Non-fungible tokens (NFTs) have swept the world of art by creating ways for musicians, designers and other creatives to control how their work is distributed.
According to the 2021 NFT adoption report from the Finder, 4.6% of Australian Internet users now own an NFT. However, the NFT market is growing exponentially. The global NFT market recorded sales of A $ 35 billion last year, and Shopify surveys show that more than a quarter (27%) of Australian and New Zealand consumers are likely to buy NFTs this year. I am.
Others think of NFTs as a fad for cool kids, but brands use NFTs to build deeper consumer connections and long-term loyalty.
What is a Non-Fungible Token (NFT)?
“NFT is an irreplaceable token stored on the blockchain. It’s a form of digital ledger that keeps a record of each transaction that occurs,” said 1687, the development responsibility of the NFT-based membership club. Said Raj Kallem.
It is common to attach digital content such as art, music and video to these tokens. Tokens represent something else. In some cases, NFTs can be used to unlock the benefits of a particular consumer (this is called token gating). NFTs are also used for authentication and proof of ownership.
Let’s break down the phrase “non-fungible token”. “Substitutable” means interchangeable or interchangeable. Spoons are an example of alternatives because they lack unique properties and can be easily duplicated or replaced with the same item. “Non-substitutable” means that the tokens are unique and incompatible. Real estate, land and diamonds are examples of irreplaceable assets due to their unique properties.
Authentication is an important part of NFT and blockchain technology. People who do not have an NFT may be able to view or access digital content attached to other people’s NFTs, but only one wallet can own an NFT.
What is token gating?
Tokengating is “a way to add value to NFTs by giving owners exclusive access to communities, content, and even physical products in addition to digital tokens,” Kallem said. increase.
For example, Shopify sellers have begun experimenting with token-gating NFTs. This is a strategy that gives token holders access to exclusive products, experiences, early access to store openings, or invitations to member-only events.
NFT holders must verify ownership in order to access the TokenGate benefits. NFTs are owned and stored in the customer’s crypto wallet, and token gating works by looking into the wallet to see if there is a particular NFT.
The online store token gating app is used to check a customer’s wallet to verify that it contains a particular NFT. Customers are asked to allow the store to view NFTs in crypto wallets. After the online store confirms that the customer has the required NFT, the customer can access the exclusive content.
NFT: New loyalty program?
Today, we are seeing an exponential rise in brands born on the web that offer compelling online experiences and strong, loyal relationships with customers.
As customer acquisition costs rise, brands are experimenting with new ways to develop deeper connections with their customers. As brands invest in both short-term performance initiatives and long-term brand building to create lifelong customers and brand evangelists, customer loyalty programs and exploration of new engagement channels are becoming increasingly important. ..
For retailers, exclusive product access is one of the most practical tokengating use cases available only to token holders as a way for limited edition items to reward loyal customers and fans.
Token Gate Commerce It can also be used for access to future NFT releases and airdrops, as well as exclusive access to the community such as Discord channels, face-to-face events, and retail activations.
In the United States, many brands such as the Chicago Bulls and Martha Stewart have begun experimenting with NFTs. Shopify recently partnered with Doodles in the NFT collection on SXSW 2022 to create an immersive experience called Doodleland for festival attendees and Doodle NFT owners. Anyone can attend the event, but Doodles customers have been able to unleash all sorts of experiences, including exclusive access to apparel and exclusive merchandise.
— Doodles (@doodles) March 23, 2022
Tokengating “provides amazing benefits because FOMO can create,” said Ty Daniel Smith, CEO and co-founder of crypto brand marketing agency Coinbound. “Word of mouth is one of the most underrated marketing variables, but tokengating really proves the potential ROI of word of mouth. When done correctly, the NFT project becomes viral with a good concept. , Token gating is available. “
Blockchain technology applications are constantly evolving, but the benefits are clear. It’s a great way to be safe, talkative, and build and reward brand loyalty.
This is a truly exciting moment for both brands and consumers. From cryptocurrencies to NFTs and token gate commerce, we is witnessing the foundation of a world where Web3 technology is transforming the types of experiences brands create to build customer loyalty, community and connections.
Robin Marchant is Marketing Director of APAC – Shopify.
How NFTs Unleash Brand Loyalty
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