While the NFTs fever is in full swing, each brand is questioning this tech subject. The merit of owning a digitally certified asset is indisputable. It must be exploited.
But the real question is how. While brands have a strong interest in getting ahead of the technologies available to them, they must always keep their intrinsic objective in mind.
NFTs – What do they mean for a brand?
The NFT or Non-fungible Token is the possibility for a brand to have its non-interchangeable dematerialized possessions verified and certified with the blockchain mechanism. An NFT is perceived as a digital certificate that will certify each piece of information inherent in a token: its author, signature, date, last transaction, etc. This dataset will create a unique value to the token that will make it non-fungible. The Blockchain mechanism will simply authenticate the non-fungible token, making it almost impossible to falsify.
NFTs will therefore recreate the value of a good on the digital. This is where all of the fruitful and even practical potential of NFTs for brands comes from. But if the enthusiasm created around NFTs is irrefutable, this notion of value must also be there. Thus, for a brand, the creation of an NFT or an NFT collection to bear fruit, must carry a certain value, validated at the social level. Each brand bearing de facto remarkable and disparate identities, must question its own added value before embarking on NFTs.
5 prior questions before getting into NFTs for a brand
In our previous article The 7 ways to boost your brand awareness with NFTs, we mentioned the type of brand with the most interest in joining NFTs wave. Currently, it is a question of deeply examining their leitmotif. While it is clear that not all brands are called upon to adopt NFTs, those most likely to find their way around must go through a deep observation phase. Here are 5 questions a brand should ask before embarking on NFT:
What is my brand strength?
NFTs should be taken as a tool and not as a strategy. A brand will use NFTs to boost the perceived value of its brand image. NFTs will come in support and will not have the role of building the corporate strategy, even less the foundation of the digital strategy. A company that is not aware of its strength or the power of its values will not be able to exploit the potential of NFTs.
In the luxury sector, for example, customers will appreciate obtaining the certificate of an acquired product. An NFT will give evidence that the products of a luxury brand are indeed products having followed a specific design and production scheme. An NFT is not going to be the reason the products being sold are luxury goods. Above all, it will provide evidence that they are.
The question of strength will substantially join that of values. For luxury, the values in this case will be quality, durability, finesse, etc. For others, it will be organic, vegetable, and the examples are plethoric. What it is to to remember is that the smallest aspect can make the difference in an NFT project. A brand with a strong potential in terms of CSR will have to produce an NFT representative of the values it defends.
The choice of blockchain for this reason will be indicative of the project scope. Thus, choosing an energy-intensive blockchain will convey a contradictory image to consumers. It will be necessary to opt for more eco-friendly blockchains (Tezos, Solana, Polkadot, etc). In this way, there will be no gap between an NFT project and the company values. A more artistic brand, on the other hand, with a less committed message, can turn to the usual Ethereum blockchain to produce its NFTs.
What is my brand objective with NFTs?
Launching an NFT project means careful planning beforehand. It is essential to know the expected results prior to the project. Is this a new way to boost brand loyalty? Are we talking about a new source of income? Is this a way to create a digital native product range? Why not consider reaching out to a new community? Each brand before launching must be fixed on its main objective in terms of strategy around NFTs because that is where all the actions will come from.
For an objective focused on a new source of income, it will be interesting for a brand to create collectibles, even artistic tokens. To boost its engagement and retention capacity, a utility token will be much more meaningful. Of course these recommendations are flexible, but starting from a main objective will save the teams from a considerable waste of time (and money).
What is my audience?
As with any strategy, analyzing your target is essential. Brands wanting to get into NFTs are no exception. These data are to be scrutinized with the greatest attention:
- Age group: Boomers are the most likely to not even be aware of NFT technology, so for a brand whose target is mostly in this category, it will be quite difficult to imagine a viable NFT strategy. Millennials and GenZ, on the other hand, are (obviously) the most fond of technology, especially innovation. Capturing them with the right approach will be more within reach.
- Minimum income: It is not relevant to offer overpriced NFTs to an audience with average income. It will be necessary to make sure of the prices to be fixed beforehand for the NFT according to its consumers.
- Digital enthusiast: You have to be reassured that a good part of its users are digital regulars. Are orders usually made online or in physical stores? Are they active or passive users? What are the main conversion levers?
This list is not exhaustive but provides a general analysis grid on the characteristics to be taken into account in its deployment around NFTs.
What NFTs experience do I intend to offer?
NFTs remain a technology that is still difficult to understand. These brands should focus on the experience they deliver around NFTs and not the NFT itself. The experiences are many. It can go from the game, to a simple quest for identification. Thus, a brand will have to consider the question of the experience to offer.
- Gamification, for example, is one of the levers that works best. It is possible to offer a gaming experience, to earn NFTs.
- A brand can also bet on Rarity as an experience, starting from the premise that the NFT as a dematerialized good is automatically unique, and thus create a storytelling around this unique token.
The Nivea brand had taken up this challenge remarkably with its “Value of Touch” NFT. This NFT had the ambition to bring up to date the preciousness of touch, quite simply. The fact is that 88% of people value the sense of life and hearing more than the sense of touch. And this NFT came to prove that touch also counts, as much as the other senses.
- Belonging to a community can also be an experience created by a branded NFT. An NFT collection can offer the experience of bringing together the holders of a collection, giving them a feeling of belonging to a new community. Projects like Bored Ape Yatch Club (BAYC) or many others have accomplished this bet.
However, the range of possibilities in terms of creating an experience around NFTs for a brand is broad and is constantly being renewed. NFT technology opens the way to new uses, new means of capture. The NFT has not completely extricated itself from its test phase. This is the reason why brands still have the possibility of designing experiences that are even more unique than the others.
What value do I bring to my users?
As an extension of the previous question on the experience delivered, the value provided to users will be glimpsed. A brand NFT project must be able to provide a long-term vision, both to the brand and to its users. A user to appreciate a brand NFT project will look to find the value of the digital good, tangible as intangible.
The tangible value can be exclusive access to brand events, a physical gift or even decision-making power over the conduct of a business as with DAOs (Decentralized Autonomous Organizations). There can also be participation in a social cause through the purchase of the NFT.
The intangible value can be the possibility of obtaining other NFTs for free via airdrops or even of unlocking specific functionalities on a platform. It can be items or skins on online gaming or even digital assets in the form of social shares, which give the possibility to the owners of NFTs to earn passive incomes. A great example is that of the Bored Ape Yacht Club which offered their NFTs holders several of their ApeCoin tokens, which made some millionaires.
In the continuity of a marketing strategy, the power of NFTs must be taken into account. NFTs are a gateway to multiple opportunities, provided that each brand asks the right questions beforehand and builds a viable global marketing strategy upstream. METAV.RS is the true guide for brands into NFTs and the Metaverse and can help them build outstanding virtual experiences.