The Future of Fan Engagement
The Future of Fan Engagement
Fan Engagement
How Web3 is Unlocking
Billions in New Revenue
for Sports Clubs & Brands
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Table of Contents
Uptop: Building
06 Loyalty Ecosystems
16 The Web3 Tech Stack
Written By
Marc Baumann & Sangam Bharti from fiftyone.xyz 2
Why Brand Loyalty Matters
Loyalty is nothing new. In the United States, Loyal customers don’t just buy—they:
the concept dates back to the early 1800s
when merchants began handing out copper Make repeat purchases: Trust drives
coins that could be redeemed for goods or consistency. 45% of loyal customers stay loyal,
services on future visits. even after a bad experience. Mature brands
derive more than 85% of their growth from
Loyalty is a tool that businesses use to reward their most loyal customers.
and retain loyal customers. And for almost Spend more: Loyal customers are willing to
every business, having loyal customers is pay a premium. A 5% increase in customer
better than having non-loyal customers. loyalty correlates with a 25% increase in profit.
No business can make money on customers Stay engaged: They interact with the brand
who are chronic switchers. Loyal customers beyond just transactions.
spend more, more frequently, and for longer. Advocate: They recommend the brand to
The numbers don’t lie: Keeping an existing others, expanding its reach. In fact, 86% of
customer is five to 25 times less expensive loyal customers will recommend a brand.
than acquiring a new one.
Loyalty isn’t just about retention—it’s a growth
Brand loyalty goes beyond a simple strategy.
preference. It’s a deep commitment, where
customers consistently choose one brand,
even when competitors offer similar
products or services.
5-25x 45%
less expensive to keep a of loyal customers stay loyal, even
customer than acquiring a new after a bad experience
one
86% 84%
of loyal customers will of consumers are likely to
recommend a brand stick with a brand that offers
a loyalty program
Followers of 500
Clubs
The reason? They’re treating fans like passive
300
spectators rather than digital stakeholders in
their ecosystem. 200
100
0
Real Madrid FC Barcelona ManU
Uptop’s Open-Loop
Loyalty Ecosystem Fans
The problem: The Cleveland Cavaliers wanted Seamless Integration: Uptop integrates
to deepen fan engagement and loyalty directly with the Cavs’ ecosystem, powering
beyond the game—connecting fans with the the NBA’s first open-loop rewards program
team in meaningful ways throughout the and connecting fans to affiliate brands in the
year. community, from grocery stores to local
restaurants.
The solution: Partnering with Avalanche and
Uptop, the Cavs launched Cavs Rewards, a Started on October 25, 2024, every Cavs Rewards
blockchain-powered fan loyalty program that member gets a blockchain-powered wallet,
enhances the fan experience with real-world automatically storing their engagement history.
value and rewards. This data is gold—it enables brands to target,
reward, and engage fans like never before. Uptop
Here’s how Uptop elevated the fan takes fan engagement beyond the arena,
experience: enabling the Cavs to track and monetize fan
spending off the court. Unlike traditional loyalty
Convenience: Fans can link their credit or programs, Uptop’s open-loop system captures
debit cards to automatically earn loyalty fan activity at scale.
points on everyday purchases.
Reward Variety: Points can be redeemed
for tickets, VIP experiences, team
merchandise, and exclusive autographed
memorabilia.
8
The best part? Everyone wins: club, fans
1M+
and partners. Uptop's innovative approach to
fan loyalty has proven to be highly effective in
driving engagement for partners:
40%
local merchants (restaurants, gas stations,
grocery stores) buy Cavs-branded points.
Fans earn rewards by shopping, extending
increase in member spend at engagement far beyond the game day.
participating sponsor locations Seamless Card Linking & Purchase
Tracking: Fans simply link their existing
1000s
introduces exclusive on-chain
achievement badges that recognize
different tiers of fandom. These collectible
Thousands of fans are participating, badges give fans bragging rights and
with multiple affiliate brands—from enhance their sense of recognition and
grocery chains to quick-service
restaurants—on board. status within the community.
Referral Incentives: Uptop also
encourages fans to refer friends,
amplifying the network effect. Each
The sports industry is a sleeping giant. The Cavs referral increases program adoption,
didn’t decide to build on blockchain—they just creating a growing, engaged community.
needed a way to monetize digital fan
engagement. Uptop had the answer, and now The sports industry isn’t waking up to
they’re pioneering a model that could redefine blockchain because of hype—it’s waking up
sports loyalty worldwide. because the technology delivers. Uptop didn’t
choose blockchain for buzzwords; they chose
it because it’s the most strategic way to build
a fan engagement program that actually
works. Better data tracking, seamless
scalability, and a frictionless digital experience
—blockchain makes it all possible.
9
How Web3 Is Reshaping
Fandom
In 2024, sports teams leveraged blockchain to
attract and engage the next generation of fans.
Major partnerships are proving that Web3 is more
than hype—it’s the future of fan engagement.
ATP Tour
Watford FC
13
Feature.io: Connecting Fans
to Content
Similar to sports, blockchain-powered rewards, Real-Time Triggers: Sports teams can use
interactive content, and real-time engagement stadium presence & streaming behaviours for
are deepening audience participation—and instant offers.
they’re unlocking entirely new revenue streams.
