Energizing Retail Loyalty with NFTs
•Als PPTX, PDF herunterladen•
0 gefällt mir•47 views
Alexander Grover from Restack.AI, a Web3 firmed based in Oslo, Norway and Lviv, Ukraine, discusses how NFTs can be used to increase engagement within existing customer loyalty programs in the retail sector. The presentation includes 1. Problem Statement 2. Loyalty Programs 3. Web3 Gaming with examples 4. Challenges 5. Architecture 6. Reddit Collectible Avatars 7. Starbucks Odyssey 8. Summary The problem statement is: “As soon as the campaign is over, the sales drop-off!” - Hans Christian Boehlke CEO at Aldeamo (Bogotá, Columbia). Web3 Gaming examples include Alien Worlds and The Infungibles.
Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Ähnlich wie Energizing Retail Loyalty with NFTs
Ähnlich wie Energizing Retail Loyalty with NFTs (20)
Energizing Retail Loyalty with NFTs
- 1. ENERGIZING Retail Loyalty with NFTs! Alexander Grover February 7, 2023
- 2. ABOUT RESTACK.AI Restack.AI was started by two long-time friends, Steve and Alex. We noticed that many Web3 projects were slow to deliver on their promises after successfully minting millions of dollars in NFTs. The problems were rooted not only in the lack of technical competence but also in experience with Agile development best practices. So we approached them, offering our 50+ years of combined software development and project management expertise. We delivered: 2 Racing Game Battle Royale Game SSO Online Wallet Agile Coaching
- 3. ABOUT US 3 Alexander Grover Managing Partner Alex is a 25+ year experienced program manager and business leader with corporate experience at: The US Navy, Sears Holdings, BlackRock, TietoEvry, Cognizant & EPAM. His educational background includes a Bachelors in Engineering from Kansas State University and an MBA from the University of Illinois. He is responsible for sales, management and customer success. Steve Murphy Partner/CTO Steve is a 25+ years experienced software engineer with finance, gaming and public sector experience at: Funcom, Avinor, and Skandia. His educational background includes a Bachelors in Computer Science from Monash University in Victoria, Australia and Oracle certification as a Java Programmer. He is responsible for architecture and technical development.
- 4. OVERVIEW • Problem Statement • Loyalty Programs • Web3 Gaming • Challenges • Architecture • Reddit Collectible Avatars Case Study • Starbucks Odyessy Case Study • Q&A 4
- 5. PROBLEM STATEMENT “As soon as the campaign is over, the sales drop off!” - Hans Christian Boehlke CEO at Aldeamo (Bogota, Columbia) Are the customers really loyal? Discounts can affect brand integrity. The market is saturated with loyalty programs. How to stand out? How do we engage with and retain customers while maintaining brand integrity & margins? Stickiness 5
- 7. HISTORY • Loyalty programs have been around since the 18th century! • Premise for a Loyalty Program: It’s ca. five times more expensive to reach a new customer than retain an existing one. • Loyalty programs help businesses avoid high churn rates, offering existing customers a “little extra.” • In 1981, American Airlines introduced the concept of trading customer data for perks and discounts. • The sophistication of loyalty programs continues to increase! 7
- 8. TYPES • Points-based loyalty program • Most popular in retail environments • Points redeemable for a discount or complimentary product • Tiered loyalty program Earned points based on spending. Ascend levels by earning points within a given period. • Subscription-based loyalty program Requires an upfront payment Access to special services and discounts • Value-based loyalty program Does not offer explicit rewards Aligns with customers values through philanthropy 8
- 9. BENEFITS Loyalty Programs: • Increase product sales • Enhance customer analytics • Improve brand recognition • Retain existing customers Increase Stickiness! 9
- 10. WEB3 GAMING
- 11. 11 “Web 3.0 will bring about complete upheaval in the way businesses and consumers interact with each other online, making the customer experience more personalized. Users can collectively contribute to product creation, being fairly paid for their contributions as co-investors and creators with no central authority authorizing these payments” – Alexandra Pitkevich, Principal, Business Consulting, EPAM (Featured in Spiceworks, Web 2 vs. Web 3: What’s the Difference and Why It Matters Ojasvi Nath, September 7, 2022)
- 12. EVOLUTION Mach37 Content Delivery Network (1990-2005) Social Media & Content Sharing (2006-Present) Blockchain & Decentralization (Fast Approaching)
- 13. WEB3 GAMING CONCEPTS • NFTs: Independent Asset Ownership • Cryptocurrency transactions • Play to Earn (P2E) and Play and Earn (P&E) • In Game Assets & Shopping • Staking • Community Ownership & DAOs 13 Axie Infinity
- 16. WALLET LOGIN & ASSET VERIFICATION
- 17. GAMEPLAY 17 • In Game Currency called Trilium or TLM. • It has a total market cap ca. $50 million. • It can be purchased on major crypto exchanges.
