4 ways brands can use NFT in marketing
The Web 3.0 movement is pushing to give customers more control through digital ownership.
Brands are adjusting their marketing to keep up by offering non-fungible digital tokens (NFTs) to customers.
NFTs are stored through blockchain technology, which is defined by investopedia.com as a decentralized, distributed ledger that stores the record of ownership of digital assets. Information stored in the blockchain cannot be edited, deleted or changed.
The data is personal to each user through a digital wallet to store payment information and passwords.
“They give ownership and access to customers,” said Brian Fanzo, a digital futurist and host of the daily NFT365 podcast, during the Ragan Communications Social Media Conference held in September in Orlando, Florida.
“No one else has the password,” he added. “It doesn’t exist on any server or website. The wallet is my own and the great thing is that no one can take it away from me. I get to decide what data or information is publicly shared or shared with them from a marketing and advertising point of view.”
Here are some ideas to get your organization involved in NFTs to strengthen your marketing and communications.
NFTs can prove digital identity for ownership
Fanzo says NFTs can provide proof of ownership for passports, driver’s licenses and other personal belongings, allowing customers to carry digital copies on their phone.
In addition, NFTs can answer questions about online piracy by providing individuals and brands with proof of online ownership of products.
Fanzo said NFTs had been used to provide digital proof of authentication to protect against fraudulent products.
NFTs can help businesses track relationships
NFTs offer technology to track how people have interacted with a brand in the past, which could prove valuable to everyone.
“I can say that anyone who buys between now and before Thanksgiving will get a special offer for December for those who hold an NFT,” he said. “No one can post discount codes and customers have the authority to share discounts with others. Companies can also offer replacement NFTs for those who share them.”
Fanzo said this makes it easier for companies to target loyal customers and offer benefits that they can share with others.
How brands reward brand loyalty
Fanzo said brands like Disney can help verify who has visited the park multiple times or seen certain movies to help market their products to those who are interested.
Starbucks currently offers a full NFT program known as the Odyssey Experience. Benefits include in-store tastings and a chance to win trips to their Costa Rica farm.
An NFT sneaker club allows fans to collaborate with brands on new shoe designs, Fanzo said.
How NFTs can help build community?
Fanzo said that Web 3.0 could help answer these questions, and suggested that trade groups could offer NFTs that show other members which ones are nearby.
“The future of business is community,” he said. “But the biggest thing we’re missing in society today – especially online – is a sense of ownership. How do we prove that we are part of an online community?”
Chris Pugh is a staff writer for PR Daily. Follow him on Twitter and LinkedIn. Send story ideas to [email protected].
