3 Ways NFTs Can Create Consumer Value
By Will Johnson, CEO, Harris Poll
and Scott Weintraub, VP of Brand Growth, R&CPMK
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Everyone is trying to figure out what to do about non-fungible tokens (NFTs). These modern tools, born out of the crypto boom, have been viewed as both a passing fad and a future tool for artistic compensation.
Recent research from The Harris Poll and R&CPMK found that about half of consumers familiar with NFTs (47%) are interested in brands offering them as a commercial product, providing new use cases for brand marketers to capitalize on the hyper-relevant digital tokens that occupy so much consumer mindshare. When leveraged correctly, NFTs offer several applications for driving increased revenue and awareness around brand products:
1. NFTs as an incentive for a larger purchase.
Big-ticket items such as festival tickets, cars or trips can make most consumers hit pause and consider purchases. Unlike impulse buys – such as food, beverage or CPG products – these larger ticket items often require repeated exposures to creative campaigns or an extra incentive to push consumers over the line on a purchase.
Our research indicates that NFTs could offer marketers another tool for pushing customers through the funnel, with 30% of Americans stating they would like to receive an NFT as a gift with a purchase.
Indeed, the possibility of attaching an NFT to a purchase teases several value creation possibilities for brand marketers. For live events or travel, an expiring NFT offer could provide a sense of urgency to the purchase as an added incentive to buy now. NFTs could also offer a a seal of authenticity. For example, luxury brands such as Gucci are experimenting with NFTs tied to the purchase of their products. The NFT in this case serves as a luxury indicator, marking the occasion of the purchase and proving the authenticity of the brand to others or third-party buyers.
Whether driving immediacy for an upcoming purchase or as an addendum to prove the authenticity of a luxury item, incentive-based NFTs provide marketers innovative ways to leverage this new technology. By tying a unique token to a physical product or experience, it marks that purchase as special. And the specialized, unique value of NFTs can boost sales, create differentiation and ultimately increase the perceived consumer value of a product.
2. NFTs as commemorative memorabilia to deepen consumer connections
Much like apparel, figurines or trinkets, an NFT represents a myriad of options for marketers looking to create unique, commemorative items for specific events. Instead of tying an NFT to a purchase, marketers can use NFTs as a subsequent item to deepen consumer connection within a marketable moment in time as a token of appreciation.
3. NFTs as additional revenue streams
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