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Loyalty programs are what bridge customers to a brand, that encourages them to be regular shoppers from the same store or use the services of businesses associated with the program. This has developed as attempts to bond the customers and in return for their loyalty are rewarded with benefits of any form. From a business point of view loyalty programs are ways to retain a certain percentage of loyal customers in the sense of exclusive loyalty, there is more to loyalty programs than just one, loyalty programs also promote their times while also acting as a barrier to deflecting their competitors. In the long run, customers might perceive loyalty programs as a gimmick if it turns out not to provide the customer with unique values.

With Web2 Loyalty programs a lot of reports such as the 2021 report made by Merkle Loyalty researched that almost 45% of customers felt as though reaping rewards took too long while 31% of customers felt it is more difficult to earn a reward.

A Study states that primary reasons for canceling programs include companies giving out hardly relevant rewards and a lack of online community.

Web3 loyalty programs emphasize the 80/20 principle, where 20% of loyal customers shall reap benefits & rewards that are hyper-personalized and drive engagement. Let us take a detailed route on how Web3 loyalty programs.

Common Drawbacks in Web2 Loyalty Platforms

Unused Loyalty Rewards

It has been estimated that the unclaimed rewards of customers sit on around $100 billion in loyalty points, this also means unused points indicate lower engagement towards brand loyalty.

Complicated Loyalty Program Process

A loyalty program once ruled out by customers as too complicated or hard to understand is already a lost cause, and customers probably would not engage in loyalty programs of the respective brand.

Higher Churn

A higher churn rate indicates a higher volume of customers leaving the company for a better one, with a strong program the churn rate can be kept at a minimum thus improving customer retention.

Enrollment Rates

The enrollment rate indicates the participation of customers in the brands a lower enrollment rate says consumers are not interested in the brand or the brand lacks personalization with the rewards.

Benefits of Web3 Loyalty Platform

Web3 Loyalty Platform empowers and enhances loyalty programs to a better level which is duly credited to the blockchain technology and its corresponding assets. The web3 loyalty platform constitutes interoperability, and cross-brand points usage meaning the Web3 loyalty programs aren’t just limited to the brands they previously earned from. When compared with the web2 loyalty platforms, web3 loyalty platforms are renowned for offering better customer-oriented benefits and ultimately benefit company engagements.


The primary disadvantage of web2 or the traditional loyalty programs is that the points once earned in any brand are limited to the usage within the specific brands and ecosystems. Blockchain interoperability diminishes this barrier and enables usage of the points to different companies and accepts reward programs from other companies as well. for example, reward points earned from a sports brand can be used for e-commerce vouchers.


The on-chain activities of users are studied and offered in correspondence with personalized experiences, this doesn’t just limit to boosting engagement but also gives customers the taste of feeling valued and taken into consideration in a more individualized state. Web3 guarantees the transformation of traditional customer engagement into an immersive and interactive experience.


All transactions and reward accruals are transparently recorded and it can’t possibly tampered with, which itself prevents unauthorized usage of loyalty points by users. The blockchain nature is irreversible indicating loyalty points can’t be double spent or reversed thus protecting both businesses and customers from fraudulent activities that lead to the loss of earned rewards. Companies don't have the power to de-evaluate the points value post-earning.

Top Companies that Use Web3 Loyalty Rewards Programs


The Starbucks Odyssey is a web3-powered extension of the brand’s loyalty program. Customers engage in gamified web3 loyalty programs. they can take part in a series of interactive, educational "Journeys" that teach them about coffee, Starbucks's history, and more. such journeys involve activities like virtual tours, trivia, and mini-games. Collectible NFT stamps like the unique blockchain-based are acquired through completing journeys. thereby accessing exclusive benefits and stupendous coffee experiences.


The ALTS by Adidas program is a Web3 loyalty program with its integration of blockchain technology and NFTs to enhance customer engagement and loyalty. By giving NFT holders access to perks catered to their interests, such as event tickets, virtual and physical goods access, and exclusive experiences, the program aims to be useful to NFT holders. This utility-driven strategy improves user loyalty and engagement.

Lacoste’s UNDW3

The Lacoste UNDW3 Card users can access a customized Web3 platform through the UNDW3 program, which provides a unique experience. This platform enables customers to take part in brand-related creative challenges, interactive games, and mixed-reality adventures.

How to Create a Web3 Loyalty Platform?

The web3 loyalty programs are revolutionizing customer engagement. Developed on a blockchain it is an understatement to say they offer personalized rewards. Where does one begin? we have listed a guide that creates the best Web3-powered loyalty platform.

What is the conception of your program:

What is your unique selling point? what rewards do the customers get and are they personalized? How is that benefitting in the long run? Who are the target audience and do you understand their preferences? how could the rewards boost engagement? who are you trying to attract? Research widely and coherently to guide your reward structure and platform design.

Choose the Tools to Build

Choose a blockchain platform for the loyalty program, that suits the scalability, security, and transaction fees. A secure smart contract that automates reward and point registration

Smart contracts are self-executing contracts directly written into code. For reward programs, they can be used to automate the process of reward distribution and program logic.

Frontend development for a Web3 loyalty reward program involves creating a user-friendly interface that integrates seamlessly with digital wallets and blockchain functionality. This interface should make it easy for users to interact with the program, whether it's earning or redeeming rewards should be intuitive and engaging.

Build Core Features

Hosts can build their own NFT tokens or utilize existing native tokens of the blockchain platform and integrate trusted wallets for a smooth experience.

It is vital to build seamless game mechanics like quests, challenges, and leaderboards to make earning rewards fun while also making sure smart contracts are safe and error-free by conducting regular audits.

Monitor Performance

Monitor platform activity, reward usage, and user interaction to pinpoint critical areas and streamline your initiative. Stay updated with the ever-changing Web3 scene. Investigate novel collaborations, technologies, and features that might improve your program and provide your clients value.

Launch and Iterate

Start strong by promoting and informing people about your exclusive Web3 program. Keep an eye on analytics, user input, and the changing Web3 environment to make the required adjustments and guarantee your web3 loyalty program remains cutting-edge.

Types of Web3 Loyalty Platforms


Customers participating in point-based loyalty programs are eligible for exclusive NFT incentives that are based on information about their preferences and purchase habits. Once enough points are earned, these NFTs can be utilized towards future purchases that closely match their typical tastes.


Web3 loyalty programs that are value-based are predicated on a company allocating a percentage of its income to charitable endeavors. Businesses can create a positive impression of themselves and give customers a sense of involvement through these activities.

Purchase Based

When someone purchases a specific product, these NFT loyalty programs become active. These programs provide users with a plethora of product-related perks over time, increasing the purchase's value.

Tier Based

Users can get access to particular levels through these NFT loyalty programs, which offer token holders a variety of incentives. Even level upgrades based on completed purchases may be included in these programs.

Build Web3 Loyalty Platform

It is important to know that creating a successful Web3 loyalty program takes more than just technical know-how it also takes a clear vision and a dedication to developing deep relationships with your customers. utilizing blockchain technology ensures a program that recognizes and rewards customer loyalty and cultivates a network of enthusiastic brand ambassadors.

By assisting customers in visualizing their Web3 project objectives and providing scalable and out of box solutions, Maticz emerges as a top Web3 development company. With the use of mind-blowing Web3 apps, our industry’s best minds assist customers in discovering and optimizing the scope of their businesses to dominate the digital realm. Join hands with Maticz for your Web3 loyalty program and reap lucrative benefits.

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