We can learn a lot from branded Utility NFTs collections that offer valuable insights and lessons to expand knowledge. NFTs have quickly gained traction, offering a groundbreaking solution to the challenges of ownership and authenticity in our increasingly digital world.
As NFTs continue to capture the imagination of creators, collectors, and enthusiasts alike, a new wave of innovation has emerged â the advent of utility-driven NFTs.
What are Utility NFTs?
Utility NFTs represent the next frontier in the evolution of this transformative technology. They encompass the essence of traditional NFTs, but with a captivating twist. While conventional NFTs primarily focus on rarity and provenance, utility NFTs introduce an array of practical benefits and captivating perks that enhance their value proposition. Beyond the ownership of a unique digital item, utility-driven NFTs grant their holders access to exclusive experiences, rewards, and interactions, revolutionizing the way we engage with digital assets.
The principle of âutilityâ goes beyond simply owning a digital asset on the internet. It offers instant value and practical application to the asset itself. The utility of Non-Fungible Tokens refers to virtual assets that provide privileges, benefits, rewards to their owners that are not available elsewhere neither can be copied. Essentially, the NFT utility bestows upon the owner a right to extract a service or advantage from the asset.
Many of the most popular utility NFTs have developed organically. For instance, Keep It Real Meals by Burger King was designed to offer special rewards to users who scanned QR codes, such as the chance to win surprises like a year of free Whoppers. This is just one example of how NFT utility can be used to add value and engagement to a product or experience.
Token-gating, which involves locking products, experiences, content, and communities behind an NFT, is a strategy brands can harness while building engaged communities. The NFT utility offers a unique opportunity to explore the potential of digital ownership beyond the traditional realm of collectibles. By leveraging utility NFTs, brands are able to add value to their work and create a sense of exclusivity and scarcity, driving engagement and loyalty among their fans.
What types of Utility for Non-Fungible Tokens?
An NFT without utility is like a laptop without a battery, it is incomplete. Same with a computer with the wrong battery. However, attached with the right utility, this token can become a real-world treasure, unlocking all sorts of special features going from physical goods to other type of content.
Utilities should be taken as a key to the NFT world. They are what makes an NFT âusefulâ. It is not just a nice-to-have feature, but a must-have necessity for the future of NFT technology.
Brands that harness the power of utilities are the smartest, serving up the perfect blend of value, loyalty, and engage ment. Their communities can build something truly great, enjoying assets worth their weight. Brands should not settle for a bland NFT. They have to add some utility and make it an awesome technology for users.
Read more:Â Soulbound Tokens to empower Brandsâ Digital Experiences
5 best branded Utility NFTs collections to learn from
Let’s dive into the world of branded utility NFTs to explore five exceptional collections that serve as shining examples of this burgeoning trend. Each collection showcases how brands have leveraged utility-driven concepts to captivate audiences and provide unique experiences to NFT owners. By delving into these innovative creations, we unravel the secrets behind their success and uncover valuable insights that inspire us to explore new frontiers in the realm of utility NFTs.
#1 Loyalty programs: Starbucks Odyssey
Starbucks, the world’s leading coffeehouse chain, is known for its innovative marketing campaigns. In late 2022, the company launched Starbucks Odyssey, a new NFT loyalty program that rewards customers with digital collectibles and immersive experiences.
Odyssey Journeys are a series of interactive activities that allow participants to earn NFTs (known as Journey Stamps). These stamps can then be exchanged for a variety of benefits, such as exclusive merchandise, discounts, and even real-world experiences. The NFT loyalty program is the first of its kind for a coffee chain, and it is a way for Starbucks to reward its devoted customers with utility and excitement. Gamification and interactive elements promise to keep members entertained while providing rewards that are only available through Odyssey.
Interestingly, users do not need a digital wallet or cryptocurrency to participate in the activation. Credit cards are accepted for buying and selling digital collectibles. Odyssey is being hosted on the Polygon blockchain, which is a popular Ethereum scaling solution. This means that the NFTs are secure and can be easily traded.
Starbucks Odyssey is a unique and innovative way for the company to engage with its customers. It is a way to reward loyalty, provide entertainment, and explore the potential of Web3 technology. Perfect example of best branded utility NFTs collections!
#2 Tickets & passes for real-world events: Maison Hennessy
The collaboration between Maison Hennessy and Friends With Benefits DAO gave rise to Café 11. This cultural social club seamlessly blends a decentralized autonomous organization with a luxurious experience. To become a member, individuals must acquire an NFT, unlocking a world of exclusive cultural events hosted in exceptional locations. Café 11 represents the epitome of luxury and innovation, as Maison Hennessy and Friends With Benefits DAO join forces to redefine the concept of membership and elevate cultural experiences.
#3 Exclusive high-end experiences : Le Bristol Paris as branded utility NFTs collections
Talking about experiences, Le Bristol NFT activation speaks volumes. This Parisian Palace has launched L’H3ritage, an NFT activation offering 11 unique experiences never seen before at the Palace. These Utility NFTs redefine the guest journey, granting access to exclusive perks such as a private rooftop pool, Le Bristol events, secret cocktails, signature dishes by a renowned Chef, personalized merchandising, and future collaborations. Behind the scenes, these NFT holders will immerse themselves in the heart of Le Bristol, and join the digital native Web3 community in shaping the future of luxury hospitality.
#4 NFT to empower communities and creators
The .Swoosh platform, launched in November 2022, serves as Nike’s digital hub in the Web3 space, enabling customer co-creation. To access the platform, users need a .Swoosh ID and their passport to the .Swoosh experience. Obtaining the ID requires active participation in the .Swoosh ecosystem and a special code from the team. Currently, over 365,564 .Swoosh IDs have been minted. In April 2023, the .Swoosh team airdropped 106,453 free OF1 posters to random .Swoosh ID holders, serving as a ticket to the launch of Our Force 1 Boxes. This resulted in a 15% conversion rate, indicating the proportion of users who transitioned from a free service (holding a.Swoosh ID) to a paid one (minting an OF1 box). (Dune.com).
#5 NFTs as Digital Twins: Bacardi
In the category best branded Utility NFTs collections, we nominate Bacardi Rum. It is launching global marketing activation under its “Do What Moves You” brand platform. Starting with a New York pop-up event in partnership with Stadium Goods, attendees can claim a Dancing Shoes NFT and trade it for physical shoes. Bacardi’s custom Snapchat AR lens and music festival appearances add to the excitement for October 2023, with the campaign concluding at an Amsterdam festival. Attendees will receive a customizable NFT that can be turned into customized sneakers. Bacardi is also releasing a custom lens on Snapchat for consumers to enjoy at home.
The rise of utility-driven Non-Fungible Tokens (NFTs) has brought about a new era of innovation and engagement in the world of digital assets.
While traditional NFTs focus on rarity and provenance, utility NFTs offer practical benefits and captivating perks that enhance their value proposition. If done right, these utility NFTs grant holders access to exclusive experiences, rewards, and interactions, revolutionizing the way we engage with digital assets.
Utility is the key to unlocking the true potential of NFTs. It adds instant value and practical application to the assets, going beyond mere ownership in the digital realm. Brands have recognized the power of utility NFTs and have embraced them to add value, exclusivity, and scarcity to their offerings. By token-gating products, experiences, content, and communities, brands can create engaged communities and foster loyalty among their fans.
