Loyalty programs have long been crucial for web2 brands to retain customers and build brand loyalty. However, traditional programs can be costly and ineffective. Many brands now explore innovative ways to incentivize customer behavior, such as using utility NFTs in loyalty programs. In this article, we will discuss the advantages of using utility NFTs, examine successful web2 brands that implemented them, and provide tips for designing effective programs.
Utility NFTs are non-fungible tokens with specific utility or functionality. Their uniqueness makes them valuable and collectible assets. In loyalty programs, utility NFTs offer customers unique rewards like exclusive events, early product access, or voting on product design decisions.
Using utility NFTs in loyalty programs has several benefits. First, they provide unique, valuable rewards to incentivize customer behavior and build brand loyalty. Second, they create a sense of exclusivity and scarcity, driving customer engagement. Finally, trading utility NFTs on secondary markets generates additional brand revenue through royalties.
Starbucks: The ‘Starland loyalty program offers customers the chance to play a game and win free coffee and Starbucks-themed utility NFTs. During the program’s first week, customers got over 200,000 NFTs that they could use to redeem prizes or trade on secondary markets.
Adidas: Adidas has launched the ALTS as the third phase in its Web3 roadmap. The program is a hyper-personalized, token-gated loyalty system that emphasizes the importance of community involvement, identity, utility, and physical product offerings. Members are represented by their ALTer ego, or avatar, which makes the program more personalized. The program focuses on creating a sense of community and usefulness for its members, while also offering physical products.
Sephora: Sephora “NFT Beauty Insider” loyalty program, allowed customers to earn utility NFTs by completing beauty and skincare challenges. Younger customers found these NFTs popular as they could use them to redeem rewards or trade them on secondary markets.
To create effective utility NFT loyalty programs, ensure rewards are valuable and unique. Align the NFTs’ design with the brand’s values and messaging, and make NFT distribution clear and accessible. Encourage customer engagement through challenges or social media campaigns, and allow the trade NFTs on secondary markets.
In conclusion, implementing utility NFTs in loyalty programs effectively incentivizes customer behavior and builds brand loyalty. By offering unique rewards, brands distinguish themselves from competitors and create a sense of exclusivity. To design a practical utility NFT loyalty program, consider rewards, distribution, aligning brand values, promoting customer engagement, and tracing transactions on secondary markets. By following these tips, web2 brands can establish loyalty programs that benefit both the brand and its customers.
Need help figuring out how to start? At Enefty, we have already launched dozens of loyalty programs for companies from multiple industries. We are a web3-powered membership platform. Our team will help you supercharge loyalty and reinvent the connection between your brand and customers. Contact us and get started today.
Enefty Technologies UG. (haftungsbeschränkt)
c/o Giorgi Jashiashvili Weitlingstr.93, 10317 Berlin, Germany
Among the types of Personal Data that this Application collects, by itself or through third parties, there are: Tracker; Usage Data; email address.
Personal Data may be freely provided by the User, or, in case of Usage Data, collected automatically when using this Application.
Unless specified otherwise, all Data requested by this Application is mandatory and failure to provide this Data may make it impossible for this Application to provide its services. In cases where this Application specifically states that some Data is not mandatory, Users are free not to communicate this Data without consequences to the availability or the functioning of the Service.
Users who are uncertain about which Personal Data is mandatory are welcome to contact the Owner.
Users are responsible for any third-party Personal Data obtained, published or shared through this Application and confirm that they have the third party’s consent to provide the Data to the Owner.
The Owner takes appropriate security measures to prevent unauthorized access, disclosure, modification, or unauthorized destruction of the Data.
The Data processing is carried out using computers and/or IT enabled tools, following organizational procedures and modes strictly related to the purposes indicated. In addition to the Owner, in some cases, the Data may be accessible to certain types of persons in charge, involved with the operation of this Application (administration, sales, marketing, legal, system administration) or external parties (such as third-party technical service providers, mail carriers, hosting providers, IT companies, communications agencies) appointed, if necessary, as Data Processors by the Owner. The updated list of these parties may be requested from the Owner at any time.
