NFTs are changing the way projects drive community engagement

Non-fungible tokens (NFTs) are becoming increasingly popular for their ability to represent unique ownership of digital assets. NFTs can create new experiences for local communities and foster a sense of belonging. But how can NFTs foster feelings of community through co-creation, co-ownership, storytelling and customer engagement?

NFTs can be created in collaboration with a community, giving them a sense of co-creation and co-ownership. This approach can help brands build deeper connections with their audiences. By involving customers in the creative process, brands can create a sense of ownership and pride in the final product. This co-creation process can also lead to increased commitment and participation in the community.

Storytelling is another important aspect of creating a community through NFTs. Brands should focus on their audience, rather than themselves, to drive engagement. Storytelling through an NFT collection should be centered around the user, their experiences and their feelings. This approach creates a more relatable and engaging narrative, and increases the likelihood of user participation.

Tokenizing relationships with customers

Brands can tokenize their customer relationship by creating NFTs that offer utility and access to exclusive events. This approach increases engagement and strengthens the bond between the brand and its audience, said Guidione Machava, member of the blockchain team at Shopify, during NFT.Paris 2023.

Brands should not focus on short-term profits from selling NFTs, but on building long-term relationships with their community. For several reasons, it is beneficial for brands to focus on community engagement rather than short-term profit by simply selling an NFT collection.

First, community engagement builds long-term customer relationships, which can result in increased loyalty and brand advocacy.

Second, creating a sense of community around NFTs can lead to increased technology adoption and use. When customers feel part of a larger community, they are more likely to participate in activities and events related to the technology, increasing its overall use and adoption.

Third, creating NFTs that offer utility and access to exclusive events can add value to customers beyond the NFT itself. This value can create a sense of exclusivity and prestige, which can drive demand and increase the value of NFT.