In a recent report released by the World Economic Forum, it explained a series of events that have happened since NFTs got into the Consumer Packaged Goods industry.
It started by revealing how in Q1 2023, Starbucks, to build customer engagement through loyalty launