Digitalization has contributed to making assets more accessible and making it possible for value to be transferred over the Internet without any friction, whether it is due to the growth of finance or e-commerce. The existing system is still untrustworthy, though. And to solve this problem NFTs are now in the picture, NFTs are solving various problems and uses of NFT giving a new way for branding and marketing.
In this article, we will look at what is NFT and how brands are using NFTs to grow their business. So without any delay let’s get started.
What is NFT?
NFT stands for non-fungible token. It is a unique digital art / property that cannot be exchanged at its equivalency. For example, your home is unique in the whole world. If someone copies your home design and makes a similar one, then even after that your home will be unique because of its location. This means it is non-fungible in nature.
An NFT is a cryptographic asset that is built using blockchain technology. NFTs have created new opportunities for brand narrative and consumer engagement, which are, as you are aware, the two key tenets of a good marketing strategy and branding. This is one of the main reasons NFTs are significant to companies' business.
NFTs allow you to:
- make distinctive brand experiences
- promote interaction
- raise interest in your brand and product, and
- enhance brand awareness.
Here is how brands can use NFT to power their business.
5 Ways Brands Can Use Nfts To Power Their Business
Selling NFT Based Tickets
Tickets for events like live performances, conferences, and sporting contests might be placed on the blockchain and sold as NFTs by your company. Using NFT-based tickets helps businesses reduce ticket counterfeiting and scams. The verifiable authenticity of stamps also supports a secondary market for stamps. some of the business has already started NFT-based tickets.
NFT Membership Passes
The NFT membership program is made to offer specific benefits to people who purchase digital assets(NFTs). NFT memberships allow initiatives and companies the chance to create online communities that bring together their most devoted patrons.
Holders of NFT-based memberships may be entitled to a variety of online and offline benefits, including access to special events and services, voting privileges, and awards. Businesses may keep a permanent record of NFT transactions due to blockchain technology, making membership status easily verifiable over the long term.
Create Loyalty Programs
Businesses frequently provide loyalty programs to customers based on past purchases because they boost customer engagement and retention. NFTs could be used by businesses to keep track of past purchases and reward customers. NFT-focused loyalty programs, as opposed to conventional ones, give customers a better opportunity to highlight their connections to the brand, which in turn helps the company grow.
Due to the ability to transfer or buy them from others, customers would benefit from loyalty programs supported by NFT. Traditional loyalty programs, where the data lives only within the company's database, often do not offer these functions.
Recently Starbucks with polygon launched Starbucks Odyssey a loyalty-based program for their customer to give a better experience.
NFTs for Sales and Marketing
A brand's entire sales and marketing department can benefit from the NFT community. They can become champions of the brand if the community built around the business is powerful and dedicated enough. By promoting your brand through their own networks, NFT members can assist your social media team and content producers.
NFTs for Fundraising
NFTs can be a great tool for capital raising. Of course, large sales of a single NFT can bring in millions, but they are uncommon. By establishing Decentralized Autonomous Organizations (DAO), companies and brands are getting more success at raising capital through NFTs. Your community can become your investor and that will help to grow your business.
Giving your consumers NFTs is a terrific way to make their experiences memorable. They're a fantastic way to communicate with and involve your target audience. Even though the technology is still developing, marketers must keep an eye on it.
Of course, there is still a lot that is unclear about NFTs, including claims that the market is unstable and worries about the carbon footprint that goes along with it (which is a real concern).
But I think NFT technology will continue to advance and will develop new ways of doing business.