In a strategic move to elevate user engagement on its platform, Flipkart has joined forces with the Polygon blockchain network to enhance its Web3 initiative, FireDrops.
The e-commerce giant aims to deepen its involvement with FireDrops by leveraging Polygon’s CDK-deployed Layer 2 chain. This partnership marks Flipkart’s commitment to amplify its Web3 loyalty program, which was introduced earlier this year. The company envisions broadening its offerings from physical items to include virtual assets. Polygon was initially chosen by Flipkart to launch the FireDrops initiative.
With FireDrops, Flipkart is innovating its strategies to boost user engagement on the platform. Numerous brands selling their products on Flipkart are adopting gamification to incentivize brand loyalty, providing users with novel experiences of being rewarded through virtual goodies rather than physical ones.
Flipkart is utilizing Polygon CDK to establish an Ethereum-based zero-knowledge (ZK) Layer 2 network dedicated to the service, ensuring future growth. This collaboration provides Flipkart with various customization options, such as a refined onboarding experience, dedicated block space, and low transaction fees for users. Future upgrades to Polygon CDK will offer enhanced privacy for transaction data, the ability to run the chain without a token, or to use a central bank digital currency, along with access to liquidity in the broader Polygon and Ethereum ecosystems, as stated in an official blog post by Polygon Labs.
Arun Phillips, Chief Marketing Officer at Polygon, announced this development during the Polygon Connect India event this week.
On the official FireDrops website, Flipkart highlights that existing reward programs often feel ‘complex, boring, and broken.’
Since its launch earlier this year, FireDrops has attracted 3.3 million wallets holding at least one NFT that users may have collected as part of a brand reward.
The FireDrops reward program offers users a range of incentives, from mystery boxes and special badges to discount benefits, early access, and freebies. Users can also earn rewards through buying and selling, positioning Flipkart’s approach as ‘the future of rewards.’
Internationally, several other brands are embracing an immersive, virtual approach to give their rewards programs a Web3 twist, ushering in a new era of customer engagement. Notable brands adopting similar strategies include Starbucks, Lufthansa Airlines, and apparel brand Lacoste, among others.
