Companies from all around the world have jumped into the NFTs competition in order to rethink their branding and get closer to untapped customers, investing in new NFT strategies.
Non-fungible tokens (NFTs) are the newest instrument for showcasing how the concepts of value and currency are evolving in the digital era.
They are highly valuable and have caught the attention of investors, art collectors, gamers, and tech enthusiasts from all over the world.
Many businesses are already taking note, consolidating their status as market leaders in the process.
NFTs as the foundation for a complex digital consumer connection is the actual promise.
What is the value of NFTs to businesses?
The ability to represent digital items such as art, audio, and video is one of the key reasons NFTs are significant to businesses.
NFTs are making a major impact in the corporate sector because they allow organizations to provide digital evidence of ownership, attendance, and even transference to various experiences they deliver to their customers.
They're so adaptable that they can be utilized to represent a variety of different types of creative work, including virtual real estate, virtual worlds, fashion, and much more.
What does this have to do with your marketing strategy and brand?
NFTs have opened up new means of brand narrative and customer contact, which are the two major pillars of an efficient marketing strategy, thanks to the global attention they've produced.
You can use NFTs to:
- develop distinctive brand experiences
- raise brand recognition
- stimulate interaction
- pique interest in your product and brand
NFTs can ultimately help you increase conversions and revenue.
Here are some examples of how companies are utilizing NFTs in their marketing efforts.
6 Ways to Incorporate NFTs into your business
1. Create NFTs tied to Physical Products
Given the popularity of virtual products, it's a smart idea to build one for customers, and even better, to link it to a physical one.
A furniture store, for example, might encourage customers to buy a couch and an NFT version. With CryptoKicks, Nike is attempting something similar, where clients receive a digital pair of sneakers after purchasing the actual item.
This is a chance for eCommerce enterprises to increase profits. Because NFTs are inexpensive to produce, the profits can be enormous.
Furthermore, the smart-contract method may enable NFT developers to profit from future item sales. A corporation can claim a part of future revenues and program the capability into the NFT if it so desires.
2. Sell NFTs to Virtual Audiences
People can acquire virtual real estate and dress up their avatars in beautiful clothes in the Metaverse. Smart firms can profit by commissioning branded NFT things to sell in virtual environments such as Decentraland.
Nike is once again ahead of the curve in this area and has filed patents for virtual sneakers aimed at in-game viewers and virtual world residents.
Coca-Cola also offered a virtual NFT bubble jacket to commemorate its 200th anniversary, demonstrating another good business use case for NFTs.
The potential of NFTs for business is endless: branded sneakers, apparel, and devices.
A business owner merely needs to create an NFT version of a physical product and sell it on Rarible, OpenSea, or any other NFT marketplace.
Tokens-as-virtual-products is, indeed, one of the best business applications for NFTs.
3. Use Limited-Edition Merchandise to Increase Brand Loyalty
Limited-edition products have helped brands reward loyal customers and gain greater awareness. Small firms can now accomplish the same thing with NFTs.
Taco Bell notably issued taco-inspired GIFs (called NFTacoBells), which were quickly sold out.
Coca-Cola also offered a digital "loot box" with a variety of NFT items, including a revamped Coca-Cola logo and a virtual jacket.
4. Reduce Counterfeiting of Products
For years, businesses have tried unsuccessfully to stop the selling of counterfeit goods. However, a fresh study suggests that NFTs could assist counter counterfeiters.
As previously stated, NFTs exist on the open, immutable, permissionless, and trustless blockchain ledger. As a result, determining ownership and validity is simple.
When used in trade, an NFT linked to a tangible product can assist prevent counterfeiting.
Customers might scan an item's NFT barcode to verify its authenticity.
Ackerwines, a specialty winery, sells wines with companion NFTs, and this is already happening in the luxury products business.
Other things that businesses would rather not be counterfeited can also be protected using this technique. Event tickets, discount coupons, ownership certificates, licenses, and other items fall under this category.
5. Raise Funds for Social Causes
While most individuals are helpful, many would feel better if they were compensated for their philanthropic contributions. What better way to thank supporters than to give them the opportunity to possess a hyper-rare NFT?
Some of the brands that use NFTs to collect money for social causes are Taco Bell and Coca-Cola. Other firms can follow suit by selling company artifacts as NFTs and donating the money to charity.
This strategy may assist enhance a company's profile and improving public perception in addition to creating buzz.
6. Make Supply Chain Management Better
Supply chain management is one of the best business applications for NFTs.
Businesses may trace things across the supply chain more easily by stamping NFT-enabled tags on tangible commodities.
At various stages of the manufacturing process, each NFT can be updated with important data.
For example, data on the origin of raw materials and manufacturing procedures may be stored in product-linked NFTs on the blockchain. If a defective product is brought into the supply chain, companies can rapidly recognize it.
Customers can verify a product's manufacturing data because blockchain information is public. This is a great technique to reassure shoppers about product quality and originality.
So, is having an NFT strategy the right thing for my business?
You need a framework to make a fast but still informed decision whether you're considering the benefits of building your own brand's NFT today or getting into any new marketing channel or plan that comes in the future.
Take advantage of the opportunities presented by a new channel or marketing plan while reducing the dangers by using this simple formula, which may be adjusted to your specific needs:
1. Do your homework:
Determine the nature and operation of the new channel. Learn the fundamentals of the new channel's base, whether it's a new technology, business strategy, audience, or set of operating regulations.
2. Consider the disadvantages:
Each new technique or channel will have its own set of disadvantages, and someone will have to pay for them, whether individually (as in the case of increased legal or financial risk) or societally (as with environmental damage or societal costs of misinformation).
3. Outline the benefits:
What benefit can you expect from investing in or implementing this new channel or strategy? Make a list of the tangible and intangible advantages. the end result turns out to be.
4. Conduct a risk assessment:
Consider the worst-case scenarios and the implications for your brand. To get a good sense of what you're likely to encounter no matter what the decision is, weigh the disadvantages against the benefits.
Most companies don't want to be in the business of generating and selling digital art in the long run. It's critical to link your NFT collection to your brand identity.
The good news is that NFTs' actual influence will emerge gradually over the next few years, giving us plenty of time to find out where we fit in.
Your ultimate audience will be all of your current and future clients, not just the bitcoin community today.
So don't judge your success by your OpenSea NFT prices.
Rather, focus your measurements on those that will help you envision a future in which NFTs anchor all real-world products and experiences while extending them into the digital realm of your choice.
As markets become more fluid, dynamic, and non-linear, companies will need a next-generation growth strategy shaped at the intersection of analytics and visionary creativity, not just filtering obvious options but creating new ones.
Going beyond just where to play to a richer how to win, and translating strategic choices into a vision capable of inspiring an organization.
Experiment, but with authenticity and an eye on the future.