- 18. STAKING 18
- 19. DAO 19
- 22. WALLET LOGIN & ASSET VERIFICATION
- 23. GAMEPLAY 23
- 25. IN-GAME STORE 25
- 26. MARKETPLACE 26
- 27. MAINSTREAM CHALLENGES • NFT is a “bad word” • Wagering & Lottery Legalities • Layperson’s understanding of the technology and tools • Bots - Design that creates an incentive for playing a single NFT vs. many 27
- 28. ARCHITECTURE Key Components & Considerations
- 29. KEY CONSIDERATIONS Loyalty → Define Retention Strategy Blockchain → Define Asset Ownership Gamification → Build Sticky Engagement Conversion → Customer Value Realization 29
- 30. GAMIFICATION OPTIONS • Racing • Competitions • Tournaments • Trading Cards • Strategy • Trivia • Tasks • Puzzles • Quests 30
- 31. Blockchain 31 Log-in USER WALLET Cryptocurrency NFT Experience Points Flair & Cosmetics User Account In-Game Currency Player Attributes In Game Marketplace Cosmetics & Flair Game Engine Trivia Games Rewards Third Party NFT Marketplaces Exchanges Web3 Game Verification
- 32. 32 Blockchain 32 SSO Log-in EXTERNAL USER WALLET Cryptocurrency NFT Experience Points Flair & Cosmetics User Account Off-Chain Loyalty Points Attributes & Preferences Third Party NFT Marketplaces Exchanges Web3 Loyalty App App Gaming Engine Trivia Games Rewards NFT Experience Points Add-Ons In-App User Wallet Card Payment Gateway In-App Marketplace Cosmetics & Flair NFTs Verification
- 33. CASE STUDY Reddit Collectible Avatars
- 34. DIVE INTO ANYTHING • Reddit is a US based social news aggregation, content rating, and discussion website. • Users are known as “Redditor(s)” • 4th most visited site in America and 6th in the world (Nov 2022). • Broken up into millions of communities known as “subreddits” • Goal is to get upvotes on submissions and comments. • The total of all upvotes is known as Karma • Reddit generated $350 million in 2021, primarily from its advertising business • Reddit has 52 million daily active users and ca. 430 million users who use it once a month • In 2020, Reddit received over 30 billion views every month • Reddit was valued at $10 billion in August 2021, almost doubling its previous valuation of $6 billion in February 2021. r/NFTApplications 34
- 35. AVATAR BUILDER • Rolled out October 2020 • Every Single Redditor has an Avatar that they can customize. • They have an easy to use in-app avatar builder. • Partly premium service with some upgrades for free. • Remains incredibly popular • Prelude to NFTs 35 r/NFTApplications
- 36. • Introduced in July 2022 • Users with high Karma received a free NFT. • Vault: Simplified in app crypto wallet. • Can trade the Collectible Avatars (NFT’s) on Open Sea. • 3M users created a wallet to trade NFTs. • $5M revenue from July 15 to Oct 31, 2022 • Reddit Creators - community and series. • Runs on the Polygon (MATIC) Blockchain 36
- 37. KEY TAKEAWAYS • Already successful with personalized & premium Avatars. • Renamed NFTs to Collectible Avatars • Access to blockchain is easy and transparent to the Redditor. • Royalty revenue from secondary sales • Engage the community with creator avatars 37
