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.