With the growing interest in digital collectibles, it’s no surprise that brands are scrambling to get in on the action with NFT utility. This latter has unlocked a whole new world of possibilities for connecting with users in new ways.
But to truly make an impact, brands need to do more than just jump on the utility bandwagon. They need to build a strong message setting them apart make in a given market or industry. While Non-Fungible Tokens are most commonly associated with the art world, their utility extends far beyond that.
In fact, an NFT utility can pave the way for unparalleled growth and success for your brand. Utilities such as token-gated, NFT digital twins, NFT mint pages or even social & reward tokens are approaches to grow customer engagement and revenue generation.
Read more: 18 Utility ideas for Brands and creators to supercharge their NFTs
What is an NFT Utility?
The principle of “utility” 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.
Unlike physical assets, Non-Fungible Tokens are entirely digital and are therefore immune to loss or duplication. Thanks to the built-in tracking system on the blockchain, originality is ensured, and ownership is guaranteed. With unmatched security and transparency, NFTs have become increasingly popular among those seeking a novel and innovative way to engage with customers.
What can an NFT utility be used for?
From digital collectibles to accessing gaming items and experiences, Utility NFTs are doing very great in the Web3. It is however just the tip of the iceberg. They can transform industries way more than what is imaginable.
Let’s talk about the possibility for end-users to become member of a very select club. They would attend exclusive and special events dedicated to them because they own an NFT ticket that guarantees these privileges and even more. Or what about physical products attached to an authentic and unique NFT? We can go further by talking about earning loyalty rewards which are tradable into currency on a blockchain-powered marketplace. And there is more. An NFT utility is able to give access to voting rights, giving stakeholders a direct say in important decisions or even a share of income.
The possibilities are endless, as we are still unfolding a plethora of NFT practicalities. There is more to except, as innovative use cases emerge. So the future of NFT utility is looking brighter than ever before.
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 “useful”. 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 engagement. 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.
Metaverse Real Estate
A brand want to provide their users with a virtual mansion in the metaverse? NFTs can make it happen. Representing ownership of virtual land and property in video games, an NFT utility will open up a whole new world of digital real estate.
Gaming experiences and items
Gamers through utilities can own and even trade in-game assets. More than that, they make some real-world money while being in it. As further experiences through gaming, Utility NFTs power decentralized economies, where players can earn and spend tokens in a peer-to-peer marketplace. Users can as well make the most of this experience by merely playing and enjoying the game.
Most of us know about "Paris Fashion Week" 💃— Seedphrase Daily (@seedphrasedaily) April 10, 2023
BUT have you attended the "Metaverse Fashion Week"? 💃💃
The MFW was hosted last week in the metaverse by @decentraland, and the numbers are NOT looking good. 👀
MFW 2022 – 108,000 unique visitors 👨👨👧👦
MFW 2023 – 26,000 unique… pic.twitter.com/Z6I2iCwNJ6
Authenticity Verification as an NFT utility
When products are subject of counterfeiting, utilities stand as an emergency door. Whether it’s verifying the authenticity of luxury goods, tickets, or anything in between, Non-fungible tokens create a transparent and immutable record that combats fraud.
Membership and Event Tickets
With NFTs, membership and event access just got a whole lot cooler. Representing exclusivity and scarcity, utility NFTs add an extra layer of excitement to premium events, and VIP club.
Loyalty programs won’t be boring anymore. Utilities provide a new form of loyalty rewards that can be traded and sold on a blockchain-powered marketplace, making it easy for loyal customers to earn from their engagement.
Governance and Voting Rights
Decentralized autonomous organizations or DAOs and other decentralized governance structures just got more exciting with NFTs. Representing ownership or voting rights, Utility NFTs give holders a say in decision-making and governance.
Royalties and Revenue Sharing through an NFT utility
For a brand willing to set up royalties and share revenue for their intellectual property, utilities make it possible. A share of ownership with videos, patents or contents in general, NFTs are a way to monetize work and share the profits with users owning their token.
Philanthropy just got more transparent with Utility NFTs. These digital assets account for charitable contributions, providing a clear record of the users’ giving in a project.
Owning a piece of real estate without having cash is now possible through Utilities. Non-Fungible Tokens make fractional ownership of physical assets, like real estate and rental properties, possible. Get ready to invest in the future of property ownership.
