3 Smart Ways to Use NFTs to Grow Your Business
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Non-fungible tokens (NFTs) entered the zeitgeist last year with trading volume of $17 billion last year. NFTs allow one to demonstrate ownership of a unique digital resource. Companies spanning various sectors such as entertainment, fashion and sports have started NFTs. Recently, Starbucks announced plans to issue NFTs as part of its loyalty program later this year. Some other prominent companies that have issued their own NFTs include Nike, Adidas, Hasbro, Burger King, Taco Bell, and Louis Vuitton. Here are 3 different ways you can use NFTs to grow your business
Launches clubs with NFT membership passes
Your business can launch exclusive membership clubs for super fans and use NFTs to gain access. To encourage membership, you can offer discounts and exclusive access to certain goods or services. Your firm benefits from the initial minting revenue and royalties from the secondary sale of the NFTs. The NFTs will also help your marketing efforts as members are more able to showcase their membership on social media platforms.
Related: A modern marketer’s guide to NFT adoption and branding
Using NFTs as proof of membership also benefits members. Members are freed from the burden of remembering their passwords or carrying physical cards; instead, they can simply demonstrate membership through NFT in their digital wallet. In addition, owning an NFT gives members a sense of ownership and increases their involvement in society.
While NFTs are digital assets, analog businesses can also use this strategy. In 2021, Gary Vaynerchuk along with David Rodolitz, Josh Capon and Conor Hanlon launched the Flyfish Club, a private NFT restaurant for members only. Flyfish Club NFT owners get unlimited access to the New York City-based dining and other social experiences.
Sell NFT-based tickets
Your business can add tickets to events such as live performances, conferences and sporting events on the blockchain and sell them as NFTs. Using NFT-based tickets helps businesses reduce ticket counterfeiting and fraud. The verifiable authenticity of tickets also supports a secondary market for tickets. Research shows that the resale ability of tickets encourages attendees to buy in advance; this means greater income for event organisers.
Billionaire Mark Cuban shared that the Dallas Mavericks are exploring turning their tickets into NFTs. He explained that NFT-based tickets will allow consumers to resell tickets while paying royalties.
Related: Make your brand a household name using the power of NFTs
Ticketmaster, using Dapper Labs’ Flow blockchain, has already started issuing tickets as NFTs for select events, which will act as collectibles but also as a shareable record of attendance. In the pilot phase, the ticketing giant created over five million NFTs, over a period of six months, some of which were automatically issued to attendees of specific events.
Create loyalty programs
Loyalty programs that are offered to customers based on purchase history are popular among businesses because they increase customer engagement and retention. Businesses can use NFTs as a way to track past purchases and reward customers. Unlike traditional loyalty programs, NFT-focused loyalty programs allow customers to better showcase their connections – with the brand better; this in turn helps to promote the business.
Customers will benefit from NFT-backed loyalty programs because they are able to transfer or purchase them from others. These functions are usually not available with traditional loyalty programs where the data resides exclusively in the company’s database.
Burger King launched Royal Perks, an NFT-backed loyalty program. By scanning a QR code on each meal box, customers could receive one NFT game chip. After receiving 3 NFT game chips, customers were programmed to be awarded a reward such as free Whooper sandwiches for a year, a conversation with celebrity artists, or a digital collectible NFT.
Related: Pharrell Williams, Contemporary Artist Nina Chanel Abney and Brand Builder Shaun Neff Announce Launch of Game-Changing NFT Platform
Starbucks has also entered the NFT space with Starbucks Odyssey, an extension of the Starbucks Rewards program. Now it not only connects members to the business, but to each other and even employees – offering a chance to take part in a range of activities and challenges centered around the brand and all things coffee. Participants are rewarded with digital non-collectible “travel stamps” (NFT). It is also possible to buy stamps in limited editions through a built-in marketplace. The stamps can be sold, traded or exchanged for premium benefits such as unique merchandise and invitations to exclusive events and tours.
Adopt NFTs in your business
Most businesses do not need to build their own NFTs from scratch. Instead, look for plug-and-play options that allow them to create NFTs without technical expertise. These solutions will suit most businesses.
The possibilities with NFTs are endless and present a range of new opportunities for businesses, small, new or established. Club memberships, ticket sales and marketing are just some of the ways you can use to grow your business. With advances in technology, more potential applications will emerge.
It’s always a good idea to pay attention to news and stories from the NFT space to see what’s new and how others are using the technology in their business.
