Cryptocurrency has surely witnessed a turbulent time in 2022. What was once all the hype and talks suddenly came tumbling down?
But similar to readjustments in the stock market, the rise and fall of Crypto could potentially be a chance to readjust a market spiralling out of control. Cooling down the market weeds out short-term buyers and, hopefully, in the long run, rewards those who hang on long enough to see where these new technologies will take us.
Recently, we have had business owners approach us who see the crash as an opportunity to rise above and to be even more committed to doubling down on experimenting with NFTs.
Now, we know that the limitless creative potential in NFTs can also be what’s most nerve-wracking. Where do you even start when the final product could literally be anything in the digital space?
Co-created this article with Prism Creative, a mission-driven branding & creative agency, we will explore how brands can implement a more seamless continuation of their digital experiences into NFTs.
If you are confused about using NFTs to get ahead of the game and make your brand stand out, we are here to share some of the best examples we’ve observed and how to avoid making common mistakes before diving into this exciting space.
First, the real question is why?
The number one mistake we see brands make is jumping into NFTs without knowing the purpose of why. What is the true value-add of the NFT for your brand, and why does this matter to your audience?
As with any business decision, there needs to be a long-term vision in mind. Consider how the NFT ties in with your brand’s story and values – and use NFTs as a tool, not a commodity, for communicating your brand’s message. Understand how NFTs can work for you, not the other way around.
Always do it with purpose and with your audience in mind. Have your brand’s story and values lead your decisions on the medium, partnerships, and platforms you choose to release your NFT with.
Remember, NFT is not just Art.
NFT (non-fungible token) is simply a record of something that cannot be exchanged for another. In other words, it cannot be duplicated, and there can only ever be one. A non-fungible token is a digital asset that can only be obtained after purchasing, and its credibility and traceability are supported by blockchain technology.
Although Art is one of the most popular NFT mediums, NFT is not limited to Art.
This means brands can experiment and get creative! An NFT can be a song, a recipe, or a 3D printing blueprint. As long as it can be digitally created, it can be made into an NFT.
Now let’s talk about how brands can use NFTs to drive growth and hype.
Exclusive Access or Offers
While the luxury sector has been one of the first to leverage NFTs to create exclusivity and invitations to events in the Metaverse, more innovative ideas emerge as other industries dip their feet in.
Kings of Leon is the first band to release an album as an NFT, which unlocks special perks like limited-edition vinyl and lifetime front-row seats to future concerts. Not only is this a way to reward loyal fans, but it also re-establishes the scarcity of recorded music. While nowadays, music streaming is accessible to anyone who has internet, only those with an NFT can access this exclusive content.
— Kings Of Leon (@KingsOfLeon) March 15, 2021
In the world of make-up, Clinique was the first Estée Lauder brand to issue an NFT. They built a marketing campaign around 3 NFTs that capture the spirit of their most iconic products together. Called “Meta Optimist”, the NFT is a conceptual “molecule” that changes colours based on two of its most popular products that sporadically go viral on social media. To win one of the 3 NFTs, you enter the competition by signing up for their Smart Rewards program and sharing stories of optimism on social media with their dedicated hashtags. The 3 winners receive one of the 3 NFTs and free products once a year over the next decade.
“This look’s inspiration came directly from Clinique’s All About Shadow Quad palette in Pink Chocolate. To add a bit of drama & a fantastical element, I went with a dark vampy look,” says Tess Daly, one of three incredible MUA collaborating to create a diverse #MetaverseLikeUs. pic.twitter.com/j6MhWh4aUT
— Clinique (@Clinique) June 9, 2022
Revival of traditional loyalty schemes
NFTs are a great way of modernising brand loyalty. It’s a chance for brands to develop new, distinctive experiences for rewards programs without being constrained by conventional formats that often have expiration dates or cannot be transferred or resold.
Since NFTs can be resold on secondary NFT marketplaces like OpenSea, it creates even more value for the owner and continues to drive hype for these limited-edition collectables.
Clinique was among the first to seize this chance. With its extensive list of tiered advantages and substantial welcome discount, Clinique Smart Rewards already has much going for it, but the firm elevated the experience with an NFT raffle.
The unique trackability of Blockchain
In the not-for-profit sector, organisations can benefit greatly from NFTs for tracking and measuring impact. New platforms such as DoinGud use NFTs as a force for social good. A percentage of sales go to a social cause of the creator’s choice, which buyers can trace and share on their profiles as social proof.
Linking to the Metaverse
Of course, we can’t talk about NFTs without mentioning the Metaverse. Some major corporations have created NFT-powered metaverse experiences, such as Gucci Town and Nikeland, to promote their businesses.
Gucci Vault debuts a gaming and retro-inspired metaverse realm in The Sandbox. Gucci has introduced an experimental area for NFTs, vintage goods, and up-and-coming innovators in The Sandbox.
So as you can see… there are SO many ways to create NFTs for your brand. Due to its scarcity, it acts like a membership that can give customers exclusive access to more content, privileges and deals. And also reward the most active users with more limited edition NFTs.
But just to come back to our very first point – why? Always come back to this question, and then how? How can it benefit your brand and your audience? And how does it fit into your brand’s story?
NFT as one part of a holistic customer experience
Branding is a holistic experience that cannot be defined with just one channel and campaign. And NFTs are just one of the tools we can use to build brand awareness and boost engagement and sales.
Rather than thinking of the NFT in a silo, consider the customer experience built around the NFT as well. Use it as a tool to build community, connection and loyalty.
How do we create cohesive digital touchpoints to ensure brand recognition and consistent online and offline messaging?
Start by mapping the moments of connection with your audience to explore where an NFT can add value to the brand experience. Look at your social media strategy, in-store shopping experience, unboxing experience, and brand community experience. Any moment where contact is made is an opportunity.
When used correctly, NFT can be a tool to unlock a brand’s new special features and experiences.
Before jumping in, we encourage you to define how this new exciting tool can add value to your brand experience. One that aligns with your brand’s story, values, and overall customer experience to truly delight and create memorable and unique experiences for your customers that make sense to your brand.
💡Discover our proven NFT marketing strategies inspired by top NFTs collections that lead the way through innovative approaches.
- The possibilities of NFT outcomes are endless – but always come back to the question of why. What is the purpose of the NFT? How does it add value to both the brand and the audience?
- Avoid seeing the NFT as a commodity and rather a tool. Understand how the NFT fits into the brand story and holistic customer experience.
- Get creative using NFTs to drive loyalty, grow engagement, create unique experiences and help your brand stand out.