What are your thoughts on Web3 transforming brand loyalty?

Is it overhyped?

VISA is expanding its reach into the Web3 space with the launch of a Web3 loyalty service for brands.

Traditional loyalty programs often lack personalization and engagement. Their primary focus is on increasing transactions, a process that can feel impersonal.

The aim of Web3 based loyalty programs is to significantly foster customer engagement and retention through personalized and seamless experiences.


But can this succeed?

I deeply believe in Web3, but maintain a critical view on Web3 loyalty programs, including loyalty programs in general. This is due to aspects rooted in human and brand behaviors.

🔸 For traditional brands, it demands teams that are trained and eager to participate in the transition to Web3.

🔸 The key shift involves transitioning from a focus on impersonal transactions to cultivating genuine engagement through community-based interactions.

🔸 If Web3 loyalty programs aren’t nourished and fostered towards their intended goal, brands risk ending up with mere transactions and points, similar to traditional loyalty programs.

🔸 Loyalty isn't built through loyalty programs. Loyalty to a brand develops organically over time, rooted in the brand’s products and shared values.

🔸 Customers may simply buy the brand for its great products and services. A fact that is often overlooked.

🔸 Loyalty programs might not be a solution to be considered for smaller brands. Due to their limited market visibility and smaller customer base, they might find more value in other marketing activities.

It’s not about blindly jumping onto the bandwagon but rather considering how Web3 can leverage the brand’s essence.

What is your perspective on this?

Thanks for reading!

Patrick

"𝘋𝘳𝘪𝘷𝘦𝘯 𝘣𝘺 𝘢𝘯𝘥 𝘥𝘦𝘷𝘰𝘵𝘦𝘥 𝘵𝘰 𝘤𝘳𝘢𝘧𝘵𝘪𝘯𝘨 𝘚𝘶𝘴𝘵𝘢𝘪𝘯𝘦𝘥 𝘉𝘳𝘢𝘯𝘥 𝘎𝘳𝘰𝘸𝘵𝘩"