An NFT category is a type of Non-Fungible Token that is used to categorize NFTs in a particular way. NFT categories are usually used to identify the purpose and types of NFTs, such as artwork, gaming, collectibles, and so on. Unlike traditional assets, NFTs are not limited to a set of uses. They come with a variety of advantages which makes them more appealing to users. A digital assets collection for instance can help boost a brand’s value, provided that it’s done right. However, the real challenge is figuring out how to do it. Brands want to stay ahead of the technologies available to them, but they cannot forsake their marketing objectives.
What does the NFT category have to do with a brand’s marketing objectives?
Making a bond between an NFT category with a brand’s marketing goals can be explained through the spectrum of a brand strategy definition. A brand strategy is a set of action, a long-term plan for the development of a successful brand to achieve specific goals. It outlines the purpose of the brand, its characteristics, values, as well as strategies for developing and maintaining a unique brand identity across all marketing channels. The strategy also includes developing a messaging that resonates with the target audience and creating a consistent look and feel across all communication channels.
The real purpose of a brand strategy is to create a brand that stays in the mind of the consumer. To do so, this brand strategy should meet with the customer needs and perspectives: What perspectives do my customers have of my brand? With a comprehensive brand strategy, you can establish what you want consumers to know about your business and how you can influence them to see your brand in that way. Brands can entice their prospective customers to invest in their services or products by addressing directly their needs or by emphasizing the brand’s values, story, or core message, which they may identify with.
5 global brand marketing goals for an NFT strategy
Having a strategy means having a goal. Before brands build their strategy, they must first determine their firm’s objective. What is it to achieve? Is the trafic on the website, generating more leads or more clients, for example. Setting goals provides direction, vision, and clarity. Whether it be a business or a commercial enterprise, goals lead to success. Regardless of whether it’s commercial or business, a brand succeeds by fulfilling its objectives. Inspired by HubSpot blog, we have determined 5 prior marketing goals to achieve for an NFT strategy:
- Increase brand awareness
- Acquire new customers
- Increase customer value
- Boost brand engagement
- Increase revenue
Talking about different marketing goals must not obscure highlighting the main topic being the NFT category. NFTs have unique features which are not limited to the same uses. Because of these unique features. There is a little reminder of the most suitable NFT categories for brands, each with a specific function: Collectibles, Artworks, Utility tokens, Virtual Real Estate NFT, Gaming Tokens, Virtual Fashion. Each of this NFT type fits a precise marketing goal. This is why it is important to put in place conducts in choosing the best NFT category for ensuring the brand’s message and business objectives.
3 best practices to adapt an NFT category to a brand’s marketing objectives
Matching an NFT category to a brand’s marketing objectives involve creating NFTs that reflects the brand’s values and identity. It as well revolves around understanding the NFT landscape and researching the target audience to determine the best NFT strategy. Additionally, it is important to create an experience with the potential to stand out from the competition. The best practices to find out the best matching NFT type for a marketing strategy cannot be limited to a figure. Nonetheless, some major tips are always helpful:
Find out what your customers like about your brand
Finding out what your customers like about your brand is a process of gathering feedback from customers to identify what they appreciate or value most about your products or services. This feedback can be collected through surveys, focus groups, interviews, or other customer feedback methods. The information gathered can then be used to inform marketing decisions, in this case the NFT category which can work the best with your customer.
Another way of finding the best suit of NFT is to rely on brand archetypes. They allow for a better analysis of your brand image and a much more adapted response to consumers’ needs. As an example, a brand which strong trait is its trustworthiness, it will be interesting to them to empower their customers.
Increase customer value x Utility Tokens
For a brand willing to put users on a pedestal and increase customer value, using Utility Tokens will be a smart move. Utility tokens help offering services to their holders and can unlock real-life benefits. Levi’s® brand for example used Utility tokens for its new 501® Original made from recyclable and organic materials. The Levi’s 501® NFT provides its users with a lifetime warranty thanks to NFT. The brand used a contest to offer its consumers 10 units of this series. Those who own these NFTs will be able to have their jeans repaired for life at the Levi’s® Store. As much as this activation ticks the goal of increasing the customer value, it also allows Levi’s® to put forward its brand quality of brand thus the longevity, increasing as a result its brand awareness.
Set your prior marketing goal
Setting a prior marketing goal is the process of determining what objectives need to be achieved in order to be successful in a marketing campaign. It involves thinking through the desired outcome of the campaign and setting measurable goals that can be used to track progress. These goals should be specific, attainable, and time-bound.
