Will NFTs Become the Next Big Thing for B2B Marketing?
The four things you need to know about using NFTs in digital marketing.
NFTs are non-fungible tokens, digital assets with unique properties. In other words, they cannot be exchanged for an item of the same kind. They are in some ways identical to Bitcoin and Ethereum, but they’re not the same thing. The main difference? Imagine this: you lend a friend a hundred dollars with one bill. A couple of days later, she comes back to you with two fifty-dollar bills. Everyone’s happy, and the debt is paid off, right? That’s right! Because money is interchangeable. Now think of another situation. Your friend asks you to borrow your German Shepherd puppy for a day. The following day, he returns with an utterly different pet — a Lab Retriever. Every dog is unique and can’t be exchanged! The same is with NFTs. Simply put, NFTs certify you as the owner of a specific digital item such as a photo, video, audio, game, collectible, etc. They also enable their creators to receive royalties from every future resale. Since NFT assets are a growing trend right now, brands aren’t missing their chance to take advantage of them.
The value of NFTs for brands
NFTs are super versatile and can be used for pretty much anything. At this point, you might have a hard time imagining how NFTs can be tied to your marketing strategy.Think of it this way: NFTs can be viewed as a way to connect to your customers directly – ownership is a powerful idea and establishes a closer relationship between your customer and your brand.With NFTs, you can:
- Raise brand awareness
- Create extraordinary brand experiences
- Draw interaction to your product and foster customer engagement
NFT technology has already prompted brands to dip their toes into digital collectibles.McDonald’s, Pizza Hut, and Pringles, for instance, were among the first to create campaigns around NFTs, selling digital burgers and pizza art to their customers.Louis Vuitton, one of the first luxury brands operating in the NFT space, has launched a virtual game that has been a runaway success.Will Gen Z embrace digital collectibles and virtual ownership? Of course they will!So, what are some takeaways with regards to NFTs in the context of digital marketing?
1. NFTs create a unique brand experience.
NFTs can benefit any brand looking to build loyalty, engagement, and long-term connection with consumers. NFTs create tailormade value for the specific end-user with the ultimate goal of building life-long relationships.The first step in planning an NFT campaign is to imagine your target audience asking, “What’s in it for me?” The incentives you offer can range in price point; the important part is that the reward makes the buyer feel like a valued member of your brand’s ecosystem!
2. The highest value proposition always wins.
The beauty of NFTs is that they are re-sellable in the future. If the brand equity for your tech product increases in value, the re-sellable value of the NFTs also increases.This is an incredible opportunity for loyal customers to invest in their favourite products; at the same time, they can also sell their NFT on the open market and give new customers the opportunity to experience exclusive rewards.
3. Prioritize value over revenue.
The most important thing to understand about the NFT world is that brands must prioritize an NFT’s value over its revenue. Brands benefit from NFTs through increasing engagement and building customer loyalty – not through direct profits.If an NFT seems like it’s only meant to capitalize, customers will take note, and the whole effort can backfire very quickly. But if your campaign makes it clear that you’re giving more than you’re getting, everyone is satisfied.
4. NFTs are here to stay.
Understanding NFTs isn’t just important for growing business; it’s vital for keeping business. I believe that NFTs will quickly become so pervasive that even smaller companies will need to engineer NFT marketing campaigns for their existing customers.Companies that jump into this space now will gain a competitive advantage by delivering the greatest value.