Businesses can use NFTs to create loyalty programs that give customers exclusive access to products and services. This can help companies build a strong community of customers and expand their reach to new markets.
NFTs can also allow artists and celebrities to monetize their work. For example, when BAYC released merch that could only be bought with ApeCoin, they generated media attention and attracted investors.
Digital Ownership
For consumers, NFTs are a way to buy into a digital collectible and gain ownership rights over that item. These tokens allow the purchaser to interact with an artist, a brand, or a game in new ways. NFTs can also help companies keep track of information, eliminating counterfeiting and tracing items, which is particularly useful for supply chains. For example, a luxury fashion company could use NFTs to track each of the materials used in a product.
One of the primary uses for NFTs has been to sell digital art. For instance, in March 2021, a piece of digital art called Every Day: The First 5000 Days sold for $69 million at a Christie’s auction. This was the highest price ever paid for a work of digital art.
Other digital artists are using NFTs to create immersive gaming experiences. For example, the virtual worlds in games like Minecraft, Roblox, and Valorant allow players to collect and trade in-game digital assets. These assets, which are tokenized on a blockchain network, can be traded, purchased, and even traded between users.
NFTs can also help brands develop and strengthen their community of loyal fans. For example, the streetwear brand Hundreds offers a collection of NFTs that reward customers for their purchases and participation in the brand’s online community. These NFTs enable customers to earn in-game rewards like coins and better product access.
Branded NFTs
Branded NFTs allow companies to create unique experiences and add value to their digital offerings. For example, a company that sells bongs could use branded NFTs to promote their workshops and conventions. This would increase customer engagement and build loyalty. Similarly, brands can create NFTs to mark special events or milestones. These can then be auctioned or given away as rewards for loyal customers.
NFTs are well-suited for digital-first brands and those with passionate online communities. This is because they enable brands to communicate with consumers more organically. For example, a brand in a whitelisted NFT community can organize daily activities, generate engaging content, or invite users to virtual events. This can create a sense of community beyond the products, extending to the brand experience.
One company that has found success with NFTs is Norwegian Cruise Line, which uses NFTs to deliver exclusive experiences to customers and support social impact initiatives. However, before adopting NFTs, marketers should consider the goals of their campaign. For example, if they are trying to build brand awareness or attract new audiences, NFTs may not be the best fit.
Loyalty Programs
As NFTs are one-of-a-kind, they’re a great way to build brand loyalty. Unlike traditional rewards programs that can seem impersonal, NFTs allow brands to create a unique digital reward experience for their most loyal customers. Depending on the type of NFT, this could include anything from access to exclusive content to unique physical products.
By connecting NFTs to other digital platforms, brands can create a holistic user experience that adds value and increases engagement. For example, connecting NFTs to gaming platforms allows users to use their tokens in-game, creating an immersive and interactive experience. Similarly, music and event tickets are NFTs that unlock exclusive content and event access.
NFTs can also represent real-world assets, such as property or cars. This gives customers a sense of ownership and security over their digital purchases while providing new revenue streams for artists and creators.
Using NFTs to create one-of-a-kind rewards experiences is an effective way to increase loyalty and create brand ambassadors. However, brands must remember that NFTs are still very new, and the user experience (UX) must be improved to meet demand. By partnering with a UX expert, brands can make NFTs more accessible to their customers and maximize the potential of this technology.
Open Innovation
Businesses can benefit from open innovation with NFTs by using them to involve customers and partners in the development process. NFTs can also help companies communicate their value with customers more easily and transparently. For example, a food processing company may use NFTs to show customers their products have undergone a rigorous process that meets industry standards.
With blockchain technology, NFTs can also help businesses manage supply chains, making tracking the product’s journey and verifying its authenticity easy. This can save companies time and money and improve the customer experience.
Some brands are using NFTs to create immersive digital experiences that engage customers. For example, DressX and XR couture brands are creating extravagant virtual garments people can “try on” through an app, while Nike is selling NFT sneakers that customers can visualize with a Snapchat filter. Sports teams are also experimenting with NFTs to sell virtual merch and collectibles, like tickets and highlights from games.
NFTs can also be used to build communities. For example, Tropee is a platform that rewards community members for making NFT-enabled utilities. This encourages communities to work together and can lead to new business opportunities. NFTs can also enable businesses to create loyalty programs that offer exclusive perks and discounts for customers who buy their products.