Loyalty Program for Fashion Brands in the Web3 Era

Fashion brands now have unprecedented opportunities through Web3 loyalty programs. These cutting-edge initiatives enable brands to gain invaluable insights into their audience, delving deep into their preferences for design collections...

Jul 12, 2023

KEY INSIGHTS
  • Why traditional offline loyalty programs require upgrading
  • Fashion tech mechanics for brands using, step by step
  • Web 3.0 loyalty programs that work

Web3 is revolutionizing fashion, transforming the industry with its focus on privacy, peer-to-peer interactions, and user empowerment. This new era is reshaping how consumers engage with brands, make purchases, and contribute to the creative process.

Fashion brands are adopting loyalty programs to cultivate strong connections and enhance brand loyalty. These programs offer exclusive discounts, personalized offers, early access to collections, and unique experiences. However, traditional offline loyalty programs with handwritten or type-in forms are falling short in today's tech-driven era, resulting in low customer engagement.

To overcome this challenge, fashion brands must embrace tech-driven approaches that simplify the process of joining loyalty programs. The integration of Web3 technology into loyalty programs has taken customer engagement to new heights, seamlessly blending physical and digital experiences. By incorporating QR tags and mobile applications, fashion enthusiasts embark on a unique and immersive shopping journey. Let's explore how it works.

Type-in form for entering a loyalty program

When customers purchase fashion brand physical apparel, each item is adorned with a QR tag, available in both electronic and paper formats. Scanning the QR code grants users access to a fashion brand's mobile app, where they can create and explore their own digital wardrobe. This digital twin can transcend the boundaries of reality and be seamlessly transferred to popular virtual realms such as Roblox and Minecraft.

The mobile app enriches the customer experience with engagement features. Users can enjoy the thrill of augmented reality (AR) try-ons by virtually wearing and customizing their digital fashion items. The app also offers a marketplace with a plethora of digital fashion collections available for purchase. Moreover, users gain entry into a peer-to-peer (P2P) market, where they can buy and sell digital fashion items within the brand's community using an internal currency.

The benefits for customers extend beyond the digital realm. By utilizing a unique Digital ID, shoppers can unlock discounts on future purchases of physical clothing and accessories. This symbiotic fusion of physical and digital fashion not only appeals to tech-savvy consumers but also adds an innovative touch to the traditional shopping experience.

Brand mobile app with digital fashion collections as a part of a loyalty program

Fashion brands wield a tool behind the scenes—the admin panel. This dashboard enables brands to monitor and analyze user behavior within the mobile app, gaining insights into customer locations, popular purchases, preferred customization options, and the virtual realms where their fashion items are showcased. Armed with detailed knowledge, fashion brands can make data-driven decisions and tailor their offerings to match the evolving tastes and preferences of their customer base.

Leveraging a robust system of notifications, brands can inform users about new collections and upcoming marketing campaigns, fostering a sense of exclusivity and loyalty through personalized engagement.

The gamification aspect further fuels customer engagement. By utilizing the internal mobile app currency, fashion brands can incentivize and reward their loyal customers, driving sales of both digital and physical products. With retention and sales growth firmly in their hands, fashion brands are embracing the digital revolution with open arms.

Admin panel with a dashboard

Successful Web3 loyalty programs in the fashion industry serve as inspiring examples of this transformative approach. For instance, Martina Spetlova, a London-based fashion designer, released a phygital jacket available in physical form at Selfridges and in digital form on the Seamm marketplace. Through a special QR tag, customers joined a brand loyalty program via the Seamm app and gained the opportunity to transfer a digital twin as a wearable in Decentraland.

Similarly, Alexandra Moura, a fashion label based in Lisbon, Portugal, collaborated with Seamm to release the phygital collection SS 2023. Every physical apparel item features an electronic QR code, granting access to digital collectibles via the Seamm app, including metaverse integration, AR try-on, and customization features. This collaboration provides an immersive experience for the brand's customers.

Customers buy a physical apparel with Seamm QR code attached.
Customers scan the QR code and get digital twin of the apparel that can be worn in Decentraland

Fashion brands now have unprecedented opportunities through Web3 loyalty programs. These cutting-edge initiatives enable brands to gain invaluable insights into their audience, delving deep into their preferences for design collections, color palettes, fabric textures, patterns, and more. With Web3 technology, brands can personalize their offerings and establish a fresh avenue for continuous engagement and interaction with their loyal clientele, revolutionizing the landscape of brand marketing.

The integration of Web3 technology into existing loyalty programs can be seamlessly achieved by leveraging white-label solutions equipped with fully developed mobile applications. These applications offer a wide range of features, such as creating digital twins, generating QR codes, incorporating gamification elements, and providing an intuitive admin panel for content management and customization. Through the branding of a mobile app, fashion brands can effortlessly embark on this transformative journey, captivating and delighting fashion enthusiasts worldwide.

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