Non-fungible tokens have become effective instruments to support businesses in providing great value to their clients, notwithstanding the recent slump in the cryptocurrency market. It can be said with certainty that NFT technology is here to stay based on the initiatives launched by some of the biggest global businesses.
But given the current environment, it is obvious that businesses must do more to encourage NFT adoption and make it simpler for customers. Here are some actions businesses may take to close the knowledge gap and offer essential value through NFTs.
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1. Add NFTs to already-existing products.
Brands can employ NFTs as an addition to their current productions rather than tackling the difficult task of developing a completely new product line. In order to provide clients with a wider range of value, corporations are beginning to bundle tangible products with NFTs in the sports and entertainment sectors.
For instance, superstars are gaining market share by combining NFTs with concert ticket and merchandise sales. To encourage consumer adoption of NFT, this integration can be improved further on a business level.
Users may now display their NFTs on their social media profiles thanks to brands like Meta and Twitter, which have adopted the technology. As businesses look for new methods to incorporate NFT technology into their current product line, this trend is only anticipated to continue in the future.
Customers are more willing to accept innovative items that streamline their daily lives in the current digital environment. Businesses can look to NFTs as a practical business tool to achieve these expectations.
Over 70% of digital customers, according to a new GloComX survey, are eager to learn more about NFT technology and how it may enhance their experiences in everyday settings. Businesses that want to increase audience engagement and gain a competitive edge should take advantage of this willingness.
OVER 70% OF DIGITAL CUSTOMERS, ACCORDING TO A NEW GLOCOMX SURVEY, ARE EAGER TO LEARN MORE ABOUT NFT TECHNOLOGY AND HOW IT MAY ENHANCE THEIR EXPERIENCES IN EVERYDAY SETTINGS.
Even smaller companies can benefit from this paradigm change and test out NFTs that are geared toward their target market. Because NFTs are still in the early stages of development, businesses can only determine the best solutions by testing different audience offerings to discover what works.
2. Create an educational strategy
NFTs are principally propelled by a successful creative strategy, much like other digital mediums. Utilizing NFTs as tools to tell their narrative can help brands increase NFT usage. These tokens can be used as a gateway for accessing only-for-customers services that are reserved for exclusive use.
Focusing on teaching clients about the wider NFT experience is a crucial component of the equation. The actions required to use NFTs are not well understood by the majority of internet customers. Because of this, businesses must explain the basics of NFTs and cryptocurrency before releasing new goods. It’s critical to use creative messaging to convey the value offered and demystify difficult subjects.
The emphasis of the educational plan should be on employing digital tools to foster an understanding of technology. Social media platforms provide the ideal setting for businesses to routinely disclose technology-related insights and to set up surveys meant to gather feedback from customers.
Separating the fundamental NFT technology from the speculative nature of Profile-Picture NFTs (PFPs) is a major difficulty at the moment. Customers will be able to better grasp how the technology might be put to use outside of the social media-heralded image-trading application. The overall number of Ethereum addresses holding at least 0.1 ETH has constantly climbed, according to Glassnode data. The number of addresses has gone up from 2,654,853 to 3,638,204 since 2020. This shows a growth of more than 50% in the last two years alone.
Communicating the basic functionality of NFTs is another important aspect of the equation. Customers must be made aware of NFTs’ potential as effective tools for real estate and digital asset transactions. Adoption can be accelerated and client trust increased by emphasizing the practical applications.
Countries like Ukraine have raised money for refugees by using NFTs as an efficient technique. Similarly to this, NFTs have been utilized to generate money to support Afghan women who have been struggling as a result of recent events in their nation. Businesses can take use of this potential for NFTs to increase client adoption and connect this emerging technology with a constructive social objective. This may entice users to investigate the occurrence and engage with the technology. Similar to how other ESG activities can be addressed within the NFT umbrella, it depends on company creativity and strategy.
NFTs have been utilized to generate money to support Afghan women who have been struggling as a result of recent events in their nation
4. Connect with the customers
The core of any successful business plan is having loyal consumers. In order to comprehend the needs and expectations of their audience, brands must actively engage with them. These discussions can help companies create NFT services and products that are tailored to the demands of their customers. An efficient method for enhancing functionality and implementing timely adjustments is ongoing consumer engagement.
Products developed by the community may then be used to reward these relationships. In order to help users develop a distinctive brand identity, platforms like Reddit have recently begun granting NFTs to users. Scarcity and distinctive artwork both promote enthusiasm and brand loyalty.
Here are some examples of how brands are adding value to NFTs.
- NFT-based loyalty initiatives
- NFT-accessible exclusive content libraries
- Limited edition works of art
- NFTs as access methods for physical goods and locations
In actuality, the technological potential of NFTs is only constrained by brand creativity. Because the market is still developing, there is a lot of room for creative thinkers to develop fresh applications for the technology.
Businesses must take aggressive measures to advance toward integration despite the fact that NFT technology is still in its early stages. A crucial component of the equation is still customer education. Businesses must inform customers about how NFT technology is streamlining processes and improving customer experiences. The gap between the market applications and the prospective market is still vast, despite customer eagerness to learn more about the technology.