4 ways Businesses can use NFTs to drive engagement

How businesses can grow using NFTs

Of late, with the rapid speed of advancement in technology, NFTs have become a revolutionary trend in the blockchain market. Headlines about NFTs have become commonplace, and it’s clear that this cryptographic asset is here to stay. 

In March 2021, the NFT of ‘Everydays: The First 5000 Days’, an artwork by the digital artist Beeple, was sold at $69m, the most expensive NFT at the moment. Now, more and more items are being sold as NFTs, and it’s high time businesses at large jump in on this bandwagon.

Given that almost everything can be turned into an NFT now, how can you capitalize on this? As a brand, you can actually gain a lot from using NFTs in your marketing tactics. If used correctly, NFTs can be a great way to increase the number of users as well as keep them interested in the long run.

So what exactly do I mean by “if used correctly”? In the below sections, find all you need to know about using NFTs in your business marketing and how to do it right.

Source: Scale

How NFTs can be advantageous in user building

Blockchain has a vast scope in business across domains. NFTs can particularly help in building a loyal customer base. 

Fact: In 2011, Chris Torres posted a GIF image of the Nyan cat which went on to become a huge sensation. In Feb 2021, he auctioned an NFT of the same and made a whopping 300 ETH (that was about USD 500k at the time)! 

Source: Foundation

The loyal fan base clearly had a lot to give for the Nyan Cat NFT. Can you imagine how much your company can gain from similar NFT sales? The following points give an accurate summary of why you should use NFTs in your marketing campaigns:

  • Early access tokens can generate interest among the community in the lead-up to an important event or launch for your company. 
  • NFTs provide a fresh way to interact with the users and can define unique brand experiences for them. 
  • Your brand gets a new source of revenue from sales of products in a digital format or as a complement to a physical product
  • You can tell your brand’s story in a distinctive way and sell pieces of your brand’s history, for example, your best marketing campaign.
  • The brand can also show support to causes of importance through token sales and increase brand awareness at the same time.

Now that you know that NFTs can be quite beneficial for your business let’s see how to actually reap the above benefits.

4 ways your business can use NFTs to drive engagement

Tokens

The smart contracts that sit behind NFTs can be effectively used to tokenize access to events and products. On a broad scale, they could be compared to Amazon’s Prime service and can be used as digital coupons for redeeming the asset contained. 

For instance, music production companies could consider holders of a particular token as members of an exclusive club that gets premium benefits such as early access to new music by their favorite artists. 

The band Kings of Leon released their album called ‘When You See Yourself’ as an NFT. They sold it through three different types of tokens, each containing exclusive user benefits for a period of two weeks only. This is an excellent way to make fans feel like they own something exclusive that not many others do and increase loyalty.

Source: Morganlinton.com

Making customers holders of such tokens reinforces loyalty. It can also encourage them to spread the word to their friends and get more users to your products. This would create organic growth flywheels and feedback loops and be very beneficial to your business.

Collectibles

Much loved sports brand, Asics, sold NFTs of their collection, Sunrise Red via NFTs. 189 NFTs were sold to just 14 owners. Asics has become the first sports company to move into the NFT space, and the proceeds from the auction will also be used to support digital artists, making the tokens all the more valuable. 

Source: Asics

Enabling customers to own exclusive collectibles is a great way to improve customer loyalty through a deeper sense of connection. Now, since the world is moving towards owning and showcasing things digitally, NFTs are the perfect way to give your customers collectibles they would treasure.

These NFTs can also be sold or traded later for a profit, and such collectibles then become an investment in companies that customers value.

Rewards

The use of cryptocurrencies as rewards has become quite common in the present world, and NFTs are in no way left behind. Special rewards can be given by brands through NFTs so as to keep the current customers engaged as well as lure new customers. These bonus trophy NFTs could be anything from exclusive access to a particular event or a meet-up with a celebrity at a given date and time that is embedded into the NFT. 

Such bonus rewards can be given on a big purchase and give access to a resource such as a discount coupon on a future purchase. Alternatively, you can also get your customers more psyched about it by making the NFT a lottery prize. Contests like this can also be used effectively for lead generation.

For example, if your business is into broadcasting sports, you could organize a contest where people get a chance to win prizes by booking an exclusive broadcast. These prizes could be a virtual meet and greet with a sportsman or ownership of their most popular tweet and the like.

Charity

Auctioning an NFT containing an exclusive, valuable prize for charity is an easy alternative to physical auctions and is also more future-oriented. This is, of course, besides the primary goal of supporting charities your company is passionate about. All proceeds from an NFTs sale can be used as donations to causes that your company supports. 

Taco Bell’s Taco-themed NFT GIFs are a great example of this. The company sold 25 of these NFTs in under 30 minutes, with all the proceeds going to its Live Mas scholarship.

Source: The Verge

Customers are much more likely to buy if they find a good purpose in purchasing an item. Charitable auctions are a great way to allow your customers to support the causes they care about and also improve their affinity to your brand. The winner of such an auction can also be given the opportunity to choose which particular charity the proceeds go to.

Things to keep in mind when using NFTs for marketing

Although the use of NFTs can be of great value to your business, there are a few things that you should consider:

  1. Pace it out – The purpose of using NFTs is to generate interest and retain loyal customers. As such, make sure that you don’t simply rush into selling NFTs but rather provide actual value to the customer. Sell authentic NFTs that your customers would love to own.
  2. Make sure you have buyers – Before getting fancy with NFTs, focus on building a community of buyers who are interested in your product. You can’t just sell an NFT five days into starting your business. Instead, build human connections with your customers first so that they are interested in the product.
  3. Plan – A lot goes into selling an NFT successfully, and you need to plan the process and sale carefully. There are definitely loopholes that you need to steer clear of in the NFT process, and making sure everything is in place would take some time.

Conclusion

In the past few years, crypto has become mainstream and easy to access with a large number of trading platforms. More recently, with NFTs gaining momentum, it is time for businesses to use them to drive engagement. As such, the ideas mentioned above are good starting points towards successfully making NFTs a part of your marketing campaigns and retaining existing loyal customers while gaining more. With the correct planning and execution, your business is bound to see long-term success through the use of NFTs.

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