How NFTs Can Improve Your Relationship with Your Customers and Boost Customer Loyalty

Yes, you read that right. NFTs, or Non-Fungible Tokens, can help your brand build stronger relationships with your customers and increase their loyalty. If you don’t know what NFTs are—let alone how they can help you with your customers and your brand’s relationship marketing—I think this post is going to surprise you. Plus, I’ll share three ways to use NFTs in your business. Ready to dive in?

An NFT is a type of asset that cannot be modified and is unique; it is assigned a kind of digital certificate of authenticity and a set of metadata related to that authenticity, its initial value, and all acquisitions or transactions that have taken place, as well as information about its creator. It is important to reiterate that this metadata cannot be modified.

As you read this post, I’m sure a question has popped into your mind. What is a non-fungible asset? Remember, NFT stands for non-fungible token (or the generic term for virtual currency, such as cryptocurrencies). Well, it’s important to know that in the legal system, we distinguish between fungible and non-fungible assets. Fungible assets are those that can be exchanged, with their value determined by their quantity, measurement, or weight. Non-fungible assets, on the other hand, are those that cannot be substituted.

An example of a fungible good would be money (a fifty-euro bill), and an example of a non-fungible good would be a work of art. A work of art cannot be consumed when used, nor can it be replaced by another painting, since each work is unique (there may be a copy, but it is not the original).

Given this, you could say that NFTs are unique assets that cannot be modified or exchanged for another of equal value. So you can think of an NFT as a work of art in a museum—it’s one of a kind. If you want it, you can only buy the original, assuming it’s for sale.

But how do NFTs work?

These operate using blockchain technology, which is exactly the same technology used by cryptocurrencies. Through this technology, the NFT stores that metadata, thereby ensuring that it cannot be altered, since the blockchain is resistant to data tampering.

Lately, you’ve probably heard and read some fascinating news stories about digital designs being sold at exorbitant prices through NFTs. One of the most talked-about cases is that of “Everydays: The First 5,000 Days” by Mike Winkelmann, better known as Beeple, which sold for $69.3 million.

Now that we’ve set the stage, let’s see how NFTs can improve our relationship with our customers. Let’s get started.

 

Improve Relationship Marketing and Customer Loyalty with NFTs

 

The advent of the digital age brought about a change in the way companies interacted with their customers. From that point on, two-way communication emerged: brands no longer simply communicated with customers; they now received responses, and customers even took the initiative in communication.

This also led to a change in the way customer loyalty marketing is conducted.

However, with NFTs, this relationship is now evolving to the next level, as consumers can now engage with the brand, express their opinions, or provide feedback—and even have a say in decisions regarding new product lines or potential future services.

What does this mean?

Any company can issue an NFT that functions as a seat in a virtual space within the company, through which it can give these consumers access to new offerings and incentives, as well as certain privileges. All of this is done through an NFT, which the consumer can sell at any time.

Perhaps the simplest example of this is the Web3 company and leader in NFT security, Ledger, which sells a hardware device that securely stores NFTs and other tokens (cryptocurrencies like Bitcoin). This Ledger wallet is available in stores for prices ranging from €59 to €200.

Ledger recently launched Ledger Market, an NFT marketplace, to sell a limited-edition collection of Ledger Genesis NFTs.

These tokens sold for between 0.3 ETH (about 400 USD) and 0.569 ETH (about 800 USD), and anyone who bought one also received a new black Ledger wallet.

Ledger users knew full well that they could purchase that wallet separately; however, they were interested in joining Ledger because they would receive any future airdrops that Ledger decides to distribute to Genesis NFT holders.

For its part, Ledger ensures that these customers remain with the platform for the long term and remain active in the community, since they can sell their NFT at any time; however, they will want to do so for a price higher than—or at least equal to—what they paid for it. This means they will want the community to grow, thrive, and improve, ensuring the ecosystem’s success, because the community’s value drives the value of the NFT.

However, there are more ways your brand can use NFTs. Let’s take a look at them.

 

3 Ways to Use NFTs to Benefit Your Brand.

 

As you know, this technology is still in its infancy, and only a very small number of companies—most of which are in that industry—are beginning to use NFTs for marketing purposes.

But keep in mind that the companies and brands that integrate Web3 now—with marketing experiences and strategies—will be the ones that build their own communities in a more solid and successful way, compared to those that adopt it later.

Here are 3 ideas.

 

IDEA 1: Use NFTs to raise money for new projects.

Similar to crowdfunding, NFTs are an excellent tool for growing a business. Let’s imagine a small winery. By launching NFTs, the winery will not only have the funds to purchase new vineyards, improve production, develop a new wine variety, or invest in marketing to boost sales, but it will also give the owners of those NFTs a voice, providing valuable insights that can be applied to the broader market.

Similarly, the brand could offer, in exchange, a certain number of bottles of exclusive wine per year, or a tour of the winery with a free wine tasting, among other benefits.

 

IDEA 2: Turn NFT holders into brand advocates.

One of the biggest advantages of NFTs is that holders have an interest in helping to maintain and increase the value of the community they’ve purchased into (for them, it’s like a small investment).

The best way to do this is by acting as a brand advocate or evangelist. What better advocate could there be for a brand than someone whose pocketbook is directly affected by it?

However, turning NFT owners into brand advocates is no easy task. People have been struggling with this for decades. To do so, you need to give them something exciting to share.

 

IDEA 3: Use NFTs to increase brand awareness.

One of the principles of Web3 and NFTs is communal ownership. When you buy an NFT, you also buy the intellectual property rights to that token, and those rights include the digital art.

Ownership of that NFT allows you to use that digital artwork—which is associated with the brand or project it represents—in your own name.

It often happens that NFT owners feature that digital art on their profiles or share it with the world on social media (as a sign of their connection to the brand or project), thereby increasing the brand’s visibility.

This is the case with Somi Arian, a well-known British technologist who, as a member of the Moonbird NFT community, added an image of her token appearing behind her left shoulder to her social media profile pictures.

As you can see, technology leads to the creation of new strategies and initiatives every day that help businesses grow, retain their customers, and increase their visibility. At MioGroup, we constantly keep the latest technological advancements in mind as we develop comprehensive marketing strategies that use the most effective tools to achieve the results our clients expect. Want to talk?