NFTs have become quite popular because of their trading ability in 2021 (honestly people were gambling NFTs then in the hopes of finding something that will 10x and 100x).
And hence the meta – “NFTs are just dumb cartoon pictures gambled on the blockchain”.
But these little blocks of code have unlocked a whole new dimension of possibilities, turning intangible concepts into valuable, one-of-a-kind digital assets.
Right now, from creators and small businesses to big brands, NFTs are being used. And there are a few businesses that mastered how to leverage NFTs to up their business.
And this article is all about that. Let’s begin!
Imagine you have a unique, special sticker that you can put on anything to prove that you own it. That’s what an NFT is in the digital world.
NFT stands for “Non-Fungible Token.” “Non-fungible” means it’s one-of-a-kind and can’t be swapped for something else like money can.
“Token” just means a digital proof of ownership.
So, NFTs are like digital certificates of ownership that you can attach to things like art, videos, music, or even tweets on the internet.
They use a special technology called blockchain to make sure nobody can fake them, showing that you truly own that digital item.
Just like you’d have the only key to a secret treasure chest, NFTs give you the only key to your digital treasures.
Before NFTs, it was tough to prove you owned something unique online, like a rare meme or a digital painting. NFTs changed that by giving a solid and unchangeable proof of ownership, like a digital signature.
Think about artists, musicians, and even game developers.
They can now create and sell digital stuff as NFTs, knowing they’ll get credit and payment whenever their creations change hands.
This opens up new ways for creators to earn a living without relying on traditional middlemen.
But the thing is, the use cases of NFTs isn’t just virtual and isn’t just limited to art and paintings. There is more…
Whether it’s an expensive coffee brand or a even a small car wash business in San Diego, NFTs are part of their business, and let’s explore how NFTs are benefiting each of these small businesses.
It’s quite common to see the duplicates of something that is quite popular and expensive. The same has happened with this expensive coffee brand. Enter QR Code and NFTs.
Problem: Fake and counterfeit versions of Blue Mountain coffee have flooded the market, reducing the value and authenticity of the genuine product. This harms both consumers and legitimate coffee growers.
Solution: To combat this issue, the coffee estate at Sherwood Forest has partnered with a tech firm to implement a blockchain system that uses NFTs.
NFT Implementation: Each barrel of authentic Blue Mountain coffee is assigned a unique NFT. This NFT here is like a digital certificate of authenticity that cannot be duplicated or faked.
Authentication Process: A unique QR code is attached to each product. Consumers can scan this QR code to trace the journey of their coffee from its origin. The QR code connects to the NFT, which contains verified information about the coffee’s journey, including picking, sorting, barrelling, roasting, and transport.
Guaranteed Authenticity: By scanning the QR code and verifying the NFT, consumers can be assured that the coffee they are purchasing is genuine Blue Mountain coffee. This increases consumer confidence and ensures that they are not buying counterfeit or inferior products.
Additional Benefits: The system also allows consumers to tip individual growers and workers using cryptocurrency. This benefits the local communities and creates a direct link between consumers and producers.
Overall, the combination of NFTs, QR codes, and blockchain technology offers a way to verify and authenticate high-end products like Jamaica Blue Mountain coffee, creating a transparent and traceable supply chain that benefits both consumers and growers.
Do you know that NFTs can be implemented in Loyalty Programs? Something that Starbucks is also trying to do.
Background: Soapy Joe’s is a car wash company based in San Diego. They have introduced a unique promotional campaign that leverages NFTs to enhance customer interaction and reward loyalty.
Campaign Structure: The campaign is designed as a scavenger hunt-style promotion. Customers who visit any of Soapy Joe’s 17 locations can participate in the campaign by collecting different Ethereum-based NFTs.
NFT Collection and Rewards: Customers are incentivized to collect multiple NFTs from different locations. As customers collect more NFTs, they unlock various rewards. These rewards range from physical items like keychains and hats to experiences like amusement park tickets and a free annual membership to the car wash.
Customer Engagement: The NFT campaign has significantly boosted customer engagement. Customers are visiting multiple locations to collect different NFTs, which is driving increased foot traffic and interaction with the car wash chain.
NFT Design and Concept: The NFTs themselves are designed based on the company’s iconic air fresheners, which have a dedicated following among their loyal customers. The physical air fresheners have become a cult collectible, and the NFTs mirror this concept in the digital realm.
Redemption Process: After each visit, customers receive an email containing a link to redeem the NFT associated with that location. The NFT-related emails have a high open rate, indicating strong customer interest.
Increased Web Traffic: The promotion has resulted in a 10% increase in web users, demonstrating the effectiveness of the NFT campaign in driving online engagement as well.
Why do you think brands like Gucci, Nike, Tiffany & Co.. are using NFTs? Yeah, of course, to make more with NFT sales…but also, to improve supply chain integrity, customer engagement and virtual experiences.
