Imagine if brand loyalty went beyond merely collecting points, instead you can own a stake or shares of your favorite brands. What if your engagement meant more than just discounts and gives you access to exclusive deals? What if it gave you influence?
Traditional brand reward programs are broken. Brands pay alot for customers to sign up, collect points, and at the end, they forget about them. The result? Low engagement, wasted incentives, and these brands still struggle to build real connections with consumers. Web3 is changing the narrative.
The introduction of AI-driven personalization, NFT-based rewards and tokenized incentive, are making loyalty programs more engaging, valuable and community-driven.
Businesses such as Visa and increasing startup Web3 companies, demonstrate that this shift is not a fad, but rather the future. Customers demand more than just benefits – they want to participate in an impactful way.
In 2025, businesses who adopt this change will not only keep customers, but will gain dedicated supporters and partners as well.
Let’s look at how AI, NFTs and Tokens can be of benefit to your business and improve customer loyalty to your brand.
Understanding the Shift from Traditional to Web3 Loyalty Programs
Traditional brand Loyalty programs present customers/consumers with points, discounts, and coupons, but often fail to foster deep relationships with customers. The case with Web3 is different, as loyalty now moves from passive involvement to interactive participation.
Instead of expiring reward points, customers are rewarded with assets they can actually use and own, such as NFTs, tokens, and exclusive brand privileges. These assets are much more than just rewards; they give consumers access, power, and economic benefits.
This change allows customers to take greater control while fostering unprecedented goodwill towards the brand. A token is tradeable, NFTs can unlock VIP privileges, and AI can dynamically tailor rewards instantaneously.
Web3 loyalty programs are not about providing a bonus to the consumer, but about placing the consumer within the brand’s universe. This initiative allowed companies to transform loyalty from a marketing gimmick into a collective experience.
AI-Driven Personalization in Loyalty Programs
Traditional programs fail to engage customers because they are treated equally and provided with discounts that do not capture their attention. However, AI helps in transforming loyalty programs by making each program tailored to individual needs.
Imagine a platform that understands your favorite activities, helps you in making plans, and rewards you at the same time. Through AI, a popular financial payment company, Visa for example has created a powerful loyalty system. They analyze purchase activity, browsing history, and interaction trends to create personalized offers to the customers that matter.
Rather than using the standard approach of providing the same value to everyone, brands can provide highly focused offers such as customized VIP event tickets, NFT drops, or token-based gifts.
Some companies have leveraged AI in their loyalty programs. Some of these includes:
- Daily Harvest: Ai-Optimized Customer Experience
Daily Harvest utilizes AI to enhance customer engagement by personalizing interactions. Using purchase history, website browsing, and dietary preferences, AI customizes meal recommendations to help customers achieve their health goals.
In addition to recommendations, AI manages packaging and logistics to minimize waste while improving productivity and delivery speed. Moreover, AI-enabled chatbots improve support by offering instant responses to customer inquiries and resolving issues quickly.
These data-backed insights increase satisfaction, improve retention rates, and establish Daily Harvest as an industry frontrunner in AI nutrition.
- Tesco: plans to significantly expand its use of artificial intelligence to personalize shopper experiences using data from its Clubcard loyalty scheme. This AI-driven personalization aims to suggest healthier choices, reduce waste, and lower shopping bills by analyzing customers’ shopping baskets, thereby improving customer loyalty and interaction with the retailer.
NFTs and Digital Ownership in Loyalty
Loyalty isn’t just about getting meaningless points anymore; it’s more about owning something. Web3 gets this done through NFTs: these digital assets are rewards that unlock real value and exclusive experiences.
For instance, if you get a Starbucks NFT that lets you gain access to exciting VIP events. Or a collectible gift from a fashion label that gets you first grabs of limited products. Unlike traditional points, which simply go away, these NFTs are valuable and permanent. Brands such as Starbucks, GQ, and Sports illustrated are already using NFTs to deepen long term relationships with customers.
This shift transforms loyalty by bringing fans from passively receiving benefits to actively engaging with the brand. Customers earn more than just rewards; they have a piece of the brand’s journey. Today as digital identities and assets become increasingly valuable, NFTs are not just a passing phase; they are going to be the future of retaining customers.
Some companies have leveraged NFTs in their loyalty programs. Some of these includes:
- Lacoste: UNDW3 NFT Collection
The famous brand Lacoste launched its unique UNDW3 collection in June 2022 by introducing 11,212 unique NFTs which appeared in the form of crocodile profile pictures and surprisingly sold out in a mere 8 hours.
This was a great move for Lacoste as it sold NFT items through UNDW3 website which also added features of rewards and co-creation tools to NFT holders. This gave them the ability to join creative sessions, contests, video games, and even chat with them in person.
- Gucci: Digital Fashion and NFTs
Gucci has been one of the first brands in the world to implement NFT strategies, and has done multiple NFT projects that include not just digital collectibles, but a variety of virtual wearable pieces aimed at capturing the elusive tech-savvy audience. These steps have further solidified Gucci’s status as a digital fashion innovator.
- AMC Theatres: NFT Movie Tickets
AMC tried using NFTs in its loyalty program by giving movie fans unique digital collectibles related to select movie launches. The motivation is to make the movie-watching experience better and strengthen the connection to the brand.
Tokenized Rewards: More Than Just Points
Tokenized rewards, infused with blockchain, are far better than traditional points which expired, in that it enables stern loyalty as a strategy instead of mere perishing benevolence.
Rather than simple points that hold no currency and invariably die out, tokenized rewards are empowering and are provided by brands that wish to earn loyal customers.
These rewards can be earned by loyal customers on staking them for products of value, trading them, or even using them as investment assets.
This innovation guarantees that customers and brands are constantly engaging with each other.
The entire system is guaranteed to foster brand ambassadors instead of passive consumers. This method allows the escape from the frantic goal of achieving loyalty and strongly encourages engagement from consumers.
Here are companies that have leveraged tokenization in their loyalty programs:
- SailGP: The Dock Token
To build customer engagement, SailGP embarked on a global sailing competition where fans were presented with ‘The Dock’ loyalty program. Here, tokens can be earned while engaging in activities of the brand along with redeemable exclusive content and merchandise rewards.
- Bilt Rewards: Renters’ Loyalty Program
Bilt Rewards has expanded customer loyalty to renters where they can avail benefits on payment of rent, fee-free. Points can be claimed for vacations, gym memberships, or a portion of a future home to increase customer retention.
Conclusion
Customers want more than lock-in from loyalty programs. Web3 has already begun shifting the paradigm of customer retention programs, replacing stale point systems with tradeable assets that customers can use, hold, or trade across ecosystems. AI personalization, NFTs, tokenized rewards – brands are building more profound and valuable connections with their customers.
Bilt Rewards is demonstrating how shifting loyalty from mere, transactional exchange is feasible, Bilt along with Lacoste and Tesco are proving how much customers want to step out of rigidly controlled brand systems. People want real value, flexibility, and exclusivity.
The brands that transition first will reap the rewards, those that are able to embrace the new technologically enabled systems of decentralization, transparency, and customer enablement will power customer engagement in the Web3 world.
The question isn’t whether businesses should adopt this shift – rather how fast can they integrate it to stay ahead. Ultimately, loyalty will not rest solely with the brands but will belong to customers themselves.
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