I've tracked, analysed and assessed 250 consumer brands and how they are using emerging technologies, such as NFTs, to redefine traditional methods for customer engagement.
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Brand Strategies for Customer Engagement with Non-Fungible Tokens
Blockchain technology and digital assets have seen an unprecedented rise in popularity over the past couple of years. This has led to innovative applications of blockchain that are revolutionising businesses. One such application is non-fungible tokens (NFTs).
In this article for Wiser!, l will summarise the ways in which brands can leverage non-fungible tokens for brand engagement on the blockchain. I will also cover some of the challenges faced by brands when they decide to use non-fungible tokens, as well as some examples of successful NFT campaigns.
Unlocking the Potential of NFTs for Brand Engagement
NFTs are digital assets with unique characteristics that can be tokenised using blockchain technology. These assets are digital collectibles that can be used to track and manage operations within a brand ecosystem. A business can use them to create virtual products and experiences, engage customers, increase brand awareness and customer engagement, as well as track customer behaviour and improve customer experience.
NFTs provide businesses with a competitive edge because they allow brands to deliver digital goods beyond what is possible with traditional marketing channels. NFTs also provide an exciting new way for businesses to develop brand relationships with customers by creating unique interactions between the brand and its users.
As the use of NFTs increases, businesses will be able to tap into a new market of digital collectors, increasing brand visibility and demand for their products. This will also help businesses to stay ahead of their competitors in the ever-changing market.
5 Ways That Brands Leverage NFTs to Reach New Audiences
Over the past year, I have tracked, analysed and reviewed the use of emerging technologies, such as NFTs, by 250 consumer brands. From adidas to Zara, from airlines to even a Zoo (do you get the A-Z thing going on here?), I've followed the activities of consumer brands, plus locations and celebrities, who have all used new technologies to enhance their brand and to create new ways to engage with customers and followers.
When it comes to NFTs, the activities of consumer brand strategy breaks down into these 5 ways:
- LOYALTY: Consumer brands are using NFTs as a new way to connect with their audiences and form vibrant communities, making brand marketing a more intimate human experience.
- MARKETING: NFTs provide consumer brands with new channels to market, reaching new audiences and future customers.
- SALES: Brands are using NFTs to create unique digital products or experiences, unlocking new marketing and revenue opportunities (in 2021, Nike sold $180 million of its own branded NFTs.)
- PRODUCTS: The unique characteristics of NFTs and blockchain technology are enabling consumer brands to incentivise user engagement by "tokenising" the brand experience through new products, rewards and benefits, ultimately leading to the increased monetisation of customers.
- ENGAGEMENT: By leveraging the unique features of blockchain technology and digital collectibles, brands can tap into new ways of engaging consumers and create unique experiences that capture their attention.
What Challenges Do Brands Face When Using NFTs?
The possibilities of NFTs are providing a new catagory of opportunity for consumer brands to engage with customers, but there are a few challenges that brands must consider before engaging with the technology.
- Firstly, brands must have the technical expertise to create their own NFTs or use plug-and-play alternatives. This will ensure that customer engagement is seamless and secure.
- Secondly, brands must be able to track customer behaviour and collect data from NFTs effectively. This is necessary for insights into customer preferences and preferences of products and services.
- Thirdly, when it comes to digital scarcity of collectors' items, brands must be aware of it. They need to understand the value and currency evolving through the digital age while using NFTs.
A brand's strategy should be adapted accordingly, so as to reach the desired audience and generate positive customer outcomes.
Examples of Successful NFT Campaigns for Customer Engagement
NFTs are digital assets with unique characteristics and functions that are able to be traded on blockchain-based networks. They've been gaining traction as a brand-building tool for companies looking to create unique digital experiences for customers. Here are some examples from the Brand Strategy Collection on Wiser!
- Starbucks: The brand successfully launched its Starbucks Odyssey, an extension of its traditional rewards program. This new program allows NFT owners to connect members to each other and offer activities, rewards, and challenges. For more, read this.
- NBA Top Shot: The use of collectible cards and digital assets to engage with fans. The NBA partnered with leading collectible-card game-maker Serial Box for a digital-only loyalty program where fans could collect digital assets for exclusive access and experiences.
- Burger King: CryptoKitties integration for a limited-time promotion. Burger King created collectible blockchain-based cats that gained popularity in the market. With this, the brand gained valuable insights into customer's preferences and preferences. It also increased brand awareness by offering a limited-time promotion on these digital cats.
- Coca-Cola: The beverage company launched an NFT campaign to celebrate the FIFA World Cup. This campaign saw the brand launch collectible virtual items that were only available during the tournament's run. In doing so, it offered customers exclusive experiences and merchandise with the aim of increasing awareness among consumers.
