Part of the resistance to cryptocurrencies and digital assets in general comes from their versatility. Every time I feel like I’m about to break down, someone will contact me with a new use case for cryptocurrency.
Recently, however, Dan Jurek, vice president of strategic services for the Lacek Group, came up with some new versions of well-established use cases for digital assets. Lacek Group is a loyalty marketing agency focused on pushing consumer engagement for Fortune 1,000 companies.
Digital assets such as NFTs and cryptocurrencies not only offer new opportunities for brands to reward loyal consumers, but they keep the promise of building deeper relationships between businesses and their customers. customer.
“It feels like we’re in one of the most exciting stages in our industry because this evolving cryptocurrency and metaverse area is so perfect for what we’re doing,” Jurek said. “With a lot of technology, we can provide personalized experiences based on what we know about customers.»
In the simplest example, Jurek says that some brands use cryptocurrencies as payment methods for their customers, or use digital assets to directly reward the desired behavior of consumers. Some companies take advantage of blockchain technology itself to provide tracking, transparency, and transaction security. Others use NFTs for advertising and promotion.
As new layers of digital assets are developed and new applications are innovated, companies have a chance to move on, Jurek said.
“We’ve seen metaverse and web 3.0 being used to hide promo codes, and companies encouraging people to view and find things in the metaverse-that’s where I think there’s a lot of progress”, according to Jurek. “With NFTs, we’ve seen a relatively flooded market, but this has become the path of least resistance for companies to get involved in the space. NFTs are the way brands get their fingers crossed. feet in the water.
Jurek identifies four trends that define how companies use digital assets to engage consumers.
NFT auction for a reason
“I liken it to an art auction – people can bid on NFTs, and if you’re a higher bidder, you win the NFT,” Jurek said. “It’s been going on for some time. The real question is what will its brands do to make customers feel valued and stay in mind, and that’s why there are NFTs for a reason. It’s like a badge of honor.
If a brand auctioned off a set of NFTs to support a product cause, consumers could “wear” or display the NFT as if it were a “badge of honor,” according to Jurek. , which means that others on social media or in the metaverse can see that someone supports or is involved in a social, political or faith -based cause.
NFTs, in particular, allow brands to be flexible in what they offer to consumers, Jurek said.
For example, consider two different cosmetic consumers, Mary and Amy. Mary spends $ 5,000 a year on cosmetics, while Amy spends $ 1,000.
“Knowing this, we can vary the amount we give to each of these two NFT holders and use that for cross-selling and up-selling,” Jurek said. “So if Amy buys certain types of moisturizers, we can give her real offers and experiences – perhaps an exclusive experience with a favorite makeup artist. Since she holds NFT, it can be he was one of 50 people who could do it.
Driving the desired consumer behavior
“Actually what brands are doing now is saying‘ we want you to fill out this survey so we can better understand you, and in return we’ll give you this NFT or cryptocurrency, ’” Jurek said. “With digital assets, they can also move forward – if a consumer provides us with their information within 30 days, their NFT can be redeemed for x value of the product and an additional opportunity to purchase items. . »
In other words, digital assets can be a carrot for getting people to do the things brands want them to do.
Talking about digital carrots…
NFT refund options
Brands can enable NFTs to be redeemed for concert experiences, meetings, interior access, or product access. But in the future, consumers will have many options on how they dispose of their NFTs.
Even if NFTs are not fungible, they can still change hands like any other digital asset, and the secondary market for NFTs is still in its infancy. So let’s say Amy, from our cosmetics example, doesn’t really want her proprietary experience as a makeup artist-she can put her NFT on the secondary market and exchange it for crypto, cash, or another NFT that offers an experience of equal value.
“It will open up a world of different options for people,” Jurek said. “Let’s say I was rewarded with a trip to Hawaii through a points program, but I didn’t want to go to Hawaii. I can exchange it for you for your trip to Belize in a secondary market like Baakt. We will see more peer-to-peer commerce than ever before.
What does this mean for financial advice
The proliferation of reward programs based on blockchain and digital assets has some implications for financial advisors. On the one hand, consultants should be willing to give advice on how rewards can and should be redeemed, and they should be comfortable discussing potential trades in a second NFT market. Consultants should also be prepared to review NFT auctions for a reason and compare them to other more traditional giving experiences.
On the other hand, the financial industry may want to adopt some of the ethical shake-up methods in the broader brand universe to instill better financial ethics in their customers. This could include offering “digital carrots” for good storage, spending and investment ethics and offering NFT rewards to loyal customers by giving them access to social experiences.
By receiving consumer-focused rewards on digital assets, human advisors can find ways to reach the ethical engineering already adopted by digital investing apps like Robinhood and Betterment, and create richer, happier, and happier customers.