Bringing Brand Affiliations into the Virtual World: Fashion and lifestyle brands are leveraging NFTs to enable buyers to bring their brand affiliations into the virtual world. One example is allowing customers to use NFTs as in-game skins or accessories, which enhances their virtual presence and engagement.
Virtual Fashion Company RTFKT: RTFKT is a virtual fashion company that has been at the forefront of merging NFTs with fashion. They’ve collaborated with well-known artists like Jeff Staple and Takashi Murakami to release virtual sneaker designs and avatars. Their success in this space led to their acquisition by Nike.
Adidas and Prada Collaboration: Adidas has ventured into the NFT space with collaborations such as the “Into the Metaverse” series. They’ve also collaborated with luxury brand Prada and artist Zach Lieberman to create NFTs.
Luxury Brands and NFTs: Luxury brands like Dolce & Gabbana, Jimmy Choo, and Gucci have launched their own NFT collections. These brands are exploring how NFTs can enhance customer engagement, offer unique experiences, and provide a new dimension to their products.
Authentication and Counterfeit Prevention: Counterfeit goods are a major concern for the fashion industry. NFTs can play a role in addressing this issue by verifying the authenticity of real-world items and creating virtual versions of these items. This not only ensures authenticity but also allows customers to possess a virtual representation of their favorite luxury products. ity, NFTs take it a step further by adding a layer of uniqueness and provenance to products. NFTs can serve as a digital certificate of authenticity that is directly linked to the physical item.
Virtual Collectibles and Accessories: NFTs can also represent virtual collectibles, such as virtual sneakers or fashion accessories. These digital items can hold value within virtual worlds and gaming environments.
Building a Community: NFTs provide a way for brands to engage customers beyond traditional products. Buyers can become part of a community by owning and interacting with NFTs tied to the brand.
Instead of digital memberships, imagine NFT memberships…
Celebrity Chefs and NFTs: Celebrity chefs like Tom Colicchio and Spike Mendelsohn have entered the NFT space by releasing pizza-themed NFTs. These NFTs often feature unique digital art and are sold to the public.
Exclusive Memberships and Perks: Some restaurants are taking NFTs a step further by offering NFT holders exclusive memberships and perks. For instance, Flyfish Club, dubbed the world’s first-ever NFT restaurant, provides NFT owners with unlimited access to a private dining venue and exclusive events.
Chotto Matte’s NFT Offering: Chotto Matte, a global Nikkei dining destination, plans to release an NFT called “The Founder.” This NFT will be a one-time-release collectible chip card that grants its owner exclusive membership access to various benefits and experiences.
NFT Perks at Chotto Matte: The NFT “The Founder” offers a range of unique perks, including personal invitations to restaurant openings worldwide, first-class flights, premium farm visits, exclusive at-home experiences with the executive chef, sports event tickets, and more.
An NFT Ticket isn’t just a digital ticket. It can be a key to a cool experience or even a collectable aka a memory that can be stored in a wallet forever.
Coachella is one of the largest, most famous, and most profitable music festivals in the world. And they decided to go with NFTs when it comes to issuing tickets.
Coachella NFT Marketplace: Coachella has partnered with FTX US to create an NFT marketplace. They have released three collections of NFTs for sale.
Coachella Keys Collection: This collection includes 10 NFTs that are being auctioned. Each NFT holder of this collection receives a lifetime ticket to the Coachella music festival, providing access to the event every year. Additionally, they gain access to virtual experiences produced by Coachella indefinitely. Special perks at the 2022 festival, such as front row access and celebrity chef dinners, are also included. NFT holders can use their tokens to redeem two festival passes each year.
Royalties and Resales: If NFTs from the Coachella Keys Collection are resold, a portion of the proceeds goes to various parties involved, including Coachella, photographers, art installation artists, and design artists. This royalty system benefits the original creators and contributors.
Physical Items and Experiences: In addition to the lifetime-pass NFTs, Coachella is offering other NFT collections. These include NFTs that buyers can use to redeem a physical Coachella photo book or access fan-favorite festival photos and soundscapes. These NFTs are priced at different levels and offer a mix of digital and physical rewards.
Charitable Aspect: Part of the proceeds from NFT sales will be donated to charitable organizations, including GiveDirectly, Lideres Campesinas, and Find Food Bank.
Leveraging NFT Trend: Coachella is tapping into the NFT trend to offer unique, digital, and collectible items related to their festival. By utilizing NFTs, they can enhance customer engagement, create new revenue streams, and provide exclusive experiences to their audience.
Note: The lifetime pass NFTs made unavailable due to FTX cryptocurrency crash.
In essence, NFTs have transcended their initial hype to showcase practical and diverse use cases across businesses.
From safeguarding authenticity in luxury products to fostering customer loyalty in unconventional ways, NFTs have proven their value as tools for innovation.
As these real-world applications continue to unfold, it’s evident that NFTs offer a tangible avenue for businesses to enhance engagement, establish uniqueness, and unlock new revenue streams in the digital age.