Harnessing the power of NFTs at point-of-sale
2 minute read
There is a lot of excitement surrounding NFTs (non-fungible tokens), they skyrocketed in 2021, with 11.6% of consumers now stating they own at least one.
We are seeing a growing number of brands creating unique, ownable (and sometimes winnable) NFTs to create two-way engagement; offering personalised and one-of-a-kind experiences for consumers, while delivering a wealth of data.
The rise in popularity of NFTs has created a strong commercial opportunity for brands, and we are seeing adoption across all industries, most notably with alcohol, hospitality, FMCG and fashion.
Here are some of the key trends and best-in-class examples of how brands are harnessing NFTs to build their brand at point of sale.
Pairing digital with physical products.
Giving buyers access to digital activations through the purchase of limited-edition products. Brands are partnering with celebrities, influencers and artists to add value through offering digital extensions to physical items. Fans of Ciaté London that purchase their limited-edition products also receive an NFT that brings their selection to life, revealing hidden properties, such as their lip cream that changes shade based on the temperature.
Ownable NFTs offer fans a badge of membership to a community of like-minded people, creating brand loyalty and a unique way for fans to interact with brands they love. Eve bar in London has launched an NFT cocktail menu, giving owners of the digital assets access to secret cocktail recipes and free drinks when they visit the bar in Covent Garden.
Utility over value.
NFTs can act as a gateway or ticket to a range of experiences and products, giving fans exclusive access and experiences. Bacardi's luxury tequila brand Patrón released a ‘one-of-a-kind' reserve, available for purchase for the first time ever, but only available to fans that already own a Patrón NFT.
With the popularity of NFTs still on the rise, brands and consumers seem less focussed on their monetary or resale value, but instead are embracing their societal and experiential perks – looking to the one-of-a-kind access, ownership and membership opportunities they offer.