A large number of companies, including Budweiser, Pinkberry and more, are reportedly experimenting with non-fungible tokens (NFTs) to drive their loyalty and rewards programs.
According to a report by CNBC, Web3 startup Hang is aiming to give some of the world’s largest brands, such as Budweiser, Pinkberry, and Bleacher Report, “the power of web3 through its NFT-based membership platform, using new reward mechanics and technology to increase customer loyalty and LTV.”
On July 14, Hang, launched its “no-code platform for seamlessly creating and managing Web3-powered membership programs”, and announced a $16M Series A round led by Paradigm. With Hang, “program managers can easily set up membership rules and logic, add benefits and rewards, and connect to third-party services.”
Hang’s announcement went on to say:
“As part of the round, we are also proud to be partnering with Tiger Global, Kevin Durant’s Thirty Five Ventures, Mr. Beast’s Night Ventures, Tiffany & Co.’s Alexandre Arnault, Green Bay Ventures, Shrug Capital, Good Friends (Founders of Warby Parker, Allbirds, and Harry’s), Alt & Lob’s CEO Leore Avidar, Roger Ehrenberg/Eberg Capital, Bomba’s CEO Dave Heath, Scott Belsky, Impatient Ventures, Red Sea Ventures, K5 Global, and several other amazing VCs and entrepreneurs.“
Hang co-founder and CEO Matt Smolin told CNBC that large-scale brands are increasingly using loyalty programs as a way to engage and promote customer retention. He claimed that NFT loyalty programs were an excellent way for companies to leverage the benefits of blockchain technology:
Because of blockchain technology, NFTs create a way for brands to incentivize their users to not only rank up to a new level in their program, but actually appreciate the value of the asset that they own and can later be resold on [NFT] marketplaces.
Smolin noted that most of his company’s business wasn’t for “your typical crypto audience,” and that their goal was to help solve real world problems. He said Hang’s long-term success, and that of NFTs, would come from the integration of existing transaction technologies, such as email and credit card, with blockchain and Web3 technologies.