In short: Feature treats moments and content as a
Sports clubs and brands are spending millions dynamic, programmable asset. Every interaction
on advertising, sponsorships, and content — but becomes new revenue, real-time insights, and
do you really know who’s engaging? provable loyalty. This is the next frontier of the
Fan engagement is broken. Brands spend engagement economy.
billions on ads that fans ignore. Teams struggle
to monetize beyond ticket sales. QR codes? Example: Instand Fan Rewards at
Dead on arrival.
Concerts & Music Festivals
Feature.io solves the last-mile problem of fan
You’re at Coachella, watching Drake perform.
and viewer engagement by turning passive
Before his final song, a push notification pops up:
audiences into trackable, monetisable
“Vote for Drake’s encore song & win OVO merch!”
customers using Smart Content™ technology
You vote, and Feature.io instantly sends a 10%
and the Avalanche blockchain. No QR codes, no
discount to your festival app.
extra steps—just instant, frictionless rewards.
Bonus: The next day, you get a VIP early access
code for Drake’s upcoming tour.
In short: Every viewer interaction turns into a
monetizable and trackable moment. Feature.io connects with the official festival app (e.g.,
Coachella App). Since fans scan their tickets at entry,
Next-Level Engagement the system knows who is inside. Instead of just entry,
a ticket unlocks interactive perks (exclusive rewards,
Sports teams and entertainment brands benefit merch, VIP access). This increases ticket demand,
from deeper fan connections and new revenue making fans more willing to buy official passes rather
streams through premium ad placements that than risk scalpers.
guarantee real-time engagement. Media
platforms leveraging Feature.io can unlock This level of first-party engagement data is a game-
higher CPM rates by offering brands verified changer for advertisers and sponsors, who can now
audience interaction metrics, something prove ad effectiveness and retarget engaged
traditional digital advertising cannot match: audiences with precision.
Results:
100M impressions in 60 days with a For brands
Connect through push
sub-$250K investment.
notifications based on content
ROI through smart content integration interaction
and audience insights. 60%+ engagement vs traditional
Actionable data on viewer behaviors to ads (~2%)
refine future campaigns. Know who engaged and who
converted
Segment and re-engage fans
who interacted
Lollipop Racing: Porsche & Mobil 1
For teams & platforms
Partnership
More revenue: Feature-enabled
ads command e premium
Streamed series of an interactive fantasy Monetize beyond sponsorships
motorsport game. Created by Feature and Enhance fan experience through
gamification
written and executive-produced by The Fast
and the Furious creator David Ayer, Lollipop
combines a traditional episodic series with an
interactive strategy game that enables fans
to engage with each race and impact the
story as it unfolds.
Results:
5M+ impressions and 2M+ views.
78% reward engagement rate.
6.8% viewer-to-user conversion,
demonstrating high user retention and
participation.
Brands and corporates have experimented a lot in Turn consumer loyalty to brand loyalty: Turn
Web3, but building lasting consumer loyalty consumer loyalty into brand loyalty by aligning
remains a challenge. While token-gated your rewards with your brand’s core values and
communities, NFTs, and blockchain integrations story. Offer perks that resonate emotionally, like
have shown potential, many initiatives fail to go exclusive content, early access to products, or
beyond novelty. Here are a few takeaways that can branded experiences that deepen the
help brands strategize focusing on personalization, connection.
community-driven experiences, and actionable Pro Tip: Use loyalty programs to tell your
rewards: brand’s story—every reward should reinforce
why consumers chose you in the first place.
Deliver instant gratification: Fans respond to Trace each touchpoint and utilize data: Create
immediate rewards. Offer perks like discounts, touchpoints that keep fans engaged during the
exclusive content, or limited-edition collectibles off-season, like digital watch parties or interactive
directly after purchases or interactions. social media campaigns. Analyze purchase
Pro Tip: Use QR codes, NFC technology or patterns, event attendance, and digital
instand notifications (cf. Feature.io) at interactions to tailor offers. Fans are more likely to
stadiums to trigger real-time rewards for engage when they feel the experience is built just
attendees—like a free snack or exclusive for them.
merch access.
Experience over product: Prioritize meaningful
Build a community: Loyalty isn’t just about social experiences over products. Fans remember
points—it’s about creating a sense of how they felt more than what they bought.
belonging. Build a membership model where Create shared moments—like live events, fan
fans feel like part of an exclusive community, challenges, or interactive content—that build
with unique perks like behind-the-scenes emotional connections and deepen brand
access or live Q&A sessions with players or affinity.
entertainers. Pro Tip: Design experiences where fans
collaborate or celebrate together. A strong
sense of belonging drives loyalty far beyond
individual purchases.
“We’re building what hasn’t The future of fan engagement belongs to those who
been done before—a scalable, move beyond transactions and build lasting, data-
blockchain-powered loyalty driven connections—because in the new era of
sports, loyalty isn’t earned, it’s engineered.
network where teams, brands,
and fans interact seamlessly. If
McDonald’s sponsors the Cavs,
that same rewards system
works for Real Madrid. One
system. Infinite monetization
opportunities.”
– John Timoney-Gomez,
Co-Founder, Uptop
17
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