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Non-fungible tokens (NFTs) entered the zeitgeist last year and trading volume hit $17 billion last year. NFTs allow one to prove ownership of a unique digital asset. Companies in various sectors such as entertainment, fashion and sports have started using NFTs. Starbucks recently announced plans to issue NFTs later this year as part of its loyalty program. Some other prominent companies that have issued their own NFTs include Nike, Adidas, Hasbro, Burger King, Taco Bell, and Louis Vuitton. Here are 3 different ways you can use NFTs to grow your business
Launch Clubs with NFT Membership Passes
Your company can launch exclusive clubs for your super fans and use NFTs to gain entry. To encourage membership, you can offer discounts and exclusive access to specific items or services. Your business benefits from the initial coin income and the royalties from secondary sales from the NFTs. The NFTs will also aid in your marketing efforts as members can better showcase their membership on social media platforms.
Related: A Modern Marketers Guide to NFT Adoption and Branding
Using NFTs as proof of membership also benefits members. Members no longer need to remember their password or carry physical cards; instead, they can simply prove membership through the NFT in their digital wallet. In addition, owning an NFT gives members a sense of ownership and increases their involvement in the community.
While NFTs are digital assets, analog companies can also use this strategy. In 2021, Gary Vaynerchuk, along with David Rodolitz, Josh Capon and Conor Hanlon, launched Flyfish Club, a private restaurant open only to NFT members. Flyfish Club NFT owners get unlimited access to New York City dining and other social experiences.
Sell NFT based tickets
Your company can put tickets for events such as live performances, conferences and sporting events on the blockchain and sell them as NFTs. Using NFT-based tickets helps businesses reduce ticket counterfeiting and scams. The verifiable authenticity of tickets also supports a secondary market for tickets. Research notes that resaleability of tickets encourages visitors to buy in advance; this translates into higher revenues for event organizers.
Billionaire Mark Cuban shared that the Dallas Mavericks are investigating how to convert their tickets into NFTs. He explained that NFT-based tickets will allow consumers to resell tickets while making royalties.
Related: Make Your Brand a Known Name Using the Power of NFTs
Ticketmaster, which uses Dapper Labs’ Flow blockchain, has already started issue tickets as NFTs for select events, which would act as collectible memorabilia, as well as a shareable attendance record. The pilot-stage ticket giant hit more than five million NFTs over a six-month period, some of which were automatically issued to attendees of specific events.
Create Loyalty Programs
Loyalty programs offered to customers based on their purchase history are popular with businesses because they increase customer engagement and retention. Companies could use NFTs to track past purchases and reward customers. Unlike traditional loyalty programs, NFT-focused loyalty programs allow customers to better showcase their connections to the brand; this in turn helps promote the business.
Customers would benefit from NFT-supported loyalty programs as they can transfer or buy them from others. These features are typically not available with traditional loyalty programs where the data resides solely in the company’s database.
Burger King launches Royal Perks, an NFT-backed loyalty program. By scanning a QR code on each meal box, customers could receive one NFT game piece. After receiving 3 NFT game pieces, customers were programmatically given a reward such as free Whooper sandwiches for a year, a phone call with famous artists or a digital collectible NFT.
Related: Pharrell Williams, Contemporary Artist Nina Chanel Abney and Brand Builder Shaun Neff Announce the Launch of Game-Changing NFT Platform
Starbucks has also entered the NFT space with its Starbucks Odyssey, an extension of its Starbucks Rewards program. Now it not only connects members to the company, but also each other and even employees – and offers the chance to participate in a range of activities and challenges around the brand and all things coffee. Participants are rewarded with digital collectible ‘journey stamps’ (NFTs). There is also the option to purchase limited edition stamps through a built-in marketplace. The stamps can be sold, bartered or exchanged for premium benefits such as unique merchandise and invitations to exclusive events and trips.
Applying NFTs in your business
Most companies don’t have to rebuild their own NFTs from scratch. Instead, you can look for plug-and-play alternatives that allow them to create NFTs without any technical expertise. These solutions are suitable for most companies.
The possibilities with NFTs are endless, offering a variety of new opportunities for businesses, small, emerging or established. Club memberships, ticket sales and marketing are just a few ways you can grow your business. With technological advancements, more potential applications will emerge.
It’s always a good idea to pay attention to news and stories from the NFT space to see what’s new and how other people are using the technology in their business.