The role of NFT in brand experience

‍

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 that was 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.

This episode is produced together with Digital Business Lab, a digital marketing agency based in Hong Kong that specialises in social media strategy, data analytics, influencer marketing.

Recently, we’ve been talking about the good and the bad of the cyptocrash, and thought we’d take this chance to share some views on a brand experience perspective.

For some, the crash might signal the end of a trend, but we’ve certainly come across some business owners who see the crash as more than just a trend, and 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 wrecking. Where do you even start when the final product could literally be anything in the digital space?

If you’re confused about how to use NFTs to get ahead of the game and make your brand stand out, we’re here to share some of the best examples we’ve seen and how you can 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 of it. A non-fungible token is a digital asset that can only be obtained after purchasing, and its credibility and traceability is 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 even be a song, a recipe, 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 are emerging as other industries dip their feet in as well.

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, it re-establishes scarcity for recorded music. While nowadays, music streaming is accessible to anyone who has internet, only those with an NFT can access this exclusive content. (https://www.rollingstone.com/pro/news/kings-of-leon-when-you-see-yourself-album-nft-crypto-1135192/)

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 together, capture the spirit of their most iconic products. 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 to their Smart Rewards program and share stories of optimism on social media with their dedicated hashtags. The 3 winners not only receive one of the 3 NFTs, but receive free products once a year over the next decade.

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.

NFTs can be resold on secondary NFT marketplaces like OpenSea, creating even more value for the owner, and continuing to drive hype for these limited edition collectibles.

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. (https://doingud.com/)

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 Vault Land and Nikeland to promote their businesses and create a fun experience for their users.

Nikeland is a "decentralized virtual world sandbox building game that allows NFT creation and trade as well as Play To Earn,". In the Nikeland universe, anyone can own virtual land, design and make different structures and virtual goods, and use NFTs to conduct virtual goods auctions and exchanges.

Gucci Vault Land is centred around a “play-to-know” narrative — a riff on the increasingly-popular “play-to-earn” format, wherein users complete activities to earn blockchain-based tokens or rewards. Visitors will be invited to complete gamified tasks that educate on its “core pillars”, such as restoring vintage handbags in the Vault Vintage Lab. Through these gamified steps, the brand aims to educate the Web3 community on Gucci’s heritage while giving out rewards.

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 most active users with more limited edition NFTs.

But just to come back to our very first point of – 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 many 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 that’s 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 messaging both online and offline?

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 new special features and experiences of a brand.

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.

Summary

• 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 by using NFTs to drive loyalty, grow engagement, create unique experiences and help your brand stand out
• 
  

If this episode has given you some new perspective on NFTs, do give us a shout! Reach out to us via Instagram on @prismcreative.co or @digitalbusinesslab.

‍