What features should you activate to fully leverage the NFT utility using the METAV.RS solution?
The NFT Utility builds upon the core characteristics of NFTs. It adds a range of exclusive privileges that set them apart from other digital assets. They provide holders with access to exclusive rights that cannot be claimed elsewhere. This creates creating new opportunities for customer loyalty. Here are some features to unleash the utility capabilities of NFTs.
NFT Digital Twins
Counterfeiting is a significant issue in the world of branding. NFT digital twins can help combat this problem by creating an unbreakable link between physical products and their digital counterparts. This can help to prove the authenticity of your physical products as well as track their ownership. This is the right way to ensure that your customers are getting the genuine article. By leveraging NFT digital twins, create a more trustworthy brand image which inspires confidence and loyalty in your customers. This is quite relevant for Fashion luxury brands.
Retail Activations as an NFT utility
Retail activations are events that take place in physical retail locations, such as pop-up shops or limited-time events. Creating Non-Fungible Tokens which can only be obtained by attending a retail activation will raise a sense of excitement and urgency around your brand products. Offer unique, limited-edition NFTs at your retail activations. And create a buzz around your brand that inspires your customers to take action.
NFT Mint Pages
NFT mint pages are web pages that allow users to mint their own Non-Fungible Tokens. This can be a great way for brands to engage with their audience and create a sense of community. By allowing users to create their own digital assets using your brand’s designs or assets, you can create a sense of ownership and belonging. This can lead to increased brand loyalty and advocacy. NFT mint pages drive a more engaged and invested audience which feels a sense of ownership over your brand.
Social & Reward Tokens
Social & reward tokens are NFTs built to reward users for engaging with your brand on social media or other platforms. By creating social & reward tokens, brands can incentivize users to share their content and engage with their brand. This can help to increase brand awareness and create a more engaged community.
Some steps to Setting up utilities for your branded Non-Fungible Tokens
If you’re a brand looking to create a successful NFT project while attaching the best utilities, there are several steps you can take. You must partner with a Web3 team such as METAV.RS to ensure the technical integrity and security of your Non-Fungible activation.
Utilities should be strengthening your brand message
Identify what type of utility would be most relevant and valuable to your target audience. Ensure that your NFTs have a clear and verifiable ownership structure to add value to your brand. When setting up utilities for your branded Non-Fungible Tokens, it’s crucial that they align with and strengthen your brand message. Your NFT utilities should be designed to add value and improve the user experience, while also reinforcing your brand’s core values and messaging.
The Levi’s 501® NFT provides its users with a lifetime warranty thanks to NFT utility. This brand provides for those who own their digital assets the capability to restore their jeans for life at the Levi’s® Store. This activation allowed Levi’s® to put forward “longevity” as its brand quality, increasing as a result its core value and the one it gives to its customers.
By incorporating your brand identity into your NFT utilities, you can create a cohesive and recognizable experience for your users that will help to build trust and loyalty. It’s important to remember that your NFT utilities are an extension of your brand, and as such, should be carefully crafted to support and enhance your overall brand strategy.
Communicate about what your want to implement
When it comes to implementing utilities for your branded NFTs, clear and effective communication is key. Before launching any new utility, it’s important to communicate the specifics of the utility, including its purpose, value proposition, and any associated costs or requirements, to your community and potential customers. This ensures that everyone understands the benefits of the utilities.
Moreover, seeking feedback and input from your community can help you refine and improve the utility, making it more valuable and engaging for your customers. By effectively communicating about your utility plans and engaging with your community throughout the implementation process, you can build trust, loyalty, and excitement around your brand and its offerings. Gather continually feedback and iterate on your utilities to make sure they remain relevant and valuable to your community over time.
Bring value to your users with your NFT utility
To succeed with an NFT utility, focus on bringing value to your users. You have to understand their needs and desires, and developing utilities that address them. Whether it is providing access to exclusive content, special discounts, or unique experiences, the utility should offer something that users find valuable and useful. This way, you can build a loyal community that not only appreciates your brand but also promotes it to others.
An NFT utility is a powerful tool for brands looking to empower their brand around their products. Explore further NFT resources or connect with METAV.RS to discover all the benefits utilities will bring to your brand. Our team will design a perfect NFT activation which reflects your core brand’s message.