Discover more from Magic
How Top Brands Can Leverage Web3-Enabled Sweepstakes to Boost Customer Engagement
Author: Toju Ometoruwa
The following is an excerpt from the white paper “How Web3 Unlocks New Forms of Engagement, Monetization & Discovery in Media & Entertainment”. To download the full PDF, click here.
Leveraging NFTs for Customer Loyalty: Entertainment brands can boost customer loyalty and enhance personalized experiences through Web3-enabled sweepstakes, utilizing NFTs to incentivize users to share data.
Engaging Users and Rewarding Loyalty: The model involves launching NFT collections, introducing rare NFTs with exclusive privileges, and using a point-based system for minting NFTs, ensuring continuous engagement and rewarding loyal fans.
Versatility Across Industries: Major brands like Warner Bros., Starbucks, and Adidas can boost long-term customer engagement through Web3 sweepstakes, showcasing the model's versatility. The whitepaper invites readers to explore further the potential of Web3 technologies for enhanced engagement and loyalty.
Web3 technologies offers a new avenue for entertainment brands to boost customer loyalty: Web3-enabled sweepstakes. These sweepstakes use NFTs to incentivize users to share data, enhancing personalized experiences.
We examined how the challenges brands face, such as data attribution, and how Web3 sweepstakes can address these issues. The proposed Web3 Sweepstakes Model involves launching NFT collections, introducing rare NFTs with exclusive privileges, and using a point-based system for minting NFTs.
Users earn points through brand interactions, which they can redeem for NFTs. This model ensures continuous engagement and rewards loyal fans.
Key Highlights of the Web3 Sweepstakes Model:
Brands can launch their own NFT collections, creating digital assets that fans would want to own or trade.
Intrinsic vs. Extrinsic Value of NFTs: NFTs in the sweepstakes can be of two types:
Intrinsic Value: These NFTs are valuable for their own sake. For instance, a beautifully designed digital artwork or a limited edition virtual collectible. Their value is often determined by the market, based on demand and rarity.
Extrinsic Value: These NFTs act as vouchers or tickets, redeemable for tangible rewards. They could offer VIP access to events, physical merchandise, or unique experiences that are exclusive to the NFT holder.
Rare ‘Extrinsic’ NFTs within the collection can offer exclusive rewards, encouraging more participation.
The process of minting NFTs is tied to points, ensuring that loyal fans have a higher chance of being rewarded.
Users can earn points through desired actions set by the brand, such as purchasing products or sharing content.
Examples of Web3 Sweepstakes Strategies for Brands:
The following is a list of potential ways in which major brands like Warner Bros., Starbucks, and Adidas can boost long-term customer engagement by launching a web3 sweepstakes program using NFTs. Each example demonstrated how NFTs can be used to offer rewards of intrinsic or extrinsic value. This distinction allows brands to manage their costs for program giveaways. Intrinsic value NFTs. which make up a majority of the NFT collection, costs almost $0 to produce, yet can generate value for the brand through the desired actions users perform in order to earn points, or through the trading fees they earn when users buy or sell NFTs.
Warner Bros. Discovery Sports:
NFT Collection: Launch NFTs representing iconic NBA moments or exclusive behind-the-scenes content.
Rare NFTs: Offer exclusive access to live NBA games or meet-and-greet sessions with players.
Engagement: Users can earn points by participating in NBA trivia quizzes, sharing content, or purchasing merchandise.
NFT Collection: Create NFTs representing different coffee blends or iconic Starbucks moments.
Rare NFTs: Offer exclusive coffee tasting sessions or a chance to design a limited-edition Starbucks cup.
Engagement: Points can be earned by purchasing Starbucks products, sharing coffee recipes, or attending virtual coffee masterclasses.
NFT Collection: Launch NFTs showcasing classic Adidas sneakers or exclusive fashion designs.
Rare NFTs: Offer a chance to collaborate with Adidas designers or access to limited-edition merchandise.
Engagement: Users earn points by purchasing Adidas products, sharing workout routines, or participating in virtual fashion shows.
NFT Collection: Launch limited edition NFTs representing iconic fashion shows or unique design sketches.
Rare NFTs: Offer an exclusive fashion consultation with a top Gucci designer or a personalized shopping experience.
Engagement: Earn points by participating in fashion trend surveys, sharing Gucci’s content on social media, or purchasing products from their latest collection.
NFT Collection: Create NFTs showcasing vintage aircraft designs or memorable flights.
Rare NFTs: Provide a chance to win a private jet experience or a behind-the-scenes tour of an airport.
Engagement: Points can be accumulated by booking flights, sharing travel stories, or participating in travel quizzes.
NFT Collection: Launch NFTs representing rare in-game items or exclusive concept art.
Rare NFTs: Offer access to closed beta tests of upcoming games or a gaming session with developers.
Engagement: Users can earn points by purchasing games, participating in community events, or creating user-generated content.
NFT Collection: Create NFTs of iconic album covers or rare live performance recordings.
Rare NFTs: Offer a virtual meet-and-greet with artists or exclusive access to unreleased music.
Engagement: Points can be earned by streaming music, sharing playlists, or participating in music trivia quizzes.
By launching their own NFT collections, brands can offer digital assets with both intrinsic and extrinsic value, creating a rich and rewarding experience for their audience. The examples provided for major brands across various industries showcase the versatility and applicability of this model.
Looking forward, we invite readers to delve deeper into the untapped potential of Web3 technologies and explore new forms of engagement and loyalty by downloading our comprehensive whitepaper: “How Web3 Unlocks New Forms of Engagement, Monetization & Discovery in Media & Entertainment”, guiding brands towards a future of unparalleled customer engagement and loyalty. To download the full Whitepaper PDF, click here.
Thanks for reading Magic! Subscribe for free to receive new posts and support our work.