- McDonald's: The fast-food giant released an NTL for promotion of its new McPlant burger. With this, McDonald's was able to engage younger consumers through unique digital content that could be shared on social media platforms such as Instagram and Snapchat.
- Gary Vaynerchuk: The social media and brand strategy marketer known as Gary Vee, made $90 million in 90 days from NFTs. On October 1st 2021, Gary Vee sold 5 of his hand drawn cartoons for $1.25 million at Christies. For more, read this.
- Air Europa: Along with blockchain distribution company TravelX, the Baltic airline released the world's first NFT flight ticket series, called NFTickets. Travelers who purchased NFTickets got special access events and other perks. For more, read this.
Stay Up to Date With the Latest Trends in Brand Engagement
Brand Strategy Collection
"Brand Strategies for Emerging Technology" is a unique collection of over 250 consumer brands and their strategies in the emerging technologies of Web3 and the Metaverse. I have tracked, traced, analysed and assessed 250 consumer brands and their projects, initiatives and use-cases in AI, VR/AR/MR, NFTs, blockchain and crypto.
From Adidas to Zara, from Web3 to the Metaverse, this is a comprehensive collection of consumer brands including:
Adidas, AIA Insurance, Alfa Romeo, Asics, Aston Martin, Atari, Audi, Bacardi, Bentley, Bose, Boss, Budweiser, Burberry, Cadbury, Campbell Soup, Carrefour, Champion, Chevrolet, Chipolte, Coca-Cola, DBS Bank, Decathlon, Dior, Disney, Dolce&Gabbana, eBay, Emirates, Evian, Ferrari, Ford, Gap, Gibson, Glenfiddich, Gucci, Heineken, Hennessy, HTC, Hyundai, JBL, Johnnie Walker, Kellogg's, Kia, Kraft Heinz, L'Oreal, Lacoste, Lamborghini, Lavazza, ...
BONUS: The Brand Strategy Collection also lists over 30 celebrities and 20 locations who have adopted these emerging technologies to promote their own brands.
Conclusion
As the digital landscape continues to evolve, brand engagement is becoming increasingly digital and immersive. NFTs have emerged as a new asset that brands can use to cut through the clutter and engage their target audience with personalised brand experiences.
By exploring the possibilities of NFTs, brands can create digital assets that complement their marketing campaigns and strengthen customer loyalty. By implementing successful NFT campaigns, such as personalised brand experiences or blockchain-based rewards, brands can stay ahead of the competition and establish a strong brand reputation.
If youāre looking for more information on brand engagement and want to learn about the latest trends in this space, check out Brand Strategy Collection and the use cases of 250 consumer brands in emerging technology.
Rick Huckstep
Frequently Asked Questions
What are Non-Fungible Tokens (NFTs) and how can they be used by brands?
Non-Fungible Tokens (NFTs) are a new type of digital asset that is gaining popularity. NFTs are used to categorise digital assets such as artwork, gaming, and collectibles. They are unique cryptographic tokens built on top of the Ethereum platform, which represent individual ownership of digital items.
Brands can use NFTs to represent products, logos, and images. This can help boost a brand's value, create cross-selling opportunities, and form an engaging brand community. Brands can also blend online and offline product ownership with NFTs and potentially create a bond between the brand and consumers.
Furthermore, NFTs allow brands to monetise digital products and leverage tokenized loyalty programs.
In short, Non-Fungible Tokens are becoming increasingly popular in the digital world as they allow for tokenising digital items for easy ownership and transferability. Brands can benefit from this technology by boosting their brand value, creating an engaged community, leveraging tokenised loyalty programs, and forming a bond between brand and consumer.
How can a brand ensure its NFTs are authentic and secure?
Authenticity and security are top priorities for brands who are offering non-fungible tokens (NFTs). First, it is important to ensure NFTs have a digital seal of authenticity. For instance, Nike launched its āCryptoKicksā initiative as a way to guarantee the authenticity of their products by using blockchain technology for decentralised asset verification.
Next, brands should track customer behaviour and collect data to improve the customer experience which will help to ensure that NFTs remain authentic.
Finally, they may want to create virtual lockers where customers can access their assets such as Nikeās āCryptoKicksā. This provides an extra layer of security while also allowing customers to access their assets more easily and conveniently.
To further secure NFTs, brands can also reimagine signature items as digital products and auction them off on a virtual runway. This not only secures the token but also adds excitement around the product and brand. Ultimately, following these tips will help to ensure that your token is both secure and authentic.
Further Reading
Rick Huckstep
Rick Huckstep
Rick Huckstep
Rick Huckstep
Rick Huckstep
Rick Huckstep
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