The Owner may process Personal Data relating to Users if one of the following applies:
Users have given their consent for one or more specific purposes. Note: Under some legislations the Owner may be allowed to process Personal Data until the User objects to such processing (“opt-out”), without having to rely on consent or any other of the following legal bases. This, however, does not apply, whenever the processing of Personal Data is subject to European data protection law;
provision of Data is necessary for the performance of an agreement with the User and/or for any pre-contractual obligations thereof;
processing is necessary for compliance with a legal obligation to which the Owner is subject;
processing is related to a task that is carried out in the public interest or in the exercise of official authority vested in the Owner;
processing is necessary for the purposes of the legitimate interests pursued by the Owner or by a third party.
In any case, the Owner will gladly help to clarify the specific legal basis that applies to the processing, and in particular whether the provision of Personal Data is a statutory or contractual requirement, or a requirement necessary to enter into a contract.
The Data is processed at the Owner’s operating offices and in any other places where the parties involved in the processing are located.
Depending on the User’s location, data transfers may involve transferring the User’s Data to a country other than their own. To find out more about the place of processing of such transferred Data, Users can check the section containing details about the processing of Personal Data.
Users are also entitled to learn about the legal basis of Data transfers to a country outside the European Union or to any international organization governed by public international law or set up by two or more countries, such as the UN, and about the security measures taken by the Owner to safeguard their Data.
If any such transfer takes place, Users can find out more by checking the relevant sections of this document or inquire with the Owner using the information provided in the contact section.
Personal Data shall be processed and stored for as long as required by the purpose they have been collected for.
Personal Data collected for purposes related to the performance of a contract between the Owner and the User shall be retained until such contract has been fully performed.
Personal Data collected for the purposes of the Owner’s legitimate interests shall be retained as long as needed to fulfill such purposes. Users may find specific information regarding the legitimate interests pursued by the Owner within the relevant sections of this document or by contacting the Owner.
The Owner may be allowed to retain Personal Data for a longer period whenever the User has given consent to such processing, as long as such consent is not withdrawn. Furthermore, the Owner may be obliged to retain Personal Data for a longer period whenever required to do so for the performance of a legal obligation or upon order of an authority.
Once the retention period expires, Personal Data shall be deleted. Therefore, the right of access, the right to erasure, the right to rectification and the right to data portability cannot be enforced after expiration of the retention period.
The Data concerning the User is collected to allow the Owner to provide its Service, comply with its legal obligations, respond to enforcement requests, protect its rights and interests (or those of its Users or third parties), detect any malicious or fraudulent activity, as well as the following: Analytics, Managing contacts and sending messages, Heat mapping and session recording and Tag Management.
For specific information about the Personal Data used for each purpose, the User may refer to the section “Detailed information on the processing of Personal Data”.
Detailed information on the processing of Personal Data
Personal Data is collected for the following purposes and using the following services:
The services contained in this section enable the Owner to monitor and analyze web traffic and can be used to keep track of User behavior.
Google Analytics is a web analysis service provided by Google LLC or by Google Ireland Limited, depending on the location this Application is accessed from, (“Google”). Google utilizes the Data collected to track and examine the use of this Application, to prepare reports on its activities and share them with other Google services.
Google may use the Data collected to contextualize and personalize the ads of its own advertising network.
Personal Data processed: Tracker; Usage Data.
Heat mapping services are used to display the areas of this Application that Users interact with most frequently. This shows where the points of interest are. These services make it possible to monitor and analyze web traffic and keep track of User behavior.
Some of these services may record sessions and make them available for later visual playback.
Hotjar is a session recording and heat mapping service provided by Hotjar Ltd.
Hotjar honors generic „Do Not Track” headers. This means the browser can tell its script not to collect any of the User’s data. This is a setting that is available in all major browsers. Find Hotjar’s opt-out information here.
