Non-Fungible Tokens (NFTs)
This example only shows the NFTs. All other parts of a loyalty program are brand specific and therefore not part of this illustration.
A non-fungible token (NFT) is a digital unit of data that is stored on a decentralized database, otherwise known as the blockchain. These NFTs can either be a digital ‘twin’ of a physical item, for instance, a digital model of a watch or car. Alternatively, an NFT can simply represent a unique digital item, such as a digital piece of art (Beeple).
An NFT is a digital asset that can come in the form of art, music, in-game items, videos, and more. They are bought and sold online, frequently with cryptocurrency and they are generally encoded with the same underlying software as many cryptos. Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another. NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible).
There are various avenues that can be explored through NFTs - virtual assets, arts/collectibles, and event tickets. NFTs can be a game changer for your loyalty program. You can incentivize your loyal members by allowing them to use your loyalty point to redeem an NFT which can be used as a collectible. NFTs can also be used as a digital twin by using it to complement your loyalty program by enhancing brand trust and thus increasing general customer satisfaction.
The first step is always to create your loyalty point in the Loyalty Admin Dashboard (LAD). Once the loyalty point is active, you'll unlock the NFT section and can from now on create and manage NFTs for your loyalty program. Go to that section, and follow the steps below:
- 1.Click on “+Create new NFT” to create and publish a new NFT.
- 2.Upload the media file (image, video, audio, or 3D model) that you wish to use for your NFT.
- 3.Give your NFT a name and choose the type.
- 4.Choose if the NFT is visible for other brands to buy or it's only for your members.
- 5.Add optional information such as a description or exclusive content. This content will be visible on the NFT details screen.
- 6.Decide whether you want to display your NFT in your Loyalty Program. This can be changed later in the NFT's details screen.
While you have the full freedom of choice when creating NFTs, here are some tips to follow:
Include exclusive content that can only be revealed by the owner of the NFT to create additional value for your VIP members.
Enter a point-value (USD) and toggle on "Show NFT in LWA" to automatically list the NFT in the redemtpion shop of your LWA.
Activate "User transfer" to allow NFT holders to transfer their NFT to another member of your loyalty program.
Activate "User sale" to allow NFT holders to sell their NFT to another member of your loyalty program through the redemption shop
Enter a "User sales fee" to burn points for free. Whenever a user sells his NFT, a percentage of the points used to buy the NFT will be sent back to the loyalty program owner as a fee.
Once you entered all NFT details and submitted the NFT creation request, the NFT will be minted automatically on the qiibee blockchain. The status switches from
activeas soon as the minting process is completed.
activeNFTs can now be transferred via the Loyalty Admin Dashboard (LAD) itself or through the qiibee API. They'll also automatically show up in your LWA in case you use an LWA and you selected the "Yes" option in the "Show NFT in LWA" input.
activeNFTs will be displayed in the NFTs list in the LAD. From this list, you can sort and filter your NFTs by status to easily manage and organize your collection. To view the details of a specific NFT, simply click on the image or the "Details" button.
If you have opted to make your NFT publicly visible to other brands during the creation process, it will be displayed in the Marketplace section. The NFT card will showcase all relevant details, including the price that you have set as the "Point value". Additionally, it will feature a "Buy" option that enables other brands to purchase your NFT and display it in their LWA for their members.
The goal of the overview screen is to introduce end users to the NFTs and its benefits. You can directly send an NFT to the user which will then be displayed in the "Your NFT collection" section through the LAD or API.
If the existing app supports custom notifications, use them to introduce the users about the NFTs. If the existing app doesn't support custom pop-ups - default alerts, emails or push notifications can be used.
If you activate the "Show NFT in LWA" toggle in the LAD and enter a "Point-value", the NFT will automatically be listed in the "Redeem your points" section and your members can get the NFTs by redeeming loyalty points for it.
NFTs will be listed with a badge “NFT” on the top left of the item listed along with the other coupons & rewards. When clicking on an NFT, the user will also see whether this NFT offers exclusive contents and exclusive content status (Available/ Redeemed), meaning whether this exclusive content has already been claimed (e.g. concert tickets).
When the member clicks on the redeem button, the loyalty points will be deducted from his account and the NFT will be sent and visible in the NFT section of the LWA. This transaction will also show up in the LAD and you'll also always see all the owners of your NFTs.
In this section, your members will see all the NFTs they possess. To access the details screen for a specific NFT, click on the image of the NFT from the NFTs list on the LWA.
The NFT details screen provides a wealth of information about the NFT, including its name, media file, description and more. In case the NFT contains exclusive content (e.g. concert tickets), the member can claim it here.
If your NFT contains exclusive content (e.g. concert tickets), you can select the status of the exclusive content within the LAD. In case the current owner claimed the content and it cannot be claimed again (e.g. concert tickets), simply switch the status to "Redeemed" to keep track of it as well as informing potential future owners that this content has already been claimed.
qiibee does not force you to use a specific method for redeeming the exclusive content as it'll vary from case to case. Therefore, always make sure to also describe how the owner of the NFT can claim his exclusive reward (e.g. add an email address on which they can contact you which only the NFT owner will see).
If enabled, NFT holders will be able to transfer their NFTs to other members of your loyalty program. All the current holders of your NFTs will always be visible in the LAD.
If the "User Sale" switch is toggled on, your loyalty member who holds that NFT in their account on the LWA will able to sell the NFT to other members of your loyalty program. The holder will only be able to sell the NFT for an amount of your loyalty points. This way, you keep the NFTs and members in your loyalty program while creating more engagement. In case the loyalty program member wants to cancel the sell listing at any time, they can do so by clicking the "Cancel Listing" button in the NFT details screen.
In case you set a "User sales fee" in the LAD, the fee will be deducted automatically from the amount of loyalty points the seller will receive.
The NFTs listed for sale will automatically be displayed in the Redemption section of the LWA.
In case you have your own frontend and integrate the qiibee API, make sure to follow a similar user experience as explained above.
Check out how other brands are leveraging NFTs in their loyalty program, get more info in the two blog posts below, check out the difference between private and public NFTs or directly book a demo with us to understand everything.
Coffee Giant Starbucks announced its Odyssey experience. The loyalty program will allow its members to earn and buy NFTs through activities, such as playing interactive games related to their knowledge on coffee and Starbucks.
Louis Vuitton is celebrating its 200th anniversary with the launch of Louis: The Game. Players have the opportunity to receive one of 30 limited edition NFTs through various quests. Released nine months ago, the game has now had more than two million downloads.
Clinique holds a competition for members of the Smart Rewards program. Three winning Smart Rewards members are awarded a limited edition NFT, early access to new physical products, and various Clinique products once a year for the next decade.