Salesforce is Rolling Out an NFT Loyalty Program Platform for Big Brands
Salesforce is launching a platform where big brands can create NFT loyalty programs. Among the brands that have hopped onto the platform are Mattel, Crown Royal, and the clothing brand Scotch & Soda all of which have already minted thousands of NFTs in Salesforce’s pilot program.
The customer relationship management software company Salesforce has launched an NFT management platform called Salesforce Web3 aimed at assisting clients to create token-based loyalty programs. The NFT integration is meant to bring this Web2 CRM company up to speed with Web3, a trend that is already being replicated across many other mainstream tech companies from the old era.
The Salesforce Web3 platform enables businesses to mint and sell non-fungible tokens, view real-time customer data, and monitor blockchain activity. The platform has been launched with subscription tiers.
The launch of the Salesforce Web3 platform follows a pilot program involving 257,000 transactions with a number of Salesforce clients including the whisky brand Crown Royal, the toy company Mattel and the clothing brand Scotch & Soda.
Salesforce GM of Web3 Adam Caplan said the platform will offer businesses access to first-party data.
The traditional PPC click advertising on platforms such as Facebook has been adversely affected by Apple’s change of policies on cookies. Regulations around advertising and privacy issues are also changing and these have a bearing on traditional advertising channels. This has driven many organizations to embrace alternative platforms, including cryptos. The crypto wallet is becoming an important tool for direct engagement with customers. Cryptos also bypass stringent privacy regulations and policies imposed by various players and allow brands to access first-party data.
Crypto Wallets are Becoming “the New Cookies”
The rich data collected by crypto wallets is transforming them into the cookies of the Web3 era. However, in spite of the first-party data access incentives that crypto wallets provide, Salesforce still takes user privacy implications into consideration. The company says it has built-in consent of privacy tools into the platform for wallet owners to share the information they need.
Mattel issued the Hot Wheels NFT Garage Series consisting of 215,000 NFTs for digital cars. Some of these NFTs enabled customers to earn physical Hot Wheels products according to a company statement.
Scotch & Soda partnered with Salesforce for the launch of its free NFT loyalty program called Club Soda 3.0. Crown Royal minted more than 20,000 claimed digital collectibles linked to the brand and sent care packages consisting of Crown Royal alcohol to active military members.
In the early days, brands treated non-fungible tokens as revenue generators. Increasingly, and with the plummeting of NFT prices in NFT prices in 2022, many brands are discovering other use cases such as customer engagement and loyalty. Instead of focusing primarily on NFTs as revenue generators, brands are now issuing NFTs with the sole purpose of driving engagement, personalization, community, and generating buzz around the brands. These Web3 brand loyalty programs primarily target younger consumers in tune with the Web3 ecosystem.
Salesforce says its Web3 brand loyalty platform is “blockchain agnostic” and only works with proof-of-stake chains. Salesforce says most of its customers are using Ethereum or Polygon blockchains.
Salesforce says many of its customers want to pay end consumers’ gas fees (the fees levied when making transactions on blockchain networks) and that many do not even wish consumers to know that gas fees are applicable or even exist.
Perhaps to make NFTs more palatable to its conventional clientele, Salesforce says it will offer the NFT integrations in its services without the technical crypto jargon such as “blockchain”, “NFT”, “DYOR”, “HODL”, “WAGMI”, and “NGMI” among others. Following the crypto crash in 2022, the more obvious crypto jargons now carry a lot of baggage which may scare away Salesforce’s conservative clientele from its Web3 integrations. Salesforce says it will focus on the customer experience aspect of its Web3 integrations.
Salesforce cites Starbucks and Nike as two companies that are already making positive moves in Web3 customer loyalty even though the two companies aren’t using the Salesforce Web3 platform yet but are relying on their own in-house Web 3 initiatives.
Salesforce says its new NFT management solution targets brands in media, consumer goods, retail, and fashion niches.
In February 2022, over 400 Salesforce employees signed a petition protesting NFT initiatives. Salesforce went on to create its own Web3 Advisory board as well as an Ethical Use Advisory Council in collaboration with consulting partners Deloitte Digital, Accenture, Media Monks, AE Studio, TIME, and Vayner 3.
Salesforce says it incorporated employee feedback in its NFT initiatives and that this shaped the company’s approach and roadmap in the development of its Web3 platform.