This type of service makes it possible to manage a database of email contacts, phone contacts or any other contact information to communicate with the User.
These services may also collect data concerning the date and time when the message was viewed by the User, as well as when the User interacted with it, such as by clicking on links included in the message.
Mailchimp is an email address management and message sending service provided by The Rocket Science Group LLC.
Personal Data processed: email address.
This type of service helps the Owner to manage the tags or scripts needed on this Application in a centralized fashion.
This results in the Users’ Data flowing through these services, potentially resulting in the retention of this Data.
Google Tag Manager is a tag management service provided by Google LLC or by Google Ireland Limited, depending on the location this Application is accessed from.
Personal Data processed: Usage Data.
Users may exercise certain rights regarding their Data processed by the Owner.
In particular, Users have the right to do the following:
Where Personal Data is processed for a public interest, in the exercise of an official authority vested in the Owner or for the purposes of the legitimate interests pursued by the Owner, Users may object to such processing by providing a ground related to their particular situation to justify the objection.
Users must know that, however, should their Personal Data be processed for direct marketing purposes, they can object to that processing at any time without providing any justification. To learn, whether the Owner is processing Personal Data for direct marketing purposes, Users may refer to the relevant sections of this document.
Any requests to exercise User rights can be directed to the Owner through the contact details provided in this document. These requests can be exercised free of charge and will be addressed by the Owner as early as possible and always within one month.
The User’s Personal Data may be used for legal purposes by the Owner in Court or in the stages leading to possible legal action arising from improper use of this Application or the related Services.
The User declares to be aware that the Owner may be required to reveal personal data upon request of public authorities.
For operation and maintenance purposes, this Application and any third-party services may collect files that record interaction with this Application (System logs) use other Personal Data (such as the IP Address) for this purpose.
More details concerning the collection or processing of Personal Data may be requested from the Owner at any time. Please see the contact information at the beginning of this document.
This Application does not support “Do Not Track” requests.
To determine whether any of the third-party services it uses honor the “Do Not Track” requests, please read their privacy policies.
Should the changes affect processing activities performed on the basis of the User’s consent, the Owner shall collect new consent from the User, where required.
Any information that directly, indirectly, or in connection with other information — including a personal identification number — allows for the identification or identifiability of a natural person.
Information collected automatically through this Application (or third-party services employed in this Application), which can include: the IP addresses or domain names of the computers utilized by the Users who use this Application, the URI addresses (Uniform Resource Identifier), the time of the request, the method utilized to submit the request to the server, the size of the file received in response, the numerical code indicating the status of the server’s answer (successful outcome, error, etc.), the country of origin, the features of the browser and the operating system utilized by the User, the various time details per visit (e.g., the time spent on each page within the Application) and the details about the path followed within the Application with special reference to the sequence of pages visited, and other parameters about the device operating system and/or the User’s IT environment.
The individual using this Application who, unless otherwise specified, coincides with the Data Subject.
The natural person to whom the Personal Data refers.
The natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of Personal Data, including the security measures concerning the operation and use of this Application. The Data Controller, unless otherwise specified, is the Owner of this Application.
The means by which the Personal Data of the User is collected and processed.
The service provided by this Application as described in the relative terms (if available) and on this site/application.
Unless otherwise specified, all references made within this document to the European Union include all current member states to the European Union and the European Economic Area.
Cookies are Trackers consisting of small sets of data stored in the User’s browser.
Tracker indicates any technology – e.g Cookies, unique identifiers, web beacons, embedded scripts, e-tags and fingerprinting – that enables the tracking of Users, for example by accessing or storing information on the User’s device.
This privacy statement has been prepared based on provisions of multiple legislations, including Art. 13/14 of Regulation (EU) 2016/679 (General Data Protection Regulation).
These Enefty Platform Terms (these “Terms”) apply between Enefty Technologies UG (haftungsbeschränkt) (“Enefty”) and the users of the Platform (“User”).
