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Last week we explored how Frames (a client/app on Farcaster) has the potential to change the way we interact, engage, and make transactions on social media platforms.

In case you are still out of the loop, I invite you to read the past edition and create an account there, using this link.

And since we started a different format for The Wild West of Web3 - and many of you seem to have liked it - today we have another deep dive.

If last week we talked about something “new” for the mainstream audiences, this time we have the complete opposite: we’ll talk about how one of the world’s biggest brands is positioning itself to become a huge name also in the Web3 space.

LFG!

Loyalty Engagement Programs:
The current state

You have been following The Wild West of Web3 for a while, you have probably noticed that a recurring subject is “Loyalty in Web3”, or “Open Loyalty”.

So far, we have dedicated two entire editions to cover this topic: #10 and #23. On top of it being one of my favorite topics, having loyal customers is a central discussion to pretty much every company or project, so expect more content around this in the future 😄.

In those past editions I mentioned above, we covered most of the concepts that surround the current/traditional loyalty programs, so I’ll go straight to some additional facts here:

Statistics and Facts

• 60% of consumers aged 18-24 say they like point-based loyalty programs - and 20% say they would stop shopping from certain brands if they were to end those programs (Deloitte)

  → My take: Web3 offers many new, exciting ways to approach younger generations, from gamification to immersive experiences.

  Sometimes, it’s not about reinventing the wheel - so you don’t have to necessarily abandon point-based systems. But there are certainly better ways of applying this strategy.

• 54% of loyalty memberships are inactive, indicating a need for more engaging programs (Capgemini).

  → My take: Gamification, immersive experiences, trading on marketplaces/secondary markets, etc. There’s a long list of tools that can be used to keep your audience active, engaged, and connected to what you are building.

• Brands that incorporate gamification into their strategies see a 47% rise in engagement (Snipp).

  → My take: That’s something I have been saying for a while. By offering gamified experiences/journeys, brands of any size have the opportunity to create true, meaningful connections with their customer base.

Traditional loyalty programs obviously have their merit. Many companies make billions thanks to their Web2 strategies. That’s important because it would be just crazy to say otherwise.

However, it’s clear that learning - and implementing Web3-based strategies for customer loyalty and engagement is becoming more and more important for brands that want to stay relevant.

And if you don’t believe me, what about a tiny company called Visa?

Visa: A Quick view behind the curtains

Your family, your friends, me, you, my colleagues, the person sitting right next to you… If you ever made a debit/credit card transaction, big chance that you have interacted with Visa at some point.

Since BankAmericard became “Visa” in 1976, it’s hard to meet someone who hasn’t at least seen its logo.

However, maybe because we are so used to it, it’s easy to forget how big this company really is, so let’s have a better view of what’s going on here:

Some of the highlights:

→ 4.3B Visa cards connecting people globally (as of June, 2023)

→ From September 2022 to September 2023, 276.3B transactions have been processed.

→ Payments/transactions in over 200 countries and territories.

My point here is: LOOK AT THOSE F*CKING NUMBERS!

A company as huge as Visa is certainly not investing resources in Web3 just because it’s “cool” or it’s a “hot topic”.

I often get asked about “hype” around Web3. And yes, there are topics within the space that may come and go or even have different “waves” (AI, VR, etc), but Web3 as a whole - and all the possibilities that it brings - is CERTAINLY just getting started.

Ok, enough introduction. Time to see what’s this thing all about.

Visa Web3 Loyalty Engagement Solution

I’ll start this with a quote taken directly from the company’s page:

“Digital experiences” → Well, my friends, whether we like it or not, we spend A LOT of time online, as it’s hard to see this scenario changing.

However, one of the major hurdles we have seen so far is bridging Web2 audiences into Web3. And we can’t deny that a leading card company has one of the best shots at making this happen in a more “natural way”.

Visa has basically all the tools: large reach, it’s a trusted company, a large budget is certainly available, and the company seems to understand how to make tech transitions happen without too much trouble (contactless payments, online purchases, disposable virtual cards, etc.).

