Web3 Customer Loyalty Strategies

During the European Blockchain Conference, I had the pleasure of moderating a panel on Web3 customer loyalty. It was a particularly meaningful moment for me because, 20 years ago at university, I wrote my dissertation on how Telefónica grew through constant innovation. I recently had the opportunity to interview Clara Carreira, Head of Product Web3 at Telefónica Innovación Digital, to discuss how they continue to lead through innovation in Web3 and reshape customer engagement in this space.

Telefónica Innovación Digital drives innovation through hyperconnectivity, focusing on data privacy, security, and advanced computing. Its ImagineB5G initiative enhances network accessibility, while the company also explores AI-generated content and immersive Metaverse experiences.

WEB3 STRATEGY

1. What strategies have you used to market to your customers using Web3 technology?

At Telefónica Innovación Digital, we’ve been using Web3 technologies like decentralized platforms and blockchain to create more interactive, transparent, and engaging experiences for our customers. It's all about building deeper connections with them by offering new digital tools that make their interactions with us more exciting and valuable.

2. What specific Web3 tools or platforms have you found most effective for your customer loyalty campaigns?
One of the most effective tools we've used is token-based rewards. Customers earn tokens based on how they interact with our Movistar services, which they can then redeem for a variety of rewards like discounts, products, or even entry into exclusive raffles. We also launched an NFT marketplace, allowing customers to buy, trade, and collect digital assets linked to unique experiences or content, adding an innovative layer to our loyalty programs. Another great addition has been cryptocurrency payments, giving customers more flexibility and allowing us to reach a broader audience, particularly those already involved in the Web3 space.

For security, we’ve partnered with Chainlink to improve the safety of our Web3 projects, using smart contracts and oracles to ensure customer data and transactions are handled securely. We’re also developing a crypto wallet with Bit2Me, making it easier for customers to manage their tokens and cryptocurrency transactions within our ecosystem. These tools have transformed our loyalty campaigns, making them more interactive and secure while keeping them aligned with the future of customer engagement.

3. How do you educate your customers about Web3 concepts to enhance engagement and adoption?
Educating our customers is a critical part of ensuring they feel comfortable with Web3 technology. We simplify complex concepts by providing easy-to-understand content, like blog posts, video tutorials, and guides that break down topics like blockchain, NFTs, and decentralized platforms. These resources explain how Web3 technologies can enhance their everyday experiences with our services.

Additionally, for those already engaging with our Web3 services, we include in-platform tutorials and step-by-step guides to help them easily navigate tools like digital wallets or tokenized rewards. Our approach is always centered on making these new technologies user-friendly and accessible.

CASE STUDY

1. Could you share a specific case study where you used Web3 technology for a customer loyalty campaign?
One example is our TU Wallet project, where we integrated token-based rewards for our customers, allowing them to earn and use tokens as part of our loyalty program.

2. How did you identify the right project for implementing Web3 technology?

We identified this project by focusing on customer needs, particularly the demand for more personalized rewards. Web3 technology gave us a way to offer flexible, token-based incentives. To make this possible, we partnered with platforms like Chainlink, Bit2Me, and Celo to ensure we had the blockchain expertise needed. We also piloted the solution to test how well Web3 would improve customer experience and operational efficiency.

3. What were the key performance indicators (KPIs) you set to measure the success of this project?

We measured success by tracking how many customers signed up and used TU Wallet, how often they returned to use its features, and how satisfied they were with the wallet's ease of use and security. We also monitored how much revenue the wallet generated through transaction fees, partnerships, and additional services.

4. What technological challenges did you face during the project, and how did you overcome them?

We faced several challenges, including managing multiple tokens across different blockchains, which we solved by working with Bit2Me to develop a multi-token wallet. Security was another key issue, so we implemented encryption and partnered with Mastercard to provide extra protection. Simplifying the wallet for non-crypto users was also crucial, so we designed an interface that made transactions as easy as using a phone number. Lastly, compliance with crypto regulations required close collaboration with our legal teams.

5. Is there anything you would do differently in terms of project planning or execution? Any lessons learned?

Looking back, I think gathering user feedback earlier in the development process would have helped us refine features and improve the user experience more quickly. Additionally, better coordination between technical and non-technical teams would have sped up decision-making, particularly regarding compliance and feature integration.

ABOUT THE FUTURE

1. How do you plan to enhance your Web3 customer loyalty strategies in the future?
We plan to keep evolving our Web3 strategies by making our loyalty programs more engaging, flexible, and valuable. For example, we want to expand the use of tokens, allowing customers to redeem them for more than just discounts—like offering exclusive experiences or services within our ecosystem. We also aim to personalize loyalty programs even further by using blockchain and data to tailor rewards to individual preferences.

Another priority is making our tokens interoperable across other platforms, so customers can use them in broader ecosystems, increasing their value. We’re also focused on simplifying the wallet experience for non-crypto users to make it easier for them to earn and redeem tokens. Additionally, we’re exploring sustainability initiatives, where customers could earn rewards for eco-friendly actions, aligning with our broader corporate goals.

2. Are there any emerging Web3 trends that you are particularly excited about integrating into your customer loyalty efforts?

Yes, I’m particularly excited about incorporating gamification and play-to-earn models into our loyalty programs. This would allow customers to earn rewards by completing challenges or engaging in fun, interactive experiences. Another trend that excites me is sustainability-driven tokenomics, where we could reward customers for eco-friendly behaviors through blockchain-enabled programs. This aligns perfectly with our focus on sustainability.

3. What advice would you give to other companies looking to leverage Web3 technologies for customer loyalty?
My advice would be to start with clear objectives and make sure to educate your customers so they understand the value of Web3 technologies. Prioritizing security and privacy is essential, and it’s important to focus on delivering real utility rather than just following the hype. Partnering with the right platforms is key, and being flexible and willing to adapt will help as the technology evolves.