In an era where engagement and customer retention are the lynchpins of success, enterprises constantly seek innovative solutions to attract and captivate their audience. Enter gamification, a strategy that employs game design elements in non-gaming contexts. And now, with the advent of non-fungible tokens (NFTs), how businesses create gamified experiences is set to undergo a significant transformation.
For enterprises yet to delve into the Web3 space, it’s crucial to grasp the potential in which NFTs supercharge user engagement for enterprises.
Why NFTs for Gamification?
NFTs are unique digital assets, verifiable via blockchain technology, representing ownership or proof of authenticity of a particular item or content. Each NFT is distinct and non-interchangeable and cannot be modified. NFTs present many possibilities that help enhance both the brand and the end-user experience.
Enhanced User Engagement
Incorporating NFTs into gamified systems means users aren’t just playing for points but tangible, valuable, and sometimes resellable assets that users can redeem for real-world benefits. Users may collect NFTs throughout their gamified experience as progress and performance markers. Gamified experiences powered by NFTs significantly enhance the commitment and time users invest in a platform, allowing enterprises to create opportunities for customers to further transact and interact with the enterprise. In addition, this facilitates the creation of value for end-users, more so relative to traditional ways of implementation – creating more customer stickiness and brand loyalty.
True Ownership & Interoperability
With NFTs, users now have genuine ownership of their assets, which may be transferred, sold, or used across multiple platforms. NFTs unlock a universe of possibilities and create ecosystems where NFTs from one activation find utility in another, enhancing enterprises’ reach and brand exposure.
For example, Nike and RFTKT introduced digital sneakers via their co-branded CryptoKicks NFTs. Built for avatars in digital worlds, these NFTs entitle holders to transform their NFT into a physical sneaker if they purchase an additional associated NFT – melding the boundaries of virtual and real-world fashion.
Enhanced Security & Authenticity
NFTs ensure the authenticity and provenance of each digital asset. Enterprises and end-users can confidently know their NFTs’ origin, history, and authenticity, a level of transparency and security not available with traditional Web2 solutions. This provides enterprises with more accessible and convenient access to information about how users have been interacting with their NFTs, which can then be used to retarget them or optimize future activations. In addition, NFTs operate on decentralized networks – which ensures high availability, reduced risk of data breaches, and resilience against system failures.
Economic Efficiency
Incorporating NFTs into gamified systems introduces significant economic efficiencies for enterprises. For starters, NFTs operate on decentralized blockchains, negating the need for extensive databases and servers, thereby cutting down on infrastructure-related overheads. Furthermore, they ensure the unmistakable authenticity of each digital asset, warding off potential expenses tied to counterfeit mitigation. Finally, by bestowing upon users assets with genuine long-term value, NFTs diminish the constant need for new reward introductions, thus saving on recurrent content creation costs. In essence, NFTs enhance user engagement and introduce substantial operational savings.
How Have NFTs Been Used for Gamification?
We’ve observed gamified experiences using NFTs applied across multiple domains.
Luxury Retail Engagement
Luxury Brands such as Louis Vuitton have used gamified experiences powered by NFTs to drive interaction and connection with their audience. One example would be Louis Vuitton’s Louis the Game, a playable app where users can set out on an adventure across various places to find 200 collectible NFT candles in honor of LV’s 200th Anniversary. Each candle reveals tales from Louis Vuitton’s past.
Loyalty Programs
Gamified experiences powered by NFTs have also found a home in loyalty programs from some of the world’s biggest brands. Starbucks integrated gamified elements into their Web3 loyalty program, Starbucks Odyssey, where users participated in interactive ‘Journeys’ to earn NFT ‘Stamps’ that can be sold on a marketplace and earn points for benefits such as classes, trips, and events.
Moreover, a novel application named Uptrip enhances airline loyalty schemes and incentives by harnessing NFTs, which manifest as “trading cards” for every boarding pass from associated airlines. To use it, simply get the app, scan your boarding pass’s QR code, and obtain unique NFT collectibles. The app has a game-like element, wherein gathering a series of 10 cards grants a distinct prize.
Mintology also worked with Station Casinos to implement a series of digital and collectable good luck Charms exclusively available to members of Station Casinos’ loyalty scheme, Boarding Pass. The STN Charms campaign was an original and interactive way for Boarding Pass members to earn unique rewards and customise their playing experience.
Event Engagement
Gamified experiences using NFTs have also been used to drive engagement in events. For example, Mastercard partnered with Mintology to devise a scavenger hunt activation for their corporate events, where scannable QR codes were strategically placed across various zones at the event location. Each QR code, when scanned, would grant attendees a unique NFT, and attendees stood a chance to win an exclusive prize once they completed a collection of NFTs.
To create gamified experiences that entertain and add tangible value, NFTs are the future. Enterprises venturing into this new frontier stand to gain immensely in user engagement, retention, and revenue potential.
By adopting NFTs, businesses aren’t just participating in a fleeting trend; they’re aligning themselves with the future of digital engagement. It’s time to reimagine gamification through the lens of NFTs and unlock new realms of possibilities.