The Rise of Blockchain Technology in Loyalty Programs
Nike and Adidas were among the pioneers in embracing blockchain technology for their loyalty programs, creating vibrant communities around it. By integrating blockchain, Nike’s .Swoosh community, which was launched in November 2022, offers members various opportunities to connect with Nike athletes and creatives, participate in online and real-world activations, and even utilize virtual Nike gear in games. Furthermore, Nike introduced the collaborative Our Force 1 virtual collection with the community in April 2023.
Challenges in Consumer Engagement with Web3 Initiatives
Despite the undeniable success of these brands, consumer engagement with Web3 initiatives remains relatively low, primarily attracting a demographic of young, affluent, and male individuals. Moorut points out that the adoption of NFTs and ownership of crypto wallets are still limited compared to the overall population. He emphasizes that until there is a substantial shift in consumer adoption, marketers will consider such initiatives as peripheral rather than integral to most retailers’ core business operations.
Hot Take: The Future of Web3 Initiatives?
While blockchain technology has undoubtedly made strides in loyalty programs, the overall consumer adoption of Web3 initiatives is yet to reach its full potential. It will be intriguing to witness how these initiatives evolve and whether they can break through to a broader demographic. The success of brands like Nike and Adidas paves the way for further exploration and innovation in the realm of blockchain technology and its applications in marketing and customer engagement.
By
By
By
By