*RESPOND TO 2 STUDENTS' POSTS*

Article:

Recycle a plastic bottle, get a token. Come into an Adidas shop, get a cool sports NFT. What would the world look like if we were rewarded for being good customers beyond coupons and discounts? This past year, musicians found a way to reward their fans for their loyalty by offering them non-fungible tokens (NFTs), which are essentially blockchain records certifying the uniqueness of a specific asset. In a recent example, the band Kings of Leon not only released its album as an NFT, but also granted fans a chance to win one of six golden-ticket NFTs. The tickets offer VIP perks for future concerts, such as lifetime front-row seats. In addition to those, the band offered a number of open edition NFTs that come with special artworks. Should artists find success utilizing NFTs to connect with their fans, its not hard to imagine businesses following suit. NFTs could very easily become commonplace as a strategic tool for brands to strengthen relationships with their customers, replacing traditional loyalty-reward programs that are some of the oldest customer-loyalty tricks in the book.

NFTs are reviving lackluster loyalty-reward programs

Loyalty programs are a great idea on paper a way to reward customers for their loyalty to a brand while giving them a reason to shop beyond the appeal of the products themselves. However, loyalty points have lost their appeal, with 38% of consumers surveyed saying they aren't interested in joining loyalty programs, according to a study by CFI Group and Radial. According to the report, consumers are reluctant to join loyalty programs because they feel the value they offer is not worth the time, money or effort of signing up. Loyalty programs arent going away anytime soon, but they need a revamp in order to be able to offer customers more than just points for future use. NFTs can easily fill in this void, as they offer customers more options than simply using points. Customers can use NFTs in a number of different ways and for different companies, allowing potential collaborations across different industries. They are also a safer option because NFTs use smart contracts on the blockchain as a way to securely execute and trace transactions. As a result, retailers can reduce system-management costs, and the system is more secure and trustworthy.

Keeping customers in the community from gamification to NFTs

Brands understand the importance of customer engagement, and they put effort into interacting with their customers on social-media pages, inviting customers to like their pages and comment on posts. When social platforms like Facebook were just starting out, liking a certain brand was less of a way to show support for a brand and more of a way to signal to others brand affiliation. NFTs can solve this problem by offering a way for customers to interact with brands in a new and innovative way. Companies are strengthening their connection with customers by offering loyalty rewards with the use of gamification. The Starbucks Rewards app, for example, offers its customers free coffee and the chance to skip the line if they complete daily missions. Customers are incentivized to interact with the brand and also feel as if they are part of a community. Gamification in the ecommerce field isnt a new phenomenon and incorporating NFTs is a natural next step. Offering NFTs as a form of reward is already becoming common in the sports world, where athletes offer NFTs to their fans as a way of engagement. The gaming world has also embraced NFTs to strengthen the connection with gamers, finding success in its "play-to-earn" approach. Blockchain-gaming startup Spielworks, for example, recently added the option to earn NFTs on its Womplay platform. If customers are willing to complete tasks for free coffee, they will be very likely to find appeal in the new world of NFTs especially with potential resale value down the road.

Going back to Kings of Leon, its evident the band's golden-ticket NFTs are reminiscent of Willy Wonkas golden tickets perhaps the original loyalty-reward program. Wonkas golden tickets gave consumers another reason to buy chocolate while strengthening the Willy Wonka chocolate brand. NFTs as a loyalty reward take the brand-consumer connection a step further, with a safer reward and a more excited consumer.

Questions:

1. Kings of Leon was the first to adopt this trend. Discuss the importance and value of their golden-ticket.

2. Starbucks using gamification as a rewards program. Discuss the importance and value of their daily missions.

3. Considering the company your marketing team is analyzing for your marketing plan, what are some ways in which they can adopt the NFT approach.

FIRST STUDENT'S POST:

1. The importance and value of the golden-ticket is that it makes the customer feel that they are getting something or a chance to get something that very few others will have the opportunity to receive. The golden-ticket is an exclusive deal that is only available for a specific amount of time and or with limited availability which makes it more attractive to consumers because they are getting something that most are not. Kings of Leon is also offering more exclusive items as part of a series called NFT Yourself. People can bid on one of six golden ticket experiences, which offer fans four front row seats to the show of their choice during each tour for life. (Jbursz, 2021). The use of NFTs like the golden ticket is a modern CRM tool which creates value because it is a novel way to connect and/or reconnect with customers in a way that is relevant and sparks interest. New CRM tools are important because 38% of people surveyed in a study by CFI Group and Radial say that current loyalty programs have lost their appeal. (Shapira, 2021)
2. The importance and value of Starbucks daily missions is that it is a fun way for consumers to interact with the company with the chance to win free prizes or products. Customers are incentivized to interact with the brand and also feel as if they are part of a community. (Shapira, 2021) Gamification can be an incentive by itself because it gives customers an escape for a few minutes to play a mindless game with the extra bonus for the chance to win free stuff at a preferred business. Loyal and frequent customers are more likely to have the app for that business. Now that there seems to be an app for everything, I only download and use those apps for the businesses that I use on a regularly and I would assume that is the same for most consumers. If I dont frequent a business or website, there is no point for me to have their app and interact with that company.
3. My teams company, K Posh Clothing Boutique, has already adopted a NFT approach. K Posh uses Facebook as the main communication tool with its customers in addition to an occasional email. For example, last May, the K-Posh had a May Day Shopping Event. There were a limited number of tickets available for the event. If you purchased one of the limited tickets, the money spent on the ticket was then put toward your purchase that day. In addition, those exclusive customers that bought a ticket before they ran out also got to enjoy special perks they day of the event and each item purchased gave them a chance to win prizes at the event. Now that I know more about the NFT approach, it sounds like K Posh is ahead of the game in the small business and marketing world.

SECOND STUDENT'S POST:

1. Kings of Leons golden ticket granted fans an album release and a chance to win one of six more golden-ticket non-fungible tokens (NFTs). Customers valued these rewards as they felt it is worth their time, money, and effort to attempt winning. Customers are essentially the center of business, so understanding their interests results in strengthened relationships and leads to better business.

2. According to George-Parkin, Nike applied and secured a patent called CryptoKicks, which is a system that releases digital footwear. Merging physical and virtual sneakers allows owners of virtual shoes to be manufactured in the real world. An NFT of this nature would appeal to a sneaker enthusiast. Similarly, Starbucks loyal customers visit their local store on a daily basis. These customers have the opportunity to receive free coffee and the chance to skip the line through the Starbucks Reward app. Although Starbucks is known for its long lines, customers are drawn to the brand as they are incentivized and feel as if they are part of a community.

3. Perhaps my marketing team and I can adopt the NFT approach into our marketing plan. Because our company consists of an edible item, we could team up with an artist to create the companys first ever virtual NFT flavor. The limited-edition flavor would show an animated version of the product and all sales would be directed to something that appeals to the target market.

MINIMUM OF 100 WORD RESPONSES FOR EACH***