Let’s look at the unique ways for brands to leverage the opportunity of NFTs and offer unique experiences to their consumers.
The NFT market has witnessed growth every quarter since Q2 2020. The overall volume of buyers and sellers increased from 627,000 in Q4 2021 to 950,000 in Q1 2022. The NFT market is also predicted to grow at a compound annual growth rate (CAGR) of 35.0 percent, which would equate to a $13.6 billion market value by 2027.
These possibilities are enticing big brands to use NFTs for their brand promotion. Metaverse and NFT opportunities have drawn the attention of companies like Gucci, Nike, Adidas, and Coca Cola,who use NFTs to offer a unique experience to their consumers.
The NFT utility opens doorways for brands to engage in unique experiences such as VIP privileges, memberships, personalized experiences, specific asset rights, etc.
Let’s look at the ways in which brands can leverage NFTs to distinguish themselves and offer distinctive opportunities to their consumers.
1. Celebration of product milestones
Moving beyond the offerings of conventional rewards, brands can draw their consumers’ attention with personalized NFTs for celebrating important milestones. This not only unlocks innovative marketing tactics but also distinguishes brands by creating unique digital experiences through NFTs.
2. Bypass typical selling models
NFTs offer a way for brands to integrate them within their infrastructure and introduce new selling models. Brands that can integrate NFT functionality and utility to derive more value. For example, Gucci launched their collection in the Roblox game. Roblox avatars can buy bags, glasses, and hats of Gucci’s limited edition collection through NFTs. Nike also recently unveiled its new digital platform “ NIKELAND”. Here, players can use their avatars to try different Nike products.
3. Using NFTs for the loyalty programs
Brands can leverage an NFT’s proof of ownership to establish and enhance brand loyalty. NFTs are an improvement over existing point systems since they may be accumulated, redeemed, and transferred independently of a conventional user account.
4. Adoption of digital souvenirs for customer engagement
Since NFT records are immutably stored on a blockchain network, it can never be modified or deleted. Brands can maximize engagement with their consumers by allowing them to cherish their brand experiences in the form of souvenirs and collectibles. Brands can monetize unforgettable moments — concerts, runway shows, events, launches, games, and more.
5. Issue of POAPs to event participants
Proof-of-attendance protocols (POAPs) are one of the most intriguing ways companies may leverage NFTs to engage customers. A POAP is an NFT issued to someone as proof of attendance at an event, such as a sporting event or music festival. Brands may use POAPs to increase ticket sales, offer prizes, and build consumer loyalty.
6. Utility tokens
Brands can create more personal and effective experiences for their consumers by concentrating on the usability of NFTs. For example, ann NFT could be a key that unlocks special content, a ticket to exclusive events, or the representation of tangible products in the future.
7. Accelerate community engagement
Brands can boost community engagement by unlocking rewards, special giveaways, and customer loyalty programs. For example, brands can allow their customers to redeem NFT collectibles after completing a purchase milestone. Businesses also host charitable auctions where the auction winner not only wins a special prize, but also has the ability to donate the proceedings of the auction to the charity. Supporting social causes creates a positive image and builds a good relationship with consumers.
8. Digital interaction with the global fanbase
NFTs have radically transformed the digital sports industry. You can take part in fantasy sports leagues and e-sports and take part through NFT sports cards and earn rewards as well. The sports industry witnessed a massive blow during COVID-19, and NFTs can help sports stars and athletes to engage with their new-age digital fanbase. It can also generate a new source of income for popular players. For example, Rob Gronkowski, launched his limited edition of NFT trading cards. Each card is memorabilia that has been numbered and digitally signed by Rob. The highlight of the special edition is Rob’s 1-of-1 career refractor card that allows their fans a meet-and-greet with the star. The series generated a total of $1.8 million.
9. Deploy NFTs to learn consumer behavior
Companies spend millions to build audience databases and learn about consumer behavior and their choices. This is an essential marketing strategy that can help gain valuable feedback from customers regarding a product. Brands can study a focus group and incentivize the customers of the group through NFT payments, discounts, and early releases of their products and services. Brands can allow returning customers to take part in community governance protocol and build long-term relationships with the brand.
NFT marketing has opened up new possibilities for both brands and consumers. While brands can advertise and showcase their products, deliver unique experiences to their customers, and drive sales, it also allows audiences and customers to interact with their favorite brands, artists, and sports stars. Apart from brand recognition, companies can create communities and facilitate customer engagement. NFTs create a win-win solution for both customers and brands. Customers can also earn a unique piece of their favorite products and sell them later to earn profits.
