NFTs Enhance Customer Loyalty: 6 Key Advantages of Loyalty in Web3

More and more frequently, we come across concepts related to the cryptocurrency universe, including the world of NFTs and digital art. How much do we know about NFTs and Web3? Understanding their functioning can be a challenge, but it is not unattainable.


In this article, we explain what NFTs and Web 3 are and how we can use them to enhance customer loyalty. Understanding these concepts is crucial as we delve into a world that may seem distant but is approaching us faster and faster.


What are NFTs?

NFTs, or Non-Fungible Tokens, are unique digital assets that represent the ownership or authenticity of a digital or physical item through a record on blockchain technology. What makes them special is that they are indivisible and cannot be exchanged for one another on an equivalent basis, unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged with the same value.


NFTs are used in various fields such as digital art, video games, entertainment, digital collectibles, and more, to ensure the authenticity and ownership of unique digital items. Each NFT has a value and uniqueness that sets it apart from others, making it an important tool for tracking the ownership and origin of online digital assets.


What is blockchain technology?


Blockchain is a distributed ledger technology used to securely and decentralize the public record of transactions. It functions as a digital ledger that records all transactions in sequentially linked data blocks, creating a chain of blocks. Each block contains a set of transactions and a reference to the previous block.


Key features of blockchain include:


  • Decentralization: Information is stored and verified on multiple nodes or computers rather than a central server. This enhances security and resistance to censorship.


  • Security: Data on the blockchain is protected through cryptographic algorithms, making it extremely difficult to alter or counterfeit records.


  • Transparency: The blockchain is typically public, allowing anyone to view the complete transaction history.


  • Immutability: Once a transaction is recorded on the blockchain, it is virtually impossible to delete or modify, ensuring data integrity.


  • Trust: Blockchain technology reduces the need for intermediaries as transactions can be transparently and securely verified, saving time and costs.


What is Web3?

“Web3” is a term used to describe a vision and evolution of the current World Wide Web (Web2) towards a more decentralized, interoperable internet based on technologies like blockchain and smart contracts. Web3 focuses on empowering users and giving them greater control over their data and online activity while aiming to eliminate dependence on centralized platforms.


According to an article published by PWC, “Web3 fundamentally changes the way businesses are developed and how we connect with each other on a personal level. In fact, it is expected to transform the way we think about our online presence in the coming years.”


6 Key Advantages of Loyalty in Web

Now, having understood these concepts, we can link them to EX and CX to discuss Web3-enabled loyalty programs. This is an area of business innovation that promises to reignite customer loyalty and engagement, powered by NFTs.

As explained by Anna Noakes Schulze, Head of Community Experience at TheNTWK: ‘Web3 loyalty programs, backed by NFTs, offer a revolutionary approach to driving customer loyalty, enabling the creation of unique digital assets that can be used to represent various types of rewards, perks, and benefits.’



In TheNTW Summit 23 Report, they mention the following key advantages of Web3 loyalty programs:


1. Increased engagement

NFT holders are typically 3x more engaged than customers participating in traditional loyalty programs, leading to higher customer retention.

When it’s said that NFT holders are ‘three times more engaged,’ it refers to these customers demonstrating a significantly higher level of interaction and commitment to the brand or company compared to those participating in traditional loyalty programs.


2. Personalized rewards

NFTs allow to create highly personalized rewards and unique experiences that cater to individual preferences and make feel more valued.

This means that instead of offering generic rewards that may not be relevant to everyone, companies can tailor rewards based on purchase history, product preferences, online behavior, and other individual metrics. For example, a customer who frequently buys sportswear could receive an NFT that grants exclusive discounts on sports-related products.


3. Ownership and asset liquidity

NFTs give customers true ownership of their rewards, so they can trade, sell, or exchange them, adding a new layer of utility and value to the rewards.

When a customer receives a reward in the form of an NFT, they gain authentic digital ownership. This means they have exclusive control over that particular asset. Unlike traditional loyalty programs where rewards are often tied to specific accounts or platforms, NFTs are owned by the customer and backed by a blockchain, ensuring their authenticity.


4. Interoperability and portability

NFTs can be used as universal multi-brand loyalty cards enabling seamless cross-brand interactions and collaborations.

This means a customer can accumulate NFT-based rewards from one brand and then use those same rewards at another brand within the same NFT ecosystem. For example, a customer could earn loyalty points at a clothing store and then redeem those points at a café or an electronics store that participates in the same NFT system.


5. Improved security

NFTs provide transparency via the blockchain, reducing the risk of fraud while ensuring that rewards are accurately tracked and managed.

Each NFT-related transaction, such as issuing, transferring, or redeeming a reward, is immutably recorded on the blockchain. This means that once a transaction is recorded, it cannot be deleted or altered, ensuring the integrity of the reward history.


6. Granularity of data & insights

NFTs allow brands to interact with NFT holders on an ongoing basis and develop deeper insights into engagement with customers and brand fans.

NFTs provide a direct and ongoing communication channel between brands and their customers through digital assets. This allows brands to stay in touch with NFT holders long after the initial reward has been granted. They can send updates, special offers, event invitations, and more, which keeps the relationship between the brand and the customer alive.

