Using NFTs to Build Brand Loyalty

NFTs or Non Fungible Tokens have emerged as the next must-have collectible. Since the pandemic, more and more attention has been paid to the buying, selling and collecting of virtual goods. Brands can take advantage of this trend as well, through the use of NFTs. 

In the past, people who wanted to show off their brand loyalty might show you some limited-edition run of a particular design, a t-shirt, or some other trinket. These days, it’s all about digital goods. By issuing collectible NFTs, the power shifts to the consumer, who can buy, sell or trade this exclusive item with others who are also invested in the brand. 

The fact is, people want to connect with their favorite brands. They want to show off their fandom, and exclusive NFTs are a great way to do that. 

 

What is an NFT?

A non-fungible token, or a record on a particular brand of cryptocurrency’s blockchain that represents a piece of digital media. Non-fungible means that it’s unique and can’t be replaced by something else. Anything can be turned into an NFT, but they’re most commonly things like art, music and videos. Even memes are becoming NFTs. 

To illustrate how priceless NFTs can be for some people, Jack Dorsey, CEO of twitter, sold his first tweet as a NFT for just over $2.9 million dollars. Major brands, including Coca Cola and Taco Bell are jumping into NFTs too. It’s still very early in the whole scheme of things — but as with many trends that eventually become more and more widespread — those who act first are the ones who eventually come to dominate the market. 

 

Loyalty Rewards and Product Perks

Makeup and skincare brand Clinique is one of a few brands that is looking into leveraging non-fungible tokens as part of their marketing strategy. Rather than selling them, though, they give them away to shoppers who are enrolled in their rewards program. With these giveaways, customers have the chance to win free products for the next 10 years, as well as one of three limited edition NFT artworks. 

In order to be considered for the drawing, people enter to win by sharing optimistic stories on social networks like Twitter, Instagram and Tiktok. This not only helps spread the word about some of the company’s best-selling and most popular products, but also incentivizes people to participate and share what matters most to them. Gradually, those stories of optimism reflect back to Clinique — a win-win for the brand and its consumers.

 

The NFT Brand Bandwagon

Makeup and beauty brands aren’t the only ones dabbling in the world of NFT marketing. Clothing manufacturers are auctioning off limited-edition shoes, jackets and more through NFT networks where users can not only win a physical item, but also a digital version that they can wear in AR or Augmented Reality.  There’s a lot of potential to create and bridge the gap between physical and digital items across a wide range of products, while still making them desirable in both the real world and the virtual realm. 

One of the reasons why they’re so popular is that there’s no set-in-stone requirement for what is or isn’t an NFT. Anything can be an NFT. Your drawings on a napkin. A one-on-one coaching session. Even a GIF of you dancing. If it has value to someone, somewhere, it can become an NFT. 

 

Get Started with NFTs Today

If you’re interested in learning more about NFTs to build your own brand loyalty and are looking for unique and innovative ways to do so, reach out to the experts at Workdom. Right now, NFTs have generated nearly 11 billion in sales just from June to September of 2021. That’s a huge market that’s only going to grow. NFTs have the potential to completely change the game when it comes to building lasting customer loyalty and driving brand recognition and fandom. 

We could very well be standing on the edge of a true game-changer in the world of customer loyalty and branding. Much like the early days of the internet, where we could scarcely imagine a “computer in every home” or even a mobile phone in every hand, we could look back on this moment and hardly believe that someone wouldn’t want to own some NFTs from their favorite brands. Contact us today to learn more! 

 

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Disclaimer: This post is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. This post reflects the current opinions of the authors and is not made on behalf of Workdom or its affiliates and does not necessarily reflect the opinions of Workdom, its affiliates or individuals associated with Workdom. The opinions reflected herein are subject to change without being updated.