Have you been hearing about NFTs but don't know what they are?
NFTs, or Non-Fungible Tokens, are a new type of digital asset that is quickly gaining popularity. They have the potential to revolutionize the way brands interact with their customers and create more engaging experiences.
Want to learn more? We've created this guide to explain everything you need to know about NFTs and how you can start using them in your brand strategy.
Let’s dive in and find out about this exciting, new technology.
What Are NFTs And How Do They Work?
Source: Campaign Asia
Unlike traditional assets, such as currency or stocks, NFTs cannot be replaced or interchanged. This allows for the creation of unique digital items, such as art, collectibles, gaming items, and more whereby ownership can be verified.
While NFTs are still in the early stages of development, there is potential for them to change the way we interact with digital content.
For example, NFTs could be used to create unique experiences, such as virtual reality worlds or products, content, or services that can only be accessed by the owner of the corresponding NFT.
Additionally, NFTs could be used to verify the ownership and provenance of digital artworks. As the technology develops, we will see even more innovative applications for NFTs.
The Benefits Of Using NFTs For Brand Awareness
NFTs have been gaining popularity in recent years as a tool for businesses to increase brand awareness. By creating NFTs or NFT collections, businesses can attach digital assets to their brand, which can then be traded or sold by customers.
This allows businesses to tap into a new market of digital collectors and create lasting relationships with their customers. By releasing verifiable, collectible, items that can increase in value and be bought and sold, it adds a brand-new dynamic to how customers interact with your company.
In addition, NFTs can be used to track customer behavior and collect data that can be used to improve the customer experience. As NFTs become more common, businesses that are early adopters of this technology will have a competitive advantage.
How To Create A Successful NFT Campaign
From digital art and gaming to collectibles and licensing, NFTs provide a new way for creators and businesses to monetize their work.
By including NFTs as part of your brand strategy, you can provide your customers with a unique and valuable way to engage with your company.
Here are a few practical steps for incorporating NFTs into your brand strategy:
1. Decide what type of NFT you want to offer
There are many different types of NFTs available, so it's important to choose one that aligns with your company's goals and values.
Do you want to offer an NFT that represents ownership of a product or service? Or do you want to create an NFT that can be traded or sold on a secondary market?
Evaluating your options and making a decision about what type of NFT you want to offer will help you create a more targeted and effective brand strategy.
2. Incorporate NFTs into your existing marketing campaigns
If you're already running ads or promotional campaigns, consider adding an NFT component to increase brand engagement and excitement about your brand.
For example, if you're promoting a new product launch, consider giving away an exclusive NFT with each purchase. Or if you're running a contest or sweepstakes, consider making the grand prize an NFT instead of a cash prize.
Adding an NFT component to your marketing campaigns will help you stand out from the competition and attract attention from potential customers who are interested in collecting and trading digital assets.
3. Offer customer incentives for buying or holding your company's NFTs
Many people are motivated by the potential to make money from buying and selling digital assets.
As such, offering customer incentives for buying or holding your company's NFTs can help foster loyalty and encourage customers to become more active advocates for your brand.
You could offer discounts on future purchases or exclusive access to new products for customers who buy or hold a certain amount of your company's NFTs.
For example, a payment processor could create an NFT that can only be used to make payments on their platform. This would give users an incentive to collect the NFT and show it off to their friends.
In addition, the payment processor could use the NFT to run promotions or offer discounts to users who hold the token.
By offering these types of incentives, you can encourage customers to view your company's NFTs as valuable investments rather than simply digital assets.
4. Use data from your customer's interactions with NFTs to improve your products and services
As customers interact with NFT-based products and services, they will generate data that can be used to improve those offerings.
For example, if you offer an NTF-based loyalty program, you can use data about customer behavior to refine the program and make it more effective at driving customer loyalty.
Additionally, data collected from NFT interactions can be used to improve your overall marketing strategy by helping you better understand what type of content and offers resonate most with your target audience.
5 . Promote transparency and trust by being upfront about how you plan to use customer data
In the wake of major data breaches at companies like Facebook and Equifax, consumers have become increasingly concerned about how their personal data is being used by businesses.
As such, it's important for companies that plan to use NFTs as part of their business model to be transparent about their data collection practices.
Failing to do so could damage your company's reputation and alienate potential customers.
When promoting your NFT products and services, make sure to include language that explains how customer data will be used and clearly outlines any rights customers have to Opt-Out of having their data collected.
Being upfront about how you plan to use NFTs limits any backlash you might get from utilizing a new technology that people aren’t used to.
Examples Of Successful NFT Campaigns
In the past year, a number of successful NFT campaigns have been launched.
One such example is the virtual art gallery known as SuperRare. SuperRare allows artists to sell their digital artworks as NFTs. The platform has been hugely successful, with some artworks selling for over $100,000.
Another successful NFT campaign is Decentraland, a virtual world where users can buy, sell, and trade virtual land parcels using NFTs. Decentraland recently held an auction of premium virtual land, which sold for a total of $2.6 million.
Starbucks also launched its Starbucks Odyssey, which is an extension of its traditional rewards program. NFT owners can now connect members to each other and offer activities, rewards, and challenges to members.
Loyalty NFT stamps can also be bought, collected, and traded in exchange for premium benefits and rewards, and holders of NFT can connect with each other, almost like having the NFTs act like digital business cards.
Finally, Royal Perks is an NFT program launched by Burger King, which gives customers an NFT collectible game piece with every order. When 3 pieces are collected, customers receive rewards such as free food, celebrity connections, or other valuable NFTs.
Source: Burger King
These examples show that there is huge potential for NFTs as a way to monetize digital assets.
The Future Of NFTs And Brand Awareness
While the future of NFTs is still uncertain, there is potential for them to become a mainstream way of buying and selling digital content. For brands, NFT's offer a new way to generate awareness and connect with consumers.
Also, because customers hold something of value that may have demand around it, they’re able to interact with the company in ways that we’ve never seen before. Customer retention and overall brand awareness and connection are therefore also increased.
By creating NFTs that represent their products or services, brands can reach a wider audience and create experiences that bring ongoing value to everyone who interacts with your brand.
As the use of NFTs grows, it is likely that we will see more brands experiment with this new technology.
Now that you understand how to incorporate NFTs into your brand strategy, take the time to consider if it's the right move for your company.
We’ve seen how NFTs can be used to improve branding and that they can act as a powerful marketing tool, which can help create a more personal connection between brands and customers.
Additionally, NFTs are unique in that they offer an added layer of security for customers. They can provide proof of ownership and verification for digital assets — this makes them ideal for use in online transactions.
Finally, NFTs are also great for building customer loyalty programs that can be extended by offering more services, specials, events, and prizes. So, we hope this article has helped you understand the potential uses of NFT technology for branding and allows you to level up your marketing strategy going forward.