We’re living in the era of endless marketing opportunities. There’s guerrilla marketing, there’s affiliate marketing, email marketing, and so (oh, so) many more ways to try and connect with your customers.
Non-fungible tokens (NFTs) seem to be a new hot commodity as a way to reward your existing customers and reach new audiences.
NFTs used for brands are referred to as corporate NFTs. Check our guide on corporate NFTs here.
Let’s look at how your brand can benefit from NFTs.
Since 2021, NFTs have become a widely recognizable concept and (truth be told) investment opportunity. Last year alone, Google saw more searches related to “NFTs” than ”crypto,” with interest increasing throughout the entire 2021 and peaking by the end of 2021-beginning of 2022.
Bringing new customers is no easy task. And it’s getting harder every day. NFTs represent an opportunity to acquire potential customers who have never heard of your brand or have heard but never used it.
TAG Heuer is one of the examples.
TAG Heuer is a Swiss luxury watches brand. Luxury products like that usually target a specific audience with a certain level of income and spending budget. The company recently released a feature that displays NFTs on their watches.
This update allows NFT owners to showcase their digital collectibles, which means it might attract an audience that a) is not a TAG Heuer watch owner yet, b) and an NFT collector (potential customer base with spending opportunities). Two potential revenue streams over one is an opportunity that seems silly to miss out on in this economy.
Amberfi’s director of marketing and community, Ellyse Amelia Trethric, encourages brands to use the potential new technologies have to offer. “With new technology comes new opportunities. The opportunity to gain new customers through marketing tactics that haven’t been overplayed in the last 30, 40, heck, 50 years is exciting. Those that are at the forefront of innovation, and are also active participants in it, gain experience, knowledge and the rewards that come with running with consumer evolution…rather than pushing against it.”
Ellyse believes that right now is “the time to build, learn and be a part of the technological revolution that will soon be how we all do business, protect assets and gain entrance into the experiences we want in life. Being able to be at the start of customer education and onboarding into the new digital economy is an opportunity and a gift for those that can see it and do actual research on NFTs and Web3 in general.”
Oluwatobi Ajayi, senior marketing manager at Amberfi, notes that physical worlds and digital lives continue to merge.
“Consumers are beginning to crave “phygital” experiences more than ever before, and NFTs are a perfect tool for businesses to develop and curate these experiences. While NFT technology is still at an early stage, its disruptive nature across various industries like fashion, sport, music, supply chain, etc., is quite amazing and further justifies the projections of it becoming a $200 billion industry in a few years.”
Retention and loyalty
Congratulations on new users in the NFT world! It’s a good feeling, isn’t it? But next comes the moment when you realize that getting these customers is only half the battle in your brand’s story. Keeping them engaged and ensuring they use your product is a whole other banana you need to peel.
“On the aspects of customer retention, it needs to be innovative, fun, and engaging. You want people to be excited to see the content you put out, ready for the next part they can take action in. A little bit of fun and joy goes a long way these days, we all know it,” Ellyse shares.
A good example of NFTs being used for engagement is Cadbury Gems. The candy company has launched the Junior NFT campaign – a move intended to renew the customer’s interest in the company’s products. The campaign features children’s artwork turned into NFTs, and a portion of the proceeds from it is donated to Save the Children, a non-profit organization that ensures access to education for children in India.
To participate, customers need to upload photos of their children’s artwork, made with Cadbury Gems, to the official website and wait until (or if) their photo will be turned into an NFT. This initiative kills two birds with one stone – it ensures customers buy Cadbury Gems (to make the artwork) and that they are communicating and engaging with the brand (because who doesn’t want their children to win?).
“I love social good projects mixed with corporate product marketing. It’s a win-win and a great way to bring in new consumers. I am also the co-founder of the NFT Kids Club and really stand beyond bringing the youth into the fold of the blockchain as well and showing what small acts can truly transform into,” Ellyse adds.
A beauty brand Clinique has introduced a very lucrative loyalty program as a part of its NFT marketing program.
Clinique decided to give their customers who signed up for the reward program an opportunity to get free products for 10 years and one of three editions of the “Meta Optimist” NFT collection instead of just selling the non-fungible tokens. The long-term campaign is aimed at increasing loyalty and ensuring new products get marketing exposure.
Oluwatobi believes that NFTs have become a way for brands to create long-term value for their product and services, ultimately making such products/services a lot more attractive to their customers. “This significantly helps improve conversion when it comes to customer acquisition and also retention.”
Check our interviews about marketing, communities, and brands in Web3 with Ellyse and Oluwatobi.