- 39. REWARDS PROGRAM • The #1 Loyalty Program in the USA: 27M active users! • The customers earn stars based on spending. • 2 Levels: Green and Gold. • Stars lead to incentives: • Free products, • Personalized rewards based on collected data, • Complimentary beverages, • Event invitations. • The Starbucks Rewards app also allows users to order and purchase products. • Customers can recharge their balances in the app. $2.1 billion in float from prepaid purchases. $1300 39
- 40. • Participate in Journeys to earn Stamps (NFTs) and points, used to access exclusive benefits. • Journey activities include: • Virtual tour of a Starbucks coffee farm in Costa Rica, • Trivia about Starbucks heritage, • Playing interactive mini-games. • As Stamps are collected, the members’ Point total will increase. • Three levels of benefits and experiences that members can unlock. • Virtual coffee-making class at the lower level, • Access to unique merchandise, • Invitations to exclusive events at Starbucks Reserve® Roasteries, • Trips to Starbucks coffee farm in Costa Rica • Customers can also purchase limited-edition stamps from the dedicated marketplace. • A portion of sales proceeds will be donated to conservation causes. • Engage with artists and creators to create the Stamps (NFTs) 40
- 41. 41
- 42. THE USER JOURNEY 42 Tom Borgers Nov 10, 2022
- 43. KEY TAKEAWAYS • Built on an existing loyalty program architecture. • Uses Polygon: a carbon-negative blockchain. • Starbucks capitalized on its intangible value. • They’ve minimized the use of Web3 jargon, • They do not require ownership or knowledge of wallets or crypto. • Implemented a philanthropy element. • No plans to allow moving NFTs outside of the ecosystem. • Hence, this could all be done as a Web2 Solution 43
- 44. POLYGON • Proof of Stake Blockchain with low fees and high throughput. • Carbon Negative - committed to buying $20M in high-quality credits. • High Profile Partnerships. • Ethereum Layer 2 Solution • Compatible with Open Sea Marketplace • Developer Friendly! 44
- 45. REVIEW •Loyalty Programs •Web3 Games Web3 Loyalty 45
- 46. THANK YOU!
- 48. CONTACT Alexander Grover Email: Alex@Restack.AI Telegram: @RestackAI
Hinweis der Redaktion
- Alexander Grover Restack AI Clients
- Discounting - It is difficult to differentiate between a truly loyal customer and those just seeking discounts. Saturation – The market is full of programs and its very difficult to captivate custoemers after a major campaign or promotion. Standing Out – All the programs look the same and people just swipe the cards without thinking about the brand. Most programs are generic and lack customization or personalization. They simply don’t interact with the customer. How to engage with and retain customers while maintaining brand integrity & Margins?
