The World Economic Forum published a report describing the entry of NFTs in the world of retail. According to the organization, NFTs have been utilized in various use cases for businesses worldwide since their early days.
The three main use cases mentioned are using NFTs to boost customer engagement, creating phygitals that bridge physical and digital worlds, and expanding customer reach and brand awareness.
It provided examples such as Shinsegae’s exclusive benefits, where the retail giant issued 10,000 NFTs, each with unique rankings. These NFTs granted VIP access, valet services, and in-store discounts based on the NFT’s rank.
Regarding phygitals, it mentioned how Chalhoub Group’s SOL3MATES, a Middle Eastern retailer, launched its Web3-native sneaker brand, SOL3MATES, bridging the physical and digital realms.
It also highlighted Macy’s Parade NFTs, used for events like the Thanksgiving parade and Fourth of July fireworks, raising brand awareness and supporting a non-governmental organization.
Lessons learned
Furthermore, the report by WEF also highlighted the lessons gained from the application of NFTs in this industry and what retail brands should know and do about it.
WEF said that offering customers the opportunity to redeem NFTs earned through interactions with the brand can create more loyal fans than allowing users to receive an NFT and wait for its value to rise.
The implication of this is that while there are various ways to launch NFT-related products for retailers, this is one of the best methods because it fosters a longer-term customer relationship.
Secondly, WEF revealed that NFT-based rewards may prove advantageous over traditional rebates since they require less upfront cash outflow. Retailers can explore this innovative approach to reward customers.
The third lesson is that launching NFTs in small-scale pilot projects is crucial to learning and gauging market momentum. Timing the release appropriately is as crucial as defining content, purpose, and the target audience.
Additionally, it emphasized that combining traditional CRM data with Web3 insights from NFTs can help retailers create in-depth customer profiles.
A successful NFT launch hinges on a well-crafted GTM strategy, and NFTs empower retailers to efficiently segment their customer base and introduce innovative communication channels. They foster a sense of belonging and provide a unique means to engage with customers.
