Ways Brands Can Use NFT to Grow their Business
The market capitalization of NFTs as of the second quarter of 2022 is US$8 billion. News about NFTs is everywhere. People are making a fortune selling digital artworks using a computer. Can brands take advantage of this trend to grow and market their business while increasing customer loyalty and engagement?
Due to the massive advancement, many business experts have advised that the future of business is gradually switching to NFTs. This is because, with NFTs, trading is safe and secure. There is no fear of theft of virtual products or services.
But before we dive into how brands can use NFTs to grow their business, let’s understand NFTs. What are they and how do they work?
What are NFTs?
NFT stands for Non-Fungible Token. It is a digital asset with a unique signature that buyers can buy and claim ownership of. It lives on blockchain technology and can be anything from artwork, music, videos, GIFs, games, etc.
Unlike cryptocurrencies, NFTs cannot be traded or exchanged with any other unit. NFTs use the same technology as cryptocurrencies but they are different as they are non-fungible. The word ‘non-fungible’ means something that cannot be exchanged or traded at equivalency with other NFTs.
A non-fungible asset is completely unique and it’s neither replaceable nor divisible.
“NFTs are digital assets on the blockchain with a unique signature that interested persons can buy and claim ownership of”.
Why Should NFTs Matter to a Business?
NFTs are unique, trackable, and can be easily bought and sold. With NFTs, digital assets can be protected from fraud, forgeries, and fakes. One distinguishing feature of assets minted on the blockchain is that it has clear and transparent provenance that cannot be duplicated or copied. These features and many more make NFTs valuable and sort after.
With NFTs, businesses can create monetization opportunities, as each NFT token includes a history of ownership, which is easily accessible and verified on the blockchain via a distributed network. What this means is that a digital asset can now be uniquely created, distributed, managed, and measured via a blockchain.
With this feature, brands can create, manage, and monetize digital assets like never before.
NFTs also provide brands with a host of new possibilities when it comes to marketing. Businesses can now create content that has viral protection without concern for theft.
Another obvious benefit of NFTs to businesses is brand awareness. For example, brands like Taco Bell and others have generated free press as early adopters with the release of their NFTs.
5 Ways Brands Can Use NFTs to Grow their Business
Companies are slowly starting to use NFTs as a marketing strategy and here are 5 ways you can use NFTs to grow your business and build strong customer loyalty and engagement.
NFTs as Receipts
Ecommerce brands that sell physical products can use NFTs as receipts for each product bought. This comes with a lot of benefits. It authenticates each product, serves as proof of ownership, serves as an efficient way to track purchase history, and prevents the birth of a counterfeit market of your product.
Customers will be very happy to do business with your brand as you are giving them the opportunity to prove that they are the rightful owner of any item they buy from your store. Thus, preventing the items from being theft or false accusation.
Also, customers can trust the product they buy from your store since they get a digital certificate secured on the blockchain.
As mentioned earlier, with NFTs, brands can create assets that live in the digital world and generate cashflow for their business. Gaming brands can create digital products that can only be used in games.
For example, an online car racing game company can create a special car with exceptional features that can only be used in online racing games and is only available through the purchase of an NFT. Because players want to use this special car, they will have no choice but to buy your NFT.
RTFKT, a Chinese virtual sneaker company disrupt the market and made a name selling one of their NFT sneakers for a whopping $28,000.
Truly, there is no limit to the number and kinds of digital assets brands can create with NFT to generate money for their business.
NFTs As a Reward
To really create a media buzz, brands can create a free NFT to reward loyal customers. A brand can create a limited artwork to celebrate any festive period or anniversary and run a marketing campaign around it.
This NFT can be given away for free for every item purchased during that giveaway period. This is one way to win customers’ loyalty and engage them with your products. You can go as far as printing the NFT on a T-shirt to be given to customers. This will result in increased product engagement, retaining customers, and free marketing.
Other brands are using this marketing strategy to keep their customers coming back and getting new customers. Your brand shouldn’t be left out.
NFTs As a Utility
Brands can create an NFT that can be used to perform a special action or that comes with an intrinsic value. They can create an NFT that can serve as a ticket to an exclusive event, a loyalty code, a payment card for a particular utility, or something that can be swapped for a product or service, etc. And set criteria on how customers can qualify to get the NFT.
This is another way to differentiate your NFT from your competitors. And with a well-planned marketing strategy, can lead to increased patronage as customers will be fighting to qualify to get the NFT.
Build a Strong Community
With NFTs, you can build a strong community around your business. What if you offer every customer who buys from your website an NFT they can download on their phone and use to redeem an item on the website or sell for cash?
The goal is to get people talking about your brand and what you are doing with your NFT. And this is one way to achieve that. This is how you make customers enjoy doing business with your brand.
Introducing NFTs into your business is one way to increase connection with your customers and build lasting relationships to keep them loyal to your brand. The early-stage use of NFTs by brands provides exceptional PR buzz levels that boost awareness, and brands can use it as leverage to grow their business.