In these Terms, the following legal definitions apply:
“Account” means a User’s account on the Platform.
“Auction” means the event carried out on the Platform by means of which NFTs are sold/purchased at an auction.
“Bidder” means a User who participates in an Auction by submitting a bid in order to purchase an NFT.
“Commission” shall have the meaning as set forth in Clause 5.1.
“Creator” means the person who owns the copyright in the Media and/or in the NFT offered on the Platform.
“Enefty” shall have the meaning as set forth in Clause 1.
“Fixed-price Sale” means the event carried out on the Platform by means of which NFTs are sold/purchased for a pre-defined price.
“Platform” means the online platform operated by Enefty facilitating the sale/purchase of NFTs.
“Media” means any Seller-owned audio-video, images, names, titles and audio files associated with the NFT sold/purchased on the Platform.
“NFT” means any blockchain-tracked, non-fungible token.
“Purchaser” means a Bidder who wins an Auction in accordance with Clause 4 or a User who purchases an NFT on a Fixed-price Sale.
“Purchase Price” means the price actually received by the Seller from the Purchaser on the basis of a Sales Contract.
“Sales Contract” means the contract between the Seller and the Purchaser on sale/purchase of NFT(s).
“Seller” means a User who (i) is the Creator or a person authorized by the Creator for sale, and (ii) offers an NFT on the Platform for sale.
“Terms” shall have the meaning as set forth in Clause 1.
“User” shall have the meaning as set forth in Clause 1.
“Wallet” means a crypto wallet of the User.
3. Scope of User’s Account on the platform
3.1 The User’s Account on the Platform will be associated with the User’s linked blockchain address and display the NFTs for that blockchain address (and, if applicable, any content associated with such NFTs).
3.2 By using the Wallet in connection with the Enefty, the User agrees to be using that Wallet under the terms and conditions of the applicable provider of the Wallet.
3.3 Wallets are not operated by, maintained by, or affiliated with Enefty, and Enefty does not have custody or control over the contents of the Wallet and has no ability to retrieve or transfer its contents. Enefty assumes no responsibility for, or liability to User, in connection with User’s use of Wallet and gives no representations or warranties regarding how the Platform will operate with any specific Wallet.
3.4 User is solely responsible for its Account and any associated Wallet and Enefty is not liable for any acts or omissions by User in connection with User’s Account or as a result of User’s Account or Wallet being compromised. User should immediately notify Enefty in writing (simple e-mail to be sufficient) in case of discovering or otherwise suspecting any security issues related to the Platform or User’s Account.
4.1 The technical processing of a sale is described on the Platform. The Users shall abide by all instructions contained on the Platform in this connection.
4.2 A sale can take place either in the form of a fixed-price sale or in the form of an Auction. In both cases, a Sales Contract is concluded between the Seller and the Purchaser. The processing of an Auction is further described in Clauses 4.3 and 4.4.
4.3 Within 5 calendar days after completion of the relevant Auction, the Seller is entitled to select a Bidder to become the Purchaser of the respective NFT, as a result of which a Sales Contract is concluded between the Seller and the Purchaser. In the event that the Seller fails to make a decision within the time period defined in this Clause 4.3, the Auction shall be deemed canceled.
4.4 In the event that the Purchaser as selected by the Seller under Clause 4.3 fails to pay the Purchase Price to the Seller, the Seller is entitled to decide whether (i) to select another Bidder, or (ii) to cancel the Auction. The Bidders hereby agree and acknowledge that they may become a Purchaser even if they have not been selected by the Seller in the first place under Clause 4.3. In the event that the Seller fails to make a decision within the time period defined in this Clause 4.3, the Auction shall be deemed canceled.
4.5 The User acknowledges that, in respect of a Sales Contract, Enefty only acts as a broker and shall not become a contracting party to any Sales Contract. Therefore, Enefty is not liable to a User for any obligations out of or in connection with a Sales Contract, including but not limited to for any benefits and perks promised by a Seller to the prospective Purchaser in the course of the sale of an NFT.
