By Vikas Agrawal, co-founder at Infobrandz, an elite team of visual communication experts taking content marketing to the next level.
getty
Despite the recent downturn in the crypto market, non-fungible tokens have emerged to be potent tools to help businesses deliver exceptional value to their customers. Based on the initiatives launched by some of the biggest global brands, it can be definitely established that NFT technology is here to stay.
However, in the current landscape, it is clear that companies need to take further steps to bolster NFT adoption and simplify it for the end consumers. Here are some steps companies can take to bridge the learning gap and provide fundamental value through NFTs.
Integrate NFTs into existing products.
Instead of taking on the challenge of creating an entirely new product range, brands can use NFTs as an extension of their existing productions. This phenomenon is starting to be witnessed in the sports and entertainment industries, where companies are bundling physical products with NFTs to provide broader value to customers.
For example, celebrities are tapping into the market by bundling NFTs together with ticket and merchandise sales for concerts. This integration can be further enhanced on a business level to increase NFT adoption in general consumers.
Brands like Meta and Twitter have embraced the technology and are allowing users to showcase their NFTs on their social media profiles. This trend is only expected to grow in the future as businesses explore new ways to integrate NFT technology into their existing product range.
In today’s digital landscape, customers are more open to embracing new products that simplify their day-to-day affairs. To meet these expectations, businesses can look towards NFTs as an effective business tool.
A recent report by GloComX indicates that over 70% of digital consumers are excited to learn more about NFT technology and how it can improve their experiences in real-life situations. This willingness can be an invaluable tool for businesses to improve their audience engagement and gain a competitive advantage.
Even smaller businesses can take advantage of this paradigm shift and experiment with NFTs that are designed for their customers. Due to the developing nature of NFTs, companies can figure out the best solutions only by experimenting with audience offerings to see what works.
Develop an educative strategy.
Similar to other digital mediums, NFTs are primarily driven by an effective creative strategy. Brands can boost NFT adoption by using them as tools to convey the brand’s story. These tokens can be used as an access gateway to exclusive features accessible only to customers.
The key part of the equation is to focus on educating customers about the broader NFT experience. Most digital consumers don’t have a clear understanding of the steps they need to take to use NFTs. This means that companies need to convey the fundamentals of NFTs and crypto before launching further products. Creative messaging is extremely important to simplify complicated concepts and convey the value proposition.
The educational strategy needs to focus on developing an understanding of the technology using digital means. Social media platforms offer the perfect platform for companies to regularly share insight about the technology and deploy polls that are designed to take customer input.
Currently, a key challenge exists in separating the core NFT technology from the speculative nature of Profile-Picture NFTs (PFPs). This can help customers understand that the technology can be used in different ways beyond the image-trading application that has been highlighted on social media. According to data from Glassnode, the total number of Ethereum addresses holding at least 0.1 ETH has steadily increased. Since 2020, the number of addresses has increased from 2,654,853 to 3,638,204. This reflects an increase of over 50% in just the past two years.
A major part of the equation needs to focus on conveying the fundamental utility of NFTs as well. Customers need to be educated about the prospects of NFTs as powerful tools to conduct real estate and digital asset transactions. Highlighting the practical applications can increase customer trust and speed up adoption.
Add a social cause to NFTs.
NFTs have been used as an effective tool by countries like Ukraine to raise funding for refugees. Similarly, NFTs have been used as a tool to raise funds to empower Afghan women that have been struggling as a result of recent events in the country. Businesses can tap into this prospect of NFTs to improve customer adoption and link this emerging technology with a beneficial social cause. This can encourage customers to take the time to learn about the phenomenon and interact with the technology. Similarly, other ESG initiatives can also be targeted under the NFT umbrella, depending on company creativity and strategy.
Interact with customers.
Loyal customers are at the center of any effective business strategy. Brands need to communicate actively with their customers to understand their requirements and expectations. These conversations can allow businesses to develop NFT products and services based on customer needs. Ongoing customer interaction also serves as an effective tool to improve features and make timely changes.
These interactions can be subsequently rewarded with community-driven products. Platforms like Reddit have recently started awarding NFTs to users as a way of cultivating a unique brand identity. The signature art and scarcity also cultivate excitement and develop brand loyalty.
Here are some ways brands are offering value through NFTs.
• NFT-based loyalty programs
• Exclusive content libraries accessible via NFTs
• Limited edition art pieces
• NFTs as tools to access physical products and spaces
In fact, the technological prospects of NFTs are only limited by brand creativity. Due to the emerging nature of the space, there is significant room for innovators to come forward and figure out new ways to use the technology.
Despite the emerging nature of NFT technology, businesses need to take proactive steps to move toward integration. Educating customers remains a key part of the equation. Businesses need to educate customers about how NFT technology is simplifying operations and creating better experiences. Despite customer willingness to learn more about the technology, there is still a huge gap between the market applications and the potential market.