- Copper Tokens In 1793, some U.S merchants began to give their customers copper tokens to redeem in future purchases. This type of loyalty program became more popular during early to middle 19th century. Stamps Soon after, merchants realized that it was too costly to offer copper tokens as the means of loyalty program redemption. In 1896, S&H company started providing printed stamps known as S&H Green Stamps to various other businesses to use as a means to offer rewards to their loyal customers. Soon the stamps replaced the copper tokens and became the most popular loyalty program on the planet — it once issued three times as many stamps as U.S. postal service. Customers would receive S&H Green Stamps at the checkout counter in various stores from department stores to small retails. With these stamps, customers with enough green stamps could redeem products from S&H redemption center. This practice was quite popular until mid-late 20th century. Box tops During early 20th century, many companies tried to introduce new ways of implementing customer loyalty programs to the market. Box tops, the coupon printed on the package, was an individual loyalty program that Betty Crocker started to offer to its customers in 1929. These box tops coupons could later be redeemed for items that were listed on Betty Crocker’s rewards catalog. However, with the rise of other types of loyalty programs, Betty Crocker finally ended this program in 2006 after many successful decades of box tops. Cards Nowadays, most of the stores from small coffee shops to all kind of businesses provide membership cards or other types of loyalty cards to retain customers. Frequent Flier Programs Customer loyalty programs, apart from rewarding customers, were also beginning to be designed to acquire data from customers especially for airlines industry. In 1981 American Airlines introduced the very first frequent flier program, AAdvantage, to loyal customers. This frequent flier program was considered one of the most modern and comprehensive type of loyalty programs at that time. It provided customers with brand new experiences on board their flights and was recognized for its innovative approach.
- Points Based Loyalty Program (Simplest Kind) Points-based programs reward customers with points for each purchase, making them popular in retail environments, like restaurants. When customers reach a certain number of points, they can cash those points in to get a product or receive a discount. For example, Chipotle awards customers points for joining its program, and for all purchases thereafter. When customers rack up enough points, they can get free food or merchandise, among other rewards. Tiered Based Program – Uber Uber is another example of a great tiered loyalty program. Uber has four tiers. Their algorithm is for every 500 points you get $5 to spend on Uber. BLUE Is the entry-level. GOLD To achieve it, you must earn 500 points or more. At this level, you earn both perks and points. As a Gold member, you get less waiting time on customer service calls and free cancellation within the time frame of your bookings. PLATINUM To achieve it you must earn 2,500 points or more. Platinum tier grants customers access to perks such as locking prices for rides between two places, avoiding price fluctuation added to priority airport pickups. DIAMOND To reach this tier, you must earn 7,500 points or more. At this level, Uber customers gain access to dedicated phone support for fast responses and occasional free upgrades to Black Uber, three free UberEats deliveries, fast response rate, and access to top-rated drivers. Uber wants to get its customers to use the platform regularly to earn points, get rewards, and not turn to an alternative. Accordingly Uber created a tiered loyalty program to keep their customers motivated to rack up points and rise up in their tiers. It’s important to pinpoint that this Uber Loyalty Program has touched upon its most essential services and offered them as perks. They offer their customers what they would desire, special treatment, best drivers, price fixation, upgrades to better cars, and less wait time. Subscription - Amazon Prime The most widely-known example of a subscription loyalty program is Amazon Prime. Amazon has over 200 million Prime members and registered over $25 billion in annual revenue from its retail subscription fees. In the UK, Prime members pay £7.99 a month to access free delivery options including same-day, one-day, and priority. They also get access to further benefits such as streaming on Prime Video, exclusive discounts at Whole Foods Market, and free titles on Audible. Value Based Loyalty Program – The Body Shop Not all royalty programs are discount-based. Take The Body Shop’s loyalty program, for example; they built stronger relationships with customers when they made animal welfare a part of their program.You can incorporate a loyalty program based on charity. Customers are more likely to become brand loyalists if you provide mutual value. It also highlights the brand’s stance and values.
- The customer data, given at sign-up, helps businesses become smarter! Build a relationship with your customers to retain them.
