collectibles will enable you to build excitement among your customers, as the idea of possessing a unique and scarce item is highly attractive to consumers. Take a look at how Orange Comet collaborated with Scottie Pippen (an NBA star) for a drop of digital sneakers and was sold out in 77 seconds.
Launch your own digital collectibles
Authic’s white-label solution enables you to develop your own customized NFT marketplace without any coding and launch your own digital collectibles-based loyalty program. Do not wait any longer, book a free demo and we will provide you with strategic advice on how our solution can enhance your brand experience!