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The evolving landscape of Customer Experience (CX) and Employee Experience (EX)

In today’s rapidly changing business environment, companies are increasingly recognizing the importance of focusing on customer experience (CX) and employee experience (EX) to drive their success. In an interview with Diane Magers, we talked about her role as Experience Catalysts’ Founder and CEO, and latest tendencies in CX and EX for companies.

(Diane Magers, CX Day Mexico 2023 Keynote Speaker)

“As an XM advisor, my role involves helping organizations understand, adopt, and build the critical capabilities necessary to define, design, and drive impact to their brands,” Diane says. 

In this article, we will explore the latest tendencies in CX and EX and examine how the disciplines of psychology and XM can work together to address the challenges faced by companies today.


1. Individual empowerment and understanding of experience

One of the prevailing trends in CX and EX is the emphasis on building skills and capabilities for every individual within an organization. Regardless of their role, employees should understand their impact on the experience and how they contribute to it.

This holistic approach ensures that everyone recognizes the importance of delivering exceptional experiences and actively works towards achieving this goal.


2. Human-centric approach to data and technology

While data and technology play crucial roles in shaping CX and EX strategies, organizations are now approaching them from a human aspect. “Rather than solely focusing on data and technology, companies are striving to understand what customers are trying to accomplish, their goals, and desired outcomes”, points out Magers. By designing experiences centered around these human needs, they can then leverage technology to enable and enhance those experiences.

Adobe conducted a series of studies to understand how generative AI is changing both what customers expect and how brands deliver experiences, surveying over 13,000 consumers and 4,000 customer experience and marketing professionals. “Consumers want companies to use generative AI to improve experiences — responsibly”, the survey indicates. 


3. Systematic integration of experience into everyday operations

Organizations are seeking more systematic ways to embed experience management into their daily operations. This includes incorporating customer experience as a prioritization model, fostering cross-collaboration among teams, and progressing from journey mapping and discovery to journey management. By managing all activities across the customer journey, organizations can optimize their investments and work towards a targeted future state.


4. Treating employee experience as a strategic priority

Recognizing the critical role employees play in delivering great experiences, many companies are now treating employee experience on par with customer experience. “Employees are considered as brands of the organization, and their engagement and satisfaction directly impact the overall customer experience,” says Diane. Companies are applying the same lens and practices used for customers to employees, such as active listening, continuous improvement, engagement, and co-creation sessions.


The synergy between Psychology and XM

According to a survey conducted in 2019, titled “Leveraging the Value of Emotional Connection for Retailers,” customers who form an emotional bond with a brand exhibit a three-fold increase in lifetime value.

“My background in both psychology and XM has allowed me to understand the fundamental aspects of human behavior and apply that knowledge to the realm of experience management,” Diane ponders.

  • How do you think this both disciplines (Psychology and XM) can work together in order to find solutions for CX and EX challenges that companies faces nowadays?
  • Psychology provides insights into the emotional and motivational drivers that influence individuals’ behaviors and decision-making processes. This understanding is crucial when addressing CX and EX challenges.

By integrating psychology and XM, companies can uncover the underlying emotional elements and subconscious factors that shape customer and employee experiences. This knowledge helps organizations identify where they meet or fall short of expectations, enabling them to design more meaningful and impactful experiences. Psychology also allows organizations to tap into the power of emotions, recognizing that positive emotional connections drive customer loyalty and advocacy.


The importance of human and emotional elements in business

According to an investigation conducted by Qualtrics, emotion has the largest impact. After asking a demographically representative online panel of US consumers that recently interacted with companies across 22 industries, they’ve come to the conclusion that consumers with a high emotion rating are more likely to exhibit the four loyalty behaviors (likelihood to recommend, forgive, trust, and buy more). Across all industries, emotion most highly correlates with likelihood to purchase more, with 86% that had a high emotion rating likely to do so.


  • What part do you think the human and emotional elements play in business? 


  • Understanding and incorporating human and emotional elements in business is vital for several reasons, says Diane. Firstly, emotions greatly influence human behavior, and experiences that evoke positive emotions tend to lead to customer loyalty and advocacy. On the other hand, negative emotions can result in customer churn and negative word-of-mouth.


Secondly, emotions play a significant role in building strong relationships between companies and customers. Emotional connections foster trust, loyalty, and long-term customer relationships. By paying attention to the emotional aspects of CX and EX, companies can differentiate themselves from competitors and create a lasting impact.


Moreover, the emotional elements of business extend to employee experience. Engaged and satisfied employees are more likely to deliver exceptional customer experiences, as they are motivated to go above and beyond. Organizations that prioritize their employees’ emotional well-being and listen to their ideas create a positive work environment and attract and retain top talent.



The evolving landscape of CX and EX demands that businesses prioritize these areas to succeed. The latest tendencies in CX and EX involve empowering individuals, adopting a human-centric approach to data and technology, integrating experience into daily operations, and valuing employee experience.

