Gamifying Retail Experiences in the Web3 Era

As each day passes, the difference between physical and digital storefronts becomes increasingly blurred. Technological advancements, a wealth of creativity in the retail sector, and the exciting emergence of Web3 integrations and activations continue to bring physical and digital retail experiences closer together. For brands, online interactions go beyond sales as we enter an era of gamification, loyalty platforms, and memorable experiences. For consumers, interactions with brands are now more rewarding than ever.

The Gamification of Brand Loyalty

If the concept of gamifying brand loyalty is new and confusing to you as a consumer, imagine how brands must feel. For years, they’ve survived on the quality of their products, the strength of their marketing campaigns, and the reach of their advertising — now they need to turn their customer loyalty into a game. It’s a lot to take in.

Once brands start to crunch the numbers about the results they can get from gamifying brand loyalty and customer engagement experiences, they’re naturally inclined to welcome the integration of web3 technology. By looking at how retail pioneers are already using this technology for new shopping experiences, the creative juices begin to flow.

Just consider beauty brand KIKI World, which asked its valued customers to vote on the next color of its “Nail Graffiti” range. The winning color represented 70 percent of the range’s sales, and conversion rates for all community-voted colors sold 3x more than average. The proof is in the pudding — engage the loyalists, make it fun, and you will get results.

Another poignant example is Nike’s “.Swoosh” community-centric Web3 platform, which allows users to co-create virtual sneakers, leveraging the power of user-generated content.

Embracing Digital Loyalty

Both online and offline retailers are tapping into the power of modern brand loyalty mechanisms.

Nielsen’s data is clear: 84 percent of consumers stick to brands with loyalty experiences, while only 15 percent of these rewards are eventually redeemed. The potential here is vast. As brands recalibrate their strategies, a pivot towards engaging loyal customers — bolstered by Web3 platforms — can turn casual shoppers into brand champions.

With in-store shopping up 40 percent post-pandemic, compared to 2020, integrating tech solutions, as highlighted by Square’s research, can cater to today’s tech-oriented customers.

Why Web3 is the Difference

Of course, retailers don’t need to use Web3 or the blockchain, but they would be missing out on an invaluable opportunity to redefine customer loyalty. Brands today aren't just trading in products; they're crafting experiences, stories and a sense of belonging.

Web3 loyalty infrastructure, for instance, enables brands to engage in direct dialogue with their customers, bypassing the traditional intermediaries. Using this approach, brands can create a strong community of loyal fans and keep them interested for a long time. Think about a sports team offering a digital collectible — e.g., a picture of a key match moment. That picture is more than just a digital asset; it's a special memory for fans to have and value.

Furthermore, the inherent features of Web3 empower brands to gamify these customer experiences. Imagine a retail brand rewarding customers with digital collectibles for each purchase, which could later be redeemed for exclusive discounts. Not only does this keep customers hooked, but it transforms every interaction into a valuable engagement.

Then, there's the attraction of exclusivity. In the age of digital saturation, offering limited-edition digital rewards can spark a renewed sense of urgency and desire. Think of a music artist dropping a limited number of backstage passes as digital tokens. Those aren't just passes; they're golden tickets to a once-in-a-lifetime experience.

Digital tokens are more than mere gimmicks; they're data goldmines. Brands can monitor the ownership, transfer, and usage of these rewards to glean precious insights into customer behaviors and preferences, allowing them to fine-tune their future offerings and campaigns.

We can expect to see the implementation of Web3 community platforms backed by the immense technological capabilities of dynamic digital tokens, which essentially evolve over time. A brand may distribute or airdrop rewards that can be augmented over time, bringing new value, introducing collaborations, and unlocking epic gated content to drive a certain narrative or experience. The interactive nature of this adds an extra layer to Web3 loyalty platforms that will leave Web2 loyalty schemes in their dust.

The keys to the kingdom lay in Web3 loyalty for brands that want future-proofed longevity.

Tara Fung is the co-founder and CEO of Co:Create, the most flexible, API-first community activation and rewards platform.