Chris Alpha Cantino (@chriscantino) today took to Twitter to talk about NFTs, and how they hold the potential to completely change the way brands and creators interact with the community. Cantino stated that brands and creators, while constantly exploring new ways to interact with their consumers and the community, brands and creators largely utilize rewards and loyalty programs.
They usually use the mantra of ROI or return on investment while engaging with their audiences to extract maximum value from their consumers.
According to Cantino, while this is effective to a certain extent, it is fast becoming an outdated approach. With the advent of NFTs into the mainstream, they can take a much more holistic approach. Let’s understand how NFTs can completely change the way the interactions take place.
Ways In Which NFTs Can Be Beneficial To Brand/Consumer Interaction
According to Cantino, creators and brands should ensure that they offer tangible benefits for the communities that they interact. This means no leeching, no cash grabs. Brands should look at getting loyalty and greater insights, but the consumers should get more rewards and increased power in return. Those brands that can ensure this will ensure both retention of consumers and innovation.
NFTs can help brands reach these goals in ways that the old system cannot and end up creating whole economies while doing it. He outlined several ways in which they can be utilized.
Using NFTs In R&D
Brands can use NFTs to gain insights into product pain points, development, marketing, and other aspects. Participants in R&D can receive NFTs that grant them exclusive access to product releases, and brands can easily track and maintain these key relationships.
According to Cantino, if a consumer has exceptional knowledge of a brand’s product, they can receive NFTs to onboard new consumers into the brand’s community or provide consumer support. This can be more impactful than a brand employee promoting the product as a consumer can offer unbiased opinions about a certain product.
Consumers can submit content in exchange for NFTs, which can reflect their contribution. Rights can also be programmed into a contract. If the content submitted by a consumer is used in an advertisement, they could receive financial compensation in the future.
Brand managers can keep a score of top contributors and reward them through surprise rewards, tickets, and exclusive access to fans that can bring in the most value to communities. This can further catalyze into increased engagement and attendance.
Fans and consumers can vote on key decisions regarding the brand’s products, such as strategy and product roadmaps. Brands have the option of letting only holders of specific NFTs vote or open up voting to the entire community, rewarding participants for participating in the decision-making process.
Bounties And Lotteries
Brands can engage with the community by dropping quests within the community and rewarding those who complete the quest with NFTs. The quest can be anything from a simple questionnaire to getting more members to enroll in the community.
Community members can also receive rewards through raffles or lotteries. This lowers the onus on members to participate in events regularly and lowers the barrier for entry into the community, allowing people to explore and join the community at their convenience.
Brands can airdrop NFTs into their NFT wallets. Airdropping NFTs is a surefire way of generating interest. Brands can also offer real utility by offering NFTs by attaching some benefit to the airdrop, like exclusive access to an upcoming product.
Brands can offer communities access to their own currency that can create real engagement in the community, allowing the brand and moderators to reward participants. The issuance of a private, community currency can ramp up engagement in the community, allowing members to reward each other for actions performed.
NFTs also prove that your goods or collection are authentic. NFTs tell the brands about your behavior and how it is now traceable and unique.
Several Brands Already Onboard With NFTs
We have already seen different brands explore the use of NFTs to engage with their community and consumers. Dolce & Gabbana has revealed their new NFT collection, with the collection set to go on auction soon. Lays have also partnered with Project Ark to launch their own NFT. The proceeds from the NFT will be going to four non-profit organizations. Meanwhile, DKNY has completely revamped its logo, which they have launched as an NFT as part of an auction for charity.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.