“Bla bla bla, I want to know what this ‘Visa Web3 Loyalty Engagement Solution’ is!”.

Two things:

1) Considering Visa’s size, I truly believe this initiative has the potential to truly transform how we see and understand loyalty programs.

2) This solution’s target is businesses that are looking for solutions to embrace Web3 strategies. Or, in other words, want to use Visa’s platform to interact with their customers.

With a foundation built on digital innovation, Visa's Loyalty Engagement Solution focuses on enriching the customer experience in ways that resonate in today's digital-first world.

At the core of Visa's strategy are digital wallets, which is important, considering that the “creating-a-wallet” is often an obstacle when it comes to Web3 platforms.

These wallets allow you (as in “your business”) to offer your customers a safe way to store their digital assets/collectibles.

But much more exciting (and perhaps useful from a marketing perspective) than “just” storing their stuff, these wallets help make authentication easier - no cookies needed. By the way, in edition #24, we talked about this transition from cookies to wallet:

“The wallet becomes a new focal point for communication, shifting from traditional email/ID-based systems to a more dynamic, safe, and interactive platform”

But back to Visa: Through uniquely customizable digital collectibles, customers can enjoy a new level of ownership - one that’s often missing in traditional loyalty programs.

How so? Those collectibles can be earned, redeemed, collected, interacted with in AR, picked up on a map, and more. This matched with a mobile-first audience can certainly help businesses elevate their loyalty game.

Imagine your customers earning rewards that go beyond the mundane, transforming into digital collectibles that carry value, identity, and exclusivity. These rewards, besides being collected, can be experienced, shared, and treasured, marking a departure from the traditional points system to something profoundly more engaging - and profitable.

Visa is offering businesses the tools to create immersive experiences that bridge the digital and physical realms. From augmented reality drops to treasure hunts, the possibilities for engagement are boundless, promising a future where loyalty programs are not just beneficial but essential to the customer experience.

“Oh, so this solution only helps my business offer digital wallets to my clients?”

Not only this. In fact, it can be your business’s passport to creating:

• Gamified campaigns

• Immersive 3D/AR navigation

• Community building/sharing within your existing fan base

• Brand loyalty

• Product testing

• Collections/collectibles

• And yes, offering digital wallets to your clients.
  

I shared this video before, but in case you haven’t seen it, it helps visualize how this solution can transform users’ engagement.

Here's what’s really caught my attention:

💳️ Digital Wallet: A secure, versatile solution for storing and managing digital collectibles, redefining access and engagement.

💳️ Collectible-powered loyalty: A shift from traditional rewards to unique, digital assets that offer a more personalized and meaningful loyalty experience.

💳️ Immersive Customer Journeys: Leveraging AR and other digital innovations to create engaging, memorable customer interactions.

💳️ Future of Engagement: Visa's solution helps us look into the future of how brands and consumers interact, making every transaction an opportunity for a deeper connection.

A shortcut to mainstream adoption?
I think so 🙂 

Visa's most recent step into Web3 is nothing short of revolutionary.

Blockchain
NFTs
Spatial Web
DeFi
Transaction gas
And the list goes on and on…

As the ones “behind the scenes” we are certainly used to dealing with these terms daily - and some even enjoy doing so.

However, the way I see things developing, the “turning point” will happen when projects stop bombarding folks with complex Web3 jargon.

In that sense, Visa is making the magic of Web3 accessible and enjoyable for everyone, seamlessly integrating it into companies’ and users’ daily lives.

By emphasizing digital collectibles and unique experiences over technical terms, they are not just enhancing loyalty programs, but also demystifying Web3, making it approachable and enticing for the mainstream audience.

This move by Visa could very well become the bridge that connects the broader public to Web3, showcasing the potential of digital innovation to enrich our everyday transactions and interactions.

See you soon.

#LFGrow
Diego Borgo