Against the backdrop of the creator economy, NFT platforms for creators have been booming. This is thanks to a wave of trendiness and popularity. The acronym NFT stands for Non-Fungible Token, and it is a digital asset stored on the blockchain. NFTs are not interchangeable, unlike dollar bills, gold, or cryptocurrencies, because each token has a unique value (hence the non-fungible part). Because each NFT is a one-of-a-kind digital depiction of a property, they are called digital collectibles.
NFTs can be anything digital, such as a photo, video, or GIF. While anyone can duplicate or download that file (just as there are many copies of physical art), purchasing an NFT verifies that you own the digital asset. Although conceptually NFTs may appear complex, the logic behind them is quite straightforward: artists or brands get a platform to sell their work, and buyers get a platform to support their favorite artists or brands, expand their collections, and profit from the difference between the purchase and sell price.
Digital art became immensely popular as a result of the NFT mania. For that reason, likely everyone has heard about CryptoPunks, Art Blocks, and Bored Apes.
Meanwhile, brands and eCommerce retailers are dabbling in the NFT market. You may now own some of the NBA’s iconic moments, purchase a Taco Bell “Transformative Taco” or have a “1 Byte Favourites” (which are digital representations of pizza by Pizza Hut Canada).
There is a strong connection between NFTs and online purchases so, if you’re in eCommerce, you might want to take note.
The impact of NFTs on marketing
The rules of the marketing game are rapidly changing. Forget about unauthentic, pushy advertising, following you around like a creepy stranger in the dark. With the rise of NFTs beyond art, it only makes sense that marketing professionals should wake up to the newly arising opportunity to reach consumers and build their brands in an innovative way.
Starting early will put you on the cutting edge, leaving your competitors who are slow to learn or fear major changes – ages behind.
eCommerce brands can use NFTs, for example, to create personalized gifts, early bird access, limited availability vouchers, and much more to their customers. Taco Bell recently joined the boat with a collection of digital taco art. More and more brands are looking up to this technology to find creative ways to drive user engagement. The best of all is that each user engagement can be tracked back to the user without the need of a cookie.
Here are some ways you can use NFTs to enhance your eCommerce marketing:
1. Give NFTs as rewards
Aside from the importance of communicating with potential customers, conducting surveys or beta-testing for the future development of your eCommerce, there’s also the aspect of engagement. Businesses might have a tough time without consumer participation. To encourage their involvement and sustain customer relationships, consider giving them an NFT as a prize for completing the survey. The NFT can be used as a token to provide early access to your freshly released product or other incentives that you believe would entice, engage and retain your customers.
2. Pre-access to new products via NFT
This is somewhat similar to what was mentioned previously. However, this time your soon-to-be-released goods are made ‘trending’ in order to boost sales. Building excitement before releasing a new product has become a major goal for marketers.
For example, NFT pilots for D&G, Burberry and Givenchy generated 6,654,698 new sales.
3. NFT as a tool to increase loyalty
Merchants can utilize the NFT as a loyalty tool comparable to a membership card for an eCommerce store. As a result, the NFT can be used as evidence of membership or purchase. Furthermore, because each NFT is unique, benefits can be customized for each NFT holder, such as discounts, event entry, early access to new products, and so on.
4. Build community for your brand
It’s a good idea to use NFTs in your marketing strategy because the NFT’s sense of ownership may appeal to your customers. People can use NFTs as avatars in the metaverse, forming a connection between your customers/members and becoming the foundation of your community.
5. Make use of scarcity
This might be a clever way to use an NFT by creating a secondary market for it. Consider using the NFTs to give access to an exclusive drop. When someone loses interest in the drop, they can sell the NFT to their pals, and you business can get paid a royalty fee, usually around 10%.
6. Sell digital goods
It’s exactly what it says on the tin – it’s about increasing profits. You can make extra money by selling digital items, or you can use them to supplement your physical goods. This can also assist eCommerce stores by providing customers with unique experiences such as VIP events in the metaverse, or a catwalk show for your next fashion collection.
7. Bringing products into The Metaverse
NFTs are bringing about a new era in the digital world known as the Metaverse with a rapidly expanding set of use-cases. Facebook’s launch of Meta signaled the shift towards a metaverse era where NFT-based augmented experiences might act as pillars for next-generation social networks.
NFTs and metaverses are already intertwined, particularly in blockchain gaming and other interoperable games (the upcoming cross-metaverse experience), where they serve as value carriers for large-scale digital social media.
Users and businesses can now transfer real-world assets and services into the metaverse, a virtual, decentralized (or not) environment.
Are you a creator or a brand?
Are you looking to give new utility to your NFT collection? Or maybe you are a brand looking to explore collaborations with NFT Artists and Collections?
Do reach out via this form:
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