Ownership of NFTs can enable new ways for a brand’s most loyal customers to access incentives and engage. NFT owners can promote the brands they adore as part of their digital lifestyles and that strengthens the mutually beneficial connection.
The true potential of brand NFTs lies in their potential to serve as the foundation for a more engaging and multidimensional digital customer interaction. Dropping and minting an NFT with every consumer transaction can establish a dynamic digital entry point that is specific to the goods being purchased and the brand that sells. This is an amazing opportunity and innovative way to establish new loyalty programs that could evolve into a new post-sale engagement.
Savvy marketers are using already using NFTs to create next-level fandoms. The technology takes users aside from the platform-centric marketing landscape of web2 and takes them to web3 where people can take control over their digital customer interactions.
What is a brand community?
Brand are powerful if they are the first one that springs to mind when someone thinks about an industry. However, just because I think of Kleenex when I need tissues does not imply that their brand community is prospering. What should you look for to determine if a brand community is effective? Strong brand communities are exceptionally effective in motivating their customers to perform three things:
Join -> Engage -> Share
Are your customers excited to join?
Any company can excite the community and it doesn’t need to be a social enterprise like MudLOVE to establish a sense of belonging. Knowing what your consumers care about and getting them to join you in celebrating being together is all that is required. A person with a special NFT is invited to pre-purchase a hot new product. Or, purchasing a product results in an NFT invitation to an exclusive event.
Marketers can now build digital experiences that extend beyond the physical goods in meaningful ways. Physical and digital encounters create a fully integrated brand experience across all channels. NFTs are equally effective as membership tokens or tiers for a brand loyalty program, or even as branded NFT rewards due to their customizability and composability.
Tokenized loyalty programs and NFT rewards are jumping in to represent the next bit thing in community engagement. Customers are increasingly hesitant to join classic loyalty programs because they believe the value delivered is not sufficient to justify joining. This is paving the way for NFTs to usher in a new era of consumer involvement based on scarcity and exclusivity.
NFTs motivate customers to engage
Once a member has joined a community, he or she must regularly participate to be called an active member. Strong communities encourage members to participate in ways that have both short- and long-term advantages. Long-term engagement could be as simple as incentivizing members to attain the prestige of VIP status at the highest level, like the NYC Ape Fest. Smaller-scale micro-actions help community members in the near term by encouraging regular and continuous engagement, like getting an NFT alongside a garment sale which will unlock future discounts.
Why are brand communities important?
Engaged communities of particular brands may frequently return to purchase more products or services.
Airports and airlines could integrate gamification to create new types of VIP lounge experiences for passengers in the metaverse. Imagine hanging out in a 3D lounge meeting people and enjoying chats with travelers not just at Istanbul Ataturk airport but also in New York, Singapore … Dubai. This, combined with future incentives could make airline passengers want to come back for more and opt to fly with your company.
When customers build a community around a beloved brand, they are frequently very vocal about it. They may refer the product to their friends and family, and genuine and hyped-up peer referrals are a marketer’s dream. According to studies, simply following a company on Twitter, a kind of brand community, improves the likelihood of recommending and purchasing that company’s products or services by at least 50 percent.
Marketing ideas and research
Some of the most innovative ideas originate from within brand communities. They promote a free flow of knowledge and desires, without the need for a research team to coordinate it, tapping into what people would really love next. Caring businesses transform these comments and queries into new products and designs, which further satisfy customers.
How brands can use NFTs to revolutionize engagement?
A primary objective of every digital team is to find actionable insights and transfer them into business possibilities. Through email marketing, DTC sales, and more, businesses invest a significant amount of money in establishing audience databases to target and engage for testing and learning purposes. Whether it’s a survey or a focus group, these feedback techniques typically entail encouraging the group with direct payments or discounts on future items and services.
Nowadays, a corporation may offer NFTs in exchange for user feedback on pain points, marketing claims, flavors and smells, promotions, and prices. Exceptionally devoted buyers would receive something more distinctive and individualized than a discount code.
The ownership of these NFTs may also open early access to exclusive products or experiences that have been curated especially for the brand’s users. Marketing might collaborate with NFT owners to enrich the connection between a brand and its representatives in creative new ways – like customer support in the metaverse.
Similarly, a firm might incentivize its communities to generate content and brand awareness in the metaverse. A corporation might award NFTs to those who get the most eyes on in-world testimonials, product reviews, or articles about the company. This produces a flywheel effect when the company releases fresh NFTs based on campaigns or special events, generating further content.
Building digital communities with NFTs
Identities and tribes in The Metaverse
New communities can form in the Web3 universe. You can switch between avatars and be a member of different groups, but your avatar of choice can be remembered by the community where you have the most fun.
Social standing as collateral
In the real world, we might instinctively attribute credibility to others based on their social status, or looks. This is the case when other chosen data points are difficult to verify. In the microfinance industry, for instance, borrowers can obtain loans as long as their peers attest to their credibility. In an anonymous online environment, it can be difficult to locate trustworthy data. However, what individuals can do is display their NFTs, which symbolize the communities in which they ‘reside’ and probably their status within.
NFTs as brand community membership tokens
NFTs within gamification can be utilized as prizes or “bounties” for accomplishing certain community tasks. Leaderboards can contribute toward recognizing the most valuable participants in a community. And specific NFTs can be granted access to more exclusive tiers or VIP subgroups, enabling greater influence and standing within a brand’s community.
The take for your brand community
The objective is to maintain member engagement and always seek new ways to reward the long game rather than short-term rewards. Instead of randomly releasing NFTs, brand communities should drip a steady stream of products, signals, content, incentives, prizes, tokens, points, interactions, and events.
Consider moving marketing resources and attention from seasonal campaigns and releases to investing in ongoing interactions with members across all online and offline touchpoints with the support of NFTs.
By combining real products with non-fungibles, brands develop microeconomies in which customers become enthusiasts, collectors, traders, and eventually co-owners of the brand.
Web3 represents the next phase of the consumer internet, with peer-level community interaction and owning your digital identity as the next frontier. By matching incentives between brands, employees, and customers, new and distinct types of growth mechanisms are created. NFTs let your brand go beyond isolated efforts or rewards to produce long-lasting value and loyalty.
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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?
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