Social tokens drive community, commerce and ESG goals for brands
A customer loyalty program is a commonly practiced marketing approach that recognizes and rewards customers who purchase or engage with a brand on a recurring basis. Point-based loyalty programs are the most common loyalty program methodology. Customers earn points that translate into rewards such as discount codes, freebies, experiences or another type of special offer. Finding the balance between attainable and desirable rewards is a challenge for most designing these programs. One way to combat this is to implement a tiered system that rewards initial loyalty and encourages more purchases. The biggest difference between the points and tiered system is that customers optimize extracting short-term versus long-term value from the loyalty program.
Web3 based social tokens have emerged as an exciting community engagement vehicle that can bridge the best of these worlds, and present an opportunity to create a more dynamic, novel consumer relationship. This relationship is indicative of a web that promises collective ownership and transparency.
We’ve seen major brands like Starbucks and Reddit adopt blockchain-based rewards to incentivize behavior, and it’s just the tip of the iceberg. Social tokens, NFTs and metaverses all hold a unique piece of the puzzle.
Consumers are going to be loyal to the brands that value their experience, as well as assert their own values. 83% of Millennials want companies to align with their values, according to 5WPR’s 2020 Consumer Culture Report. Gen Z is no different.
We’re trending toward deeper integration between Web3 and Environmental, Social and Governance (ESG) practices. Brand culture is already moving in both directions simultaneously. It’s an incredible moment for innovation – one that we believe more brands should prioritize in terms of how they assert their values and the impact they want to create in the world using Web3. We do not need Web3 to solely advance community and commerce from a brand perspective. We should be seeking how social impact and grassroots action can be embedded into Web3 to create a new community paradigm that puts us on the right side of history, so we will proudly look back at the blockchain revolution. Further, good has been proven many times over to be good for business.
As always, it’s up to leaders. Leaders must swing the bat. They must showcase what’s possible through the action they ignite, putting the power of a purpose-driven brand and community to work. It should be experiential – novel to engage with – and integrated – so that driving social action is a key element of the customer experience. Who is not asking for stronger corporate citizenship in these trying times with war, economic slump, gun violence, a pandemic, reproductive rights and midterm elections all not far from mind?
Socialstack prioritizes the pathway to an inclusive Web3 with purpose through a two-fold approach. First, it empowers inclusivity by allowing users to earn tokens rather than exclusively investing, thereby creating larger and more engaged communities. Second, it emphasizes brand purpose and social impact by incentivizing positive community behavior, such as ocean cleanup and tree planting.
Those who activate in this way and execute will have a first mover’s advantage. Reach out to learn about how we can help you do so – and read more about our curated tech platform, which is accessible by email login/web3 wallet and utilizes QR codes for token earning and redeeming.
These are the five key functions that social tokens empower:
- Activate measurable impact - Instill values into your strategy to make a social impact and advance quantifiable ESG and CSR goals
- Incentivize customer action- Incentivize consumers to act in ways that benefit your goals (whether that’s community, commerce, ESG or all of above)
- Open a pathway to web3 partnerships - Top blockchains have hundreds of millions of dollars allocated to grants and ecosystem investments to incentivize companies with traction to launch a project on their chain
- Access new web3-first consumers - Find new fans/customers from community empowerment, and access web3 wallet addresses
- Enable community governance - Enable participation in decision making on initiatives by holding community votes
Research from McKinsey found that members of paid loyalty programs are 60% more likely to spend more on a brand after subscribing, versus only 30% for free loyalty programs. Equally as impressive, 70% of consumers would be willing to pay for a premium loyalty program provided the benefits were relevant and desirable to them.
There’s proof in the pudding.
One of the successful brand-issued social tokens on Socialstack is the Blue Tiki ($BTIKI) token by leading water sports brand Starboard. $BTIKI aims to incentivize and reward environmentally positive actions amongst Starboard’s customers and the eco-community at large. What can you do with $BTIKI?
- Buy Starboard’s 10x climate positive merchandise
- Plant Mangrove trees in their climate park in Myanmar
- Access exclusive side events at Starboard sponsored surfing events and competitions
“We see a social token as the first step to turning the Starboard and SOMWR community into a decentralized autonomous organization. Blue Tiki is a part of our resistance movement, valuing a live biosphere above drowning it. For those new to this space, climate positive actually means to go carbon negative". - Starboard CEO, Svein Rasmussen
The Blue Tiki token ($BTIKI) unlocks exclusive discounts, private events, and membership benefits within Starboard and SOMWR’s entirely global water sports community. Tokens can be redeemed for a variety of digital and real world offerings. Our goal is to bring the community together around the issues we’re facing. Click here to view the full case study.
Perhaps social tokens are the tool that’s been missing to simplistically shift to a more purpose-based economy where consumers are in the driver’s seat.
If you’re interested to learn more about our projects, head over to Cointelegraph, Bloomberg, Decrypt, and Forbes.