- Evolution from Web1 to Web3
- P2E vs P&E – all about engagement. Reward winning but more importantly reward time on the game. Pay 2 Win Criticisms
- https://alienworlds.io/ https://wax.atomichub.io/ Asset Ownership (NFTs) Play to Earn and Play and Earn Staking Community Ownership & DAOs Seperation between user account and NFTs (Weak here, xp points are not attached to the card)
- Wallet Login Asset Ownership (NFTs) Play to Earn and Play and Earn https://alienworlds.io/ https://wax.atomichub.io/ Asset Ownership (NFTs) Play to Earn and Play and Earn Staking In Game Store Community Ownership & DAOs Separation between user account and NFTs (Weak here, xp points are not attached to the card) Marketplace
- Play to Earn and Play and Earn Staking Community Ownership & DAOs Separation between user account and NFTs (Weak here, xp points are not attached to the card)
- https://infungibles.io/ Marketplace https://magiceden.io/marketplace/the_Infungibles Asset Ownership (NFTs) Play to Earn and Play and Earn Staking Community Ownership & DAOs Seperation between user account and NFTs https://infungibles.io/ Marketplace https://magiceden.io/marketplace/the_Infungibles Asset Ownership (NFTs) Play to Earn and Play and Earn Staking In Game Store Community Ownership & DAOs separations between user account and NFTs
- Wallet Login Verify Asset Ownership (NFTs)
- Play to Earn and Play and Earn Separation between user account and NFTs (Weak here, xp points are not attached to the card)
- Staking Community Ownership & DAOs
- Discuss Stickiness
- Reddit – They managed to monetize the Rabbit Hole. Reddit is broken up into more than a million communities known as “subreddits,” each of which covers a different topic. The name of a subreddit begins with “r/,” which is part of the URL that Reddit uses. For example, r/nba is a subreddit where people talk about the National Basketball Association, while r/boardgames is a subreddit for people to discuss board games. Those are straightforward subreddits, but they can get weird, such as r/birdswitharms, a subreddit devoted to pictures of birds … with arms.
- Those Premium-only accessories will go away when your Premium expires. However, we will continue to add both free and Premium-only accessories for the foreseeable future, so stay tuned!
- Key takeaways Reddit Collectible Avatars are digital assets that were designed by independent artists and Reddit creators from popular creative communities. The avatars give users platform benefits and allow Redditors to use their avatars off of the platform however they see fit. Reddit’s marketing and UX helped make the launch a success. Reddit refers to Avatars as “collectibles” instead of “NFTs,” and created their own blockchain wallet called “Reddit Vaults.” More than 3 Million Vault wallets have been created so far. Each Reddit NFT has its own history, personality, and story, shaped by the people who contribute to the subreddits from which they originate. In other words, Reddit Collectible Avatars aren't just a digital or financial but also a social experience. Artists will get paid for every Collectible Avatar that sells on Reddit, less any fees, and are also entitled to receive royalties from secondary sales of their Collectible Avatars on secondary marketplaces that support creator royalties. This is Reddit’s second experiment with NFTs, having previously released a limited series of Ethereum-based NFTs called CryptoSnoos. The world's largest online community has become a hotbed for NFT (non-fungible token) adoption, as users are clamoring for unique avatars with their own unique stories. It is even better when the price of their avatars goes up! Having the ability to trade them, will likely motivate many to learn more about how to use digital assets in the Polygon blockchain ecosystem.
- Already successful App and Stars program
- In addition to tracking their points, users can access the menu and order before they even arrive at the cafe. “Starbucks Float” – more cash on hand than most US banks What do people do with Starbucks? They give it their money, and like 50 bucks at a time or 100 bucks at a time, and then come back and spend that money over the next month or two or three, they load that prepaid Starbucks Rewards card. Starbucks has $2.071 billion, not all that, but that is on the line item in their liabilities, stored value card liability, and current portion of deferred revenue. They can't do much with it until people spend it. But it is free money to sit in a bank and earn interest for them. As interest rates rise, that could be a nice benefit.
- Beta released on December 8, 2022, to a small group of employees and customers. Access through the existing app.
- - Grinding vs. Buying rank in the game - Marketplace does not connect with outside - All stamps will feature iconic Starbucks artwork co-created with Starbucks partners as well as outside artists - Additionally, a portion of the proceeds from the sale of limited-edition stamps will be donated to support causes that matter to Starbucks partners and Starbucks Rewards members.
- Remove