5.1 For the introduction of opportunities to enter into Sales Contracts and/or for the facilitation of such Sales Contracts, Seller shall pay to Enefty a commission in the amount of 5% of the Purchase Price (“Commission”).
5.2 Enefty shall be entitled to retain the Commission from the Purchase Price paid by a Purchaser to a Seller by means of a payment method provided for on the Platform. In the event that the Seller receives the full Purchase Price from a Purchaser directly, the Seller shall pay the Commission to Enefty within 30 days following the Seller’s receipt of a corresponding invoice from Enefty.
5.3 Any action of Enefty that may be deemed a contributory cause for the conclusion of a Sales Contract shall entitle Enefty to the Commission. In particular, Enefty shall be entitled to the Commission even if Seller and a Purchaser conclude a Sales Contract outside the Platform. Seller shall immediately notify Enefty of such Sales Contracts.
5.4 Subject to Clause 3.3, a subsequent change to or subsequent ineffectiveness of a Sales Contract, including but not limited to rescission (Rücktritt), withdrawal (Widerruf), avoidance (Anfechtung), mutual cancellation (Aufhebungsvertrag), the triggering of a condition subsequent (auflösende Bedingung), etc. shall not affect Enefty’s right to the Commission.
5.5 Subject to Clause 3.3 any subsequent reduction of the Purchase Price (e.g. by means of a subsequent mutual agreement or by a unilateral price reduction under statutory law) shall not affect the amount of the Commission.
6.1 Seller shall, in a timely manner and in the format requested by Enefty in each case, provide Enefty with all information and documents required under this Agreement, including any and all information pertaining to the Sales Contracts and the Commission.
6.2 Seller represents and warrants that (i) it is the Creator of the NFT offered by it on the Platform or a person authorized by the Creator for sale, (ii) the Media related to the NFT is not subject to any third party rights and that any documentation, and (iii) the information provided by Seller on the Media is accurate, true and complete. Seller shall indemnify and hold harmless Enefty from any third party claims in that respect including but not limited to appropriate costs of legal defense and prosecution.
6.3 For the period of time in which a sale/purchase of an NFT is processing, Seller shall, without the prior written consent of Enefty (simple email sufficient), not be entitled to (i) sell or seek to sell the respective NFT outside the Platform, (ii) sell or seek to sell another NFT of the same Media outside the Platform, and (iii) create another NFT of the same Media.
7.1 German Law shall apply. The place of jurisdiction for all disputes arising out of or in connection with these Terms shall be Berlin, Germany.
7.2 The Users may only set off their claims against those of Enefty or exercise a right of retention to the extent that the User’s claims have been finally determined in a binding judgment which is not subject to appeal, or are undisputed or accepted.
7.3 In the event that a provision of these Terms is or becomes wholly or partially invalid or void, the validity of the remaining provisions of these Terms shall not be affected. In place of the invalid or void provisions, statutory law shall apply.
Enefty Technologies UG (haftungsbeschränkt)
c/o Giorgi Jashiashvili
Commercial Register: HRB 232814 B
Registration court: Amtsgericht Charlottenburg
Sales tax identification number according to § 27 a of the Sales Tax Law:
The European Commission provides a platform for online dispute resolution (ODR): https://ec.europa.eu/consumers/odr/.
Our e-mail address can be found above in the site notice.
We are not willing or obliged to participate in dispute resolution proceedings in front of a consumer arbitration board.
As service providers, we are liable for own contents of these websites according to Paragraph 7, Sect. 1 German Telemedia Act (TMG). However, according to Paragraphs 8 to 10 German Telemedia Act (TMG), service providers are not obligated to permanently monitor submitted or stored information or to search for evidences that indicate illegal activities.
Legal obligations to removing information or to blocking the use of information remain unchallenged. In this case, liability is only possible at the time of knowledge about a specific violation of law. Illegal contents will be removed immediately at the time we get knowledge of them.
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