Without having defined a prior marketing goal, it is almost impossible to generate results. An objective illustrates the final destination, and things put in place are meant to serve this final goal. As an NFT is a tool in marketing campaigns, it is set to help reaching this prior marketing goal. The prior goal will determine the course of action for the NFT.
Brand engagement x Virtual Real Estate NFT or Gaming Tokens
Depending on your brand and your consumers, the use of the NFT type may however vary. Typically, for a brand which prior goal is to boost brand engagement and which audience is young, betting on Virtual Real Estate NFT or Gaming tokens would be the right move. Virtual Real Estate NFTs provide brands with the possibility of customizing a virtual space as the brand sees fit. This way, customers can enjoy walking around virtual Mall, or just a universe done with the tones of the brands.
H&M for instance built a virtual showroom for their customers. Visitors were able to move around freely and talk to other users, both verbally and via chat. It provided a way for users to explore the brand offline, which raised the brand engagement. Gucci brand or even Dior Beauty have done the same with creating virtual spaces in metaverses for their users to enjoy. When it comes to Gaming tokens to generate engagement, Nike has succeeded to the point of being the brand with the most NFT revenue. This Footwear brand has bet on a lot of digital assets activations, one in the game Fortnite for the launch of Nike Air Jordans. It was about winning mini-challenges to gain the capacity to customize the sneakers purchased in-game.
Determine the value your consumers get from your NFT experience
An NFT brand project must provide a long-term vision to both the brand and its users. Users will look for the value of the digital good to be tangible. Brand events, physical gifts, voting power or passive income from owning a digital asset can provide a tangible value. The value has not necessarily to be material. It can also be intangible, through an impactful and strong message. NFTs can also be purchased for their social purpose in addition to their intangible value. Free NFTs or enhanced features on a platform provide an intangible value. Due to the Bored Ape Yacht Club giving away some ApeCoin tokens, some token holders became millionaires for instance.
Increase brand awareness x Artworks
A brand which objective is to increase its brand awareness may find Artworks really interesting. This NFT type is great for empowering a brand message. This worked out really well with Nivea brand through its “Value of Touch” NFT. Its message was to restore the real value and the power of touch and was co-created with an artist having suffered from visual impairment in her youth. Therefore, this physical state made her realize how underrated the sense of touch was. This 15,000 free NFT collection was claimed just 48 hours after. Lots of Beauty brands have relied on NFT Art for their brand activations.
For further illustrations of matching the right NFT category with a marketing goal, take a look at this following notice:
- To increase revenue, the suitable NFT category will be Collectibles, Artworks or even Virtual Fashion. Dolce & Gabbana with its « Collezione Genesi » accumulated $5.65 million. However, Its NFT collection mixed Virtual Fashion and Utility tokens through physical items of their NFT and a privileged and exclusive access to Dolce & Gabbana brand events.
- To acquire new customers, turning to Collectibles or even Gaming Tokens should be a good deal. Collectibles have been very popular lately and are still required to activate business opportunities on other level. The luxury brand Louis Vuitton for instance using a storytelling and gamification has turned to collectibles. This brand launched an app game NFT base called Louis The Game. The game featured the story over the 200 years of the brand founder. This game gathering 30 NFT collectibles had for purpose to leave a legacy, so that the brand reach a target not familiar with the brand heritage. Since Louis Vuitton’s core audience is old, the challenge of this NFT activation was to attract a younger audience.
Of course these recommendations are not frozen. Depending on how the marketing objective is to achieve and especially the audience to reach, the NFT categories can be adapted accordingly. The Carrefour brand for instance unveiled an NFT collection carrying the message of the bee protection with the NFees on the metaverse The Sandbox using Collectibles.
Having a look at the continuity of a marketing strategy, Finding the best NFT category is the key. NFTs are a gateway to various possibilities. Each company should use the correct type for their goal and build a successful marketing strategy up front. METAV.RS is the compass for brands willing to make the best crossover between NFT types and goal-based marketing.
To learn more on NFTs and how they activate interoperable features on metaverses, read METAVERSE INTEROPERABILITY- HOW CAN BRANDS LEVERAGE IT
For more, download our white paper ENTERING IN THE WEB 3.0 – A GUIDE FOR LUXURY FASHION IN THE METAVERSE