While many nonfungible token (NFT) projects continue to suffer losses due to the bear market, a number of organizations have begun using NFTs to solve
While many nonfungible token (NFT) projects continue to suffer losses due to the bear market, a number of organizations have begun using NFTs to solve real-world problems.
In particular, NFTs for subscription/membership-based models, or loyalty programs, are gaining traction. This point was highlighted in Forrester’s 2023 NFT and metaverse predications report, which notes: “Brands will pivot from ‘cool’ non-fungible tokens (NFTs) towards loyalty. In 2023, brands will shift their focus to NFTs linked to loyalty, brand experience, and deepening customer relationships.”
Indeed, NFT use cases such as these are being implemented today. For example, Starbucks recently announced an NFT-based loyalty program. Industry experts have also begun explaining why subscription-based services should implement NFTs to improve relationships between brands and consumers.
NFT memberships for wellness clubs
Although the concept of applying NFTs for loyalty programs or membership models is new, mainstream sectors are beginning to understand their potential. The billion-dollar fitness industry may be the next sector to implement NFT-based memberships, as a handful of innovative gym owners have already begun exploring this model.
Deni Zulic, CEO and founder of Global Fit Club — a blockchain-based fitness platform — told Cointelegraph that Global Fit Club will soon be offering NFT memberships to allow users access to a full suite of fitness services. Zulic explained that Global Fit Club is partnering with well-known fitness centers like Anytime Fitness and F45 Training, to ensure that members gain access to more benefits when they hold an NFT membership.
“This isn’t just a gym membership. NFT holders will get discounts on fitness related services such as supplements, personal training and equipment, as Global Fit Club has a number of partners lined up to provide this,” he said. Zulic also noted that Global Fit Club will incentivize users to workout through its move-earn-platform that pays NFT holders cryptocurrency when movement is recorded.
While the concept behind Global Fit Club is innovative, Zulic explained that an NFT-membership model is capable of solving many challenges currently faced by the fitness industry. For example, he pointed out that gym membership prices fluctuate over time, which can create financial difficulties for gymgoers:
“Some gyms have been around for years, once offering memberships for $6 a month. These same gyms are now offering memberships for $50 a month. Users that have $6 membership rates may not use their membership, but continue to keep it so they don’t have to pay more if they decide to go to the gym again. Or, some members may be forced to pay higher fees due to things like increasing inflation.”
Zulic believes that an NFT-based gym membership could solve this problem, as members can purchase the nonfungible token at its floor price and then continue to reap the benefits for life. He added that if a member chooses to cancel their membership, they could resell their NFT and even make a profit depending on the asset’s value over time. “With NFTs, gym members can have full ownership of their memberships. They can lock in a certain rate and then sell their membership if they choose,” Zulic said.
Additionally, Zulic mentioned that while some gyms have loyalty programs that allow members to earn rewards for working out, an NFT membership can ensure that crypto payments are sent directly to a user’s wallet when movement is tracked: “There is actual money behind this, which will help with customer retention and satisfaction.”
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To Zulic’s point, one survey has found that 67% of gym members never actually use their membership. Recent findings also reveal that Americans spend $397 million a year on unused gym memberships. An incentive program that uses crypto payments could very well solve this problem.
Zulic noted that Global Fit Club plans to launch in Quarter 1 of 2023. As such, it’s yet to be determined if NFTs will actually solve challenges associated with traditional gym memberships. In the meantime, industry experts within the wellness sector are starting to take note of the potential behind NFT membership models. Lavinia Errico, co-founder of Equinox Fitness Clubs, told Cointelegraph that she believes NFTs will have a huge value for membership-based companies:
“Fitness, wellness, social, private clubs, etc., all of these businesses are ripe for this huge disruption. Any companies who do not embrace this will be left behind. It’s best to get on board now.”
Errico said that she recently joined the board of advisers for Rafi Lounge, a wellness and fitness space based in Malibu, California, that is currently offering NFT memberships. Rafi Anteby, founder of Rafi Lounge, told Cointelegraph…
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