You may have come across the term “NFT” while browsing the internet or scrolling through social media posts. So, what is an NFT? And why should brands care about them?
An NFT (Non-Fungible Token) is a proof of ownership of an image, a video clip, music, or clipart.
One way of thinking about NFTs as digital “posters” which users can display on social media. NFTs offer a mechanism to construct an identity beyond Name and Display Picture for a generation that values its online identity far more than its offline identity. NFTs will be how we show off the brands we care about, the causes we support, the movies we enjoy, and even the things we are happy to own in the real world in the future years. Consider it a Digital Social Brag. You purchase an NFT for the same reason you purchase a favourite brand's T-shirt.
NFT engagement allows you to create your own online identity in the way you desire. The crypto community is currently leading the charge in terms of owning limited-edition digital assets. With a growing population prepared to spend more money on digital assets than physical assets, we can expect this wave to turn into a tide.
Establishing Brand Identity
If your customers value their online identity more than their offline identity, shouldn't you?
In the previous decade, a company's social media presence was crucial in building its identity. NFTs will continue to serve a similar purpose in the following decade. Brands will create NFT programs to communicate their identity, tell their story, and demonstrate their social responsibilities. They can also sell, and give NFT rewards to fans, followers and connoisseurs.
NFTs are what brands will use to develop their digital identity and engage with a new generation of people, regardless of what items or services they sell. They are important to marketers and brand owners for a variety of reasons, not the least of which is that they attract headlines. But it'll be a marketing strategy anytime soon.
Driving Brand Engagement with NFTs
What role will NFTs play in the marketing strategy of brands? There isn't a magic bullet in this situation. Examine how brands have used social media to increase engagement.
“NFTs provide a blank canvas for marketing teams to unleash their creative potential in a way that has never been seen before in order to increase engagement.”
The trends are already being set by market leaders. 100 Pipers Glassware came up with tree-planting NFTs on ngageN platform and donated the earnings to the AROH Foundation, which will plant a million trees. Mattel launched a promotion to sell digital 3D models of their Hot Wheels vehicles. A number of Marvel branded NFTs have been released by Disney. Limited-edition digital sneakers were sold directly on Asics' website, with earnings benefiting in-house digital artists who created the artwork. Taco-themed NFTs were listed by Taco Bell and sold out in less than 30 minutes.
NFTs are a great brand engagement tool since they can help companies generate new revenue streams and deepen their relationships with customers in innovative ways.
They blur the borders between consumer and investor by allowing your audience to own a piece of your brand's history, which can unlock unique perks and be resold at a profit later.
Consider this: If a customer has brought your brand's NFT, how likely are they to purchase items or services from your competitors? That's how you build brand loyalty, right?
Creating a Positive Customer Experience
Non-technical people still face barriers to entry when it comes to NFTs. Most NFTs are listed, purchased, and sold using cryptocurrency on blockchains. This means that consumers must understand how to open and use a cryptocurrency wallet. However, things are improving.
There are now mobile app-based user experiences that do not require understanding of blockchain or cryptocurrency to create, sell, or buy NFTs. There are platforms available that allow brands and businesses to establish and manage NFTs for a range of marketing goals. Marketing and brand executives can assist brands in providing a consistent and seamless NFT experience to their customers.
ngageN is the perfect example for such a platform. It is an NFT marketplace that allows brands to connect with a new generation of audience that place a higher value on their online identity than their offline identity. ngageN is the first platform that leverages NFTs to create brand engagement.
Taking the first step
NFTs are a forerunner of how brands will interact with customers in the digital age. Leaders in marketing are taking their first moves and achieving results. Early adopters will establish themselves as thought leaders and grab the hearts and minds of a new generation. There is no one-size-fits-all approach to getting started. It's more vital to get started than to get everything right. Brands will need to be open to experimenting with this new form of media, just as they would with any new technology.
Interestingly, the barrier to entry is now low, and the user experience that brands with NFTs can provide to their customers is up to par. Leading brands will do well to begin their journey immediately, whether it is to drive customer engagement, establish brand NFT loyalty programs, or generate new revenue streams.
NFTs have the potential to create revenue for brands, irrespective of how unusual the fit or strategy may appear. Engaging with NFTs provides a way to build exclusivity by providing unique experiences, products, membership loyalty programs and other items to your most devoted customers in order to build brand loyalty.