From Hype to ROI: Building a Winning Brand Strategy With NFTs
More and more consumer lifestyle brands are turning to NFTs to forge deeper connections with their customers and maximize ROI through the new revenue streams they provide.
Consumer lifestyle brands are leveraging NFT marketplaces to:
- Generate buzz using unique digital products, experiences or rewards.
- Build brand loyalty by creating a stronger sense of ownership and belonging
- Leverage marketplace data to enable hyper-personalized experiences
- Unlock new revenue streams through the ability to monetize digital assets directly
Why are Consumer Brands Using NFTs to Build Brand Loyalty?
In order to understand why NFTs are so useful to brands in building customer loyalty and engagement, we first have to understand what exactly NFTs are and how they can be used.
NFTs can be used to represent anything from virtual and physical items, experiences or even exclusive access.
They have a unique set of characteristics:
- Unique & authentic: NFTs are one-of-a-kind digital assets. They each have their own unique code which is stored on a blockchain, meaning it’s impossible to replicate or forge an NFT
- Indivisible: When you own an NFT, you possess the entire asset represented by that token, and you can’t break it into smaller fractions. This is important when dealing with assets that should retain their full value, like limited edition items.
- Transferable: NFTs are designed to be easily transferable from one owner to another. This transfer is recorded on the blockchain, meaning you can always see who owns your NFTs, even when they have been resold – crucial when using NFTs to represent things like event invites.
- Capable of proving their scarcity: The number of NFTs in any given collection is always transparent, which is crucial for collectors and investors, as it provides a verifiable way to confirm the scarcity of an NFT. This proof of scarcity is a key factor in determining the value of many NFTs, as it contributes to their desirability and uniqueness.
The traits make NFTs a hot commodity, with brands across various industries including sports, music, gaming and loyalty programs embracing NFT marketplaces to engage their customers.
Delivering More Personalized Experiences with Web3
Just like any website, marketplaces can track browsing behavior and social interactions.
But unlike Web2 marketing strategies, a Web3 experience gives you far deeper insights because of the use of wallets. Just like you use a physical wallet to store your cash and cards, a Web3 wallet securely stores your digital assets, like NFTs.
Every transaction a user makes generates transaction history around data points like timestamps, NFT times and prices – giving you valuable insight into user preferences, investment strategies and risk tolerance, improving your ability to more effectively target and personalize.
By leveraging these data insights, your NFT ecosystem allows you to create more personalized, engaging, and ultimately rewarding experiences for your customers, while differentiating your brand from the competition.
Be sure you're working with the right partner to build your NFT marketplace with robust security and compliant data privacy measures.
Engaging Your Customers with NFTs
Now that we've covered the benefits of NFT marketplaces, products and experiences, it’s time to answer the million-dollar question: how exactly can you leverage this technology to truly engage and excite your customers?
Some of the biggest consumer lifestyle brands across sectors from luxury fashion to food and beverage have already successfully integrated NFTs into their marketing strategies, providing useful insights into what really works.
Gamification
Design interactive experiences, like loyalty programs with exclusive NFT rewards, scavenger hunts or access to virtual worlds, seamlessly integrating your brand narrative to create an immersive and engaging journey.
Louis Vuitton launched an app, aptly called Louis The Game, to incentivize players to learn its history and rewards players with a chance to win NFTs. While exploring the whimsical surroundings, players could collect 30 NFTs (ten of which were designed by pioneering Web3 artist Beeple). In addition, the game also surprised players with digital candles that revealed 300 trivia postcards about Louis Vuitton.
Storytelling
Craft compelling narratives around your brand and products using NFTs. Consider limited-edition collections with unique stories or collaborative storytelling projects with your community.
Campbell Soup Company partnered with artist Sophia Chang to approach their first NFT collection using visual storytelling to invoke a sense of comfort, goodness and Americana.
Personalization
Create exclusive communities, personalized rewards for NFT holders, or tailor experiences for individual customers, like exclusive content or discounts based on purchase history or even personalized NFT avatars.
Zara introduced its fashion capsule collection, Fairy Magic Idols, which combines physical and digital aspects. The digital collection features unique items such as a pair of sandals with socks and oversized lace, a set of fantasy wings, and a pair of unique sunglasses. The collection is designed exclusively for Zepeto, a South Korean mobile chat app where users create and interact as 3D avatars in different worlds.
Community Building
Engage your customers by empowering them to participate in the brand's journey. Build strong communities around your brand by establishing groups with special privileges, exclusive access or co-creation opportunities.
Gap launched Gap Logo Remix asking artists to redesign their logo, where the winning designs will be turned into NFTs and IRL physical hoodies.
Bringing your NFT Strategy to Life
Implementing your NFT strategy can’t be done in a silo – it has to fit seamlessly with your broader marketing and user experience strategy, and NFTs should function as an extension of your brand.
While NFTs offer exciting opportunities for ownership and monetization, true value lies in creating meaningful experiences and fostering genuine connections with your customers. Use your NFT ecosystem as a springboard for innovation, storytelling and community engagement, and you'll unlock a future where your brand not only sells products, but builds lasting relationships and cultivates passionate advocates.
Aventus is the trusted partner for industry leaders looking to leverage Web3 technology to accelerate their growth. Founded in 2020, Aventus has partnered with some of the largest commercial and consumer companies, delivering asset-tokenization strategies solutions that engage communities and unlock new opportunities for growth.
If you're ready to explore immersive digital experiences that help your brand thrive, let's connect at aventus.io/contact.
