Brand engagement has also been affected by web3 and the hype of NFTs. With this new way of advertising, artists have generated millions by selling their works on NFT generating an avalanche of creativity, ideas and brands that add to the trend.
The love for NFTs is not only in the role of artists, large financial companies and banks as VISA has publicly shown its support in this regard. In the words of Cuy Sheffield, Head of Crypto at Visa: “We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce. To help our clients and partners participate, we need a firsthand understanding of the infrastructure requirements for a global brand to purchase, store, and leverage an NFT.”
In this article we will analyze what NFTs are, how they have been so successful with exemplary cases and how they can help brands grow.
What are NFTs?
NTFs are non-fungible tokens that exist on blockchain chains and prove the authenticity and ownership of that unique item. Although its exposure to the world exploded by being used in art, there are different areas where NFTs can be used such as music, videos, documents, certificates, contracts and even physical objects.
NFTs are immutable in ownership, so their ownership passes from user to user and there are no replicas. Each asset has unique information guaranteed by blockchain technology, so it cannot be copied or falsified. As a brand owner, one must take advantage of the hype of the moment to grow the business against competitors, creating attractive proposals for users while generating brand loyalty.
How can NFTs be used to bring brands closer together?
Promotions are one of the easiest ways to use these types of elements. Customers can be offered special promotions and vouchers to keep them loyal to the brand. While classic promo codes are stealable and hackable, deal NFTs can generate QRs on the blockchain for unique and exclusive discounts that cannot be tampered with.
Many brands have a customer loyalty program system, but they can be replaced by NFTs. An NFT loyalty card can be valued for its uniqueness and generate exclusive discounts or rewards for that member, generating the idea of exclusivity.
Tickets to events
Those loyalty cards can also be transposed into tickets. These tickets with NFTs can include exclusive and unique features such as VIP seats, Meet and Greet or backstage access. In addition to these features, that entry can be a unique collection asset.
Companies can use artists and celebrities to generate fundraising campaigns via collections of NFTs. This incentivizes donors to earn an exclusive item while helping a good cause, supporting the artist and changing the world for the better.
In the world the process of creating and patenting something is slow and expensive. This could be solved with an NFT that proves and validates the rights of a person or company on an idea, product or invention.
How to start?
If NFTs sound interesting to you and your brand can take advantage of them, we have some basic steps on how to get started.
The first thing is to define the commercial objectives, what do we hope to get out of the NFTs? Once that is defined, you have to decide what type of NTF to create. It can be a promotional code, a ticket, a loyalty program, an art set, etc.
Then you have to choose the blockchain that will support the created NFT. There are different platforms such as Polkadot or Binance Smart Chain. Some points to consider when choosing are the transaction fees and the type of crypto they use.
Subsequently, depending on which blockchain was chosen, it is necessary to create a digital wallet that is compatible. If we choose one that uses Etherium, it is necessary to use a wallet such as MetaMask.
The initial costs can be paid by crypto, so it is recommended to have some in your wallet to start the project thanks to the profit from those sales.
Finally we will choose the marketplace to upload and sell the created NFTs. This will depend on your niche and business goals, but there are plenty of platforms available.