By integrating psychology and XM, businesses can understand the emotional drivers behind human behavior, design impactful experiences, and foster loyalty. Paying attention to the human and emotional elements in business is crucial as it cultivates strong customer relationships, differentiates companies from competitors, and enhances employee engagement.


5 Ways to use artificial intelligence to enhance customer experience

When a customer interacts with a company, product or service, they can experience a set of perceptions, emotions, and opinions. This occurs throughout the entire interaction process and includes all touchpoints, from initial research and the purchasing process to ongoing product or service usage and post-sale support.

Businesses must be vigilant about emerging trends in customer experience (CX). Therefore, paying attention to designing an appropriate customer experience strategy is key to adapting and meeting customer needs. By doing so, it is possible to create a long-term relationship and even form a stable community.

Currently, artificial intelligence (AI) is gaining increasing relevance in both employee experience (EX) and CX. However, we must think of it as a tool that helps us serve customers, rather than an end in itself. “If not designed with the human needs in mind, technology can harm the experiences a company provides,” says Olga Potaptseva.


Discover how AI can transform customer experience in 5 practical steps

Understanding user behavior and customer expectations or needs helps provide potential solutions and improve their experience throughout the interaction process. Advances in AI and data management enable organizations to offer a more efficient and personalized overall experience.

In her article published in CX Panda, Potaptseva explains the five key ways’ technology can improve human interactions.


1. Personalization: Make your customers feel valued

Automated chatbot responses that go in circles and fail to connect with a human at the appropriate moment often cause frustration and a poor experience for consumers.

Instead, “AI can analyze vast amounts of data about individuals’ preferences, behaviors, and interests to deliver highly personalized experiences,” states Olga Potaptseva.

According to research conducted by Salesforce Research (which interviewed 15,600 people), understanding consumer needs gives companies a competitive advantage. Here are some of the results:

  • 52% of customers expect offers to always be personalized, compared to 49% in 2019.
  • 66% of customers expect companies to understand their unique needs and expectations.


2. Empathy and Emotional Intelligence: Learning to see people as individuals, not as part of an audience

According to Olga Potaptseva, artificial intelligence can be designed to recognize and interpret human emotions, including facial expressions, tone of voice, and gestures. This allows employees interacting with customers or managers to be alerted to any signs of distress and ensure timely human intervention. 

A report by PwC highlights how empathy can influence customer loyalty and their decision to recommend the brand to others. Additionally, the report states that companies adopting an empathetic culture can improve customer satisfaction and ultimately increase their revenue.

Here are some of the reasons why empathy is crucial for companies:

  • Empathy enables companies to better understand their customers’ needs and desires, allowing them to offer more relevant and personalized products and services.
  • Customers are more likely to remain loyal to companies that demonstrate empathy and care about their well-being.
  • Empathy can also help companies solve problems more effectively, as empathetic employees are more willing to listen and understand customer issues.
  • Companies that demonstrate empathy can significantly improve customer satisfaction and, ultimately, increase profitability.


3. Language Translation: Overcoming language barriers

Language translation tools powered by AI can overcome communication errors and enable intercultural communication. The impact of this tool on customer satisfaction can improve CX through content translation and localization, especially in regions where different languages are spoken, and different cultures are present.


A report by Smartling emphasizes the importance of a well-planned translation strategy and the need to use intelligent translation technologies to ensure quality and efficiency.


4. Decision Support: Helping users make informed decisions

“AI can provide decision support tools that can analyze data, generate insights, and offer recommendations to assist humans in making informed decisions,” explains Olga Potaptseva.

A Decision Support System (DSS) is a type of computer system that aids people in making business decisions. DSS is used to handle problems and situations that do not have a clear solution and often involve multiple variables or factors.

DSS uses a variety of tools and techniques to help users collect and analyze information, as well as model different scenarios and simulate outcomes to assist people in making informed resolutions.


5. Virtual Assistants: They will be of great help in the workplace

AI virtual assistants, such as voice-activated personal assistants or intelligent chatbots, can provide real-time information, reminders, and assistance, helping humans manage their tasks, schedules, and daily activities. “We already use them at home, and soon we’ll see them in the workplace,” says Olga in CX Panda.


Some of the ways virtual assistants can improve the workplace include:

  • Employee Assistance: Virtual assistants can help employees with routine tasks, such as completing forms, booking meeting rooms, searching for information, and scheduling meetings. This reduces the workload for employees and allows them to focus on more important tasks.
  • Customer Service: They can enhance customer service by providing quick and accurate answers to customer questions, even outside of customer service hours. This improves customer satisfaction and reduces the time employees spend answering repetitive questions.
  • Process Automation: Virtual assistants can automate low-complexity tasks, such as document review, invoice processing, and task management, saving time and reducing errors.
  • Training and Guidance: They can provide training and guidance to employees on topics such as regulatory compliance, security procedures, and internal company processes.



The use of AI in CX is increasingly important and can help companies improve the services they offer. AI and digitization should be used as tools to enhance user experiences.

By implementing these technologies, companies can increase customer loyalty and, therefore, profitability. They should always be used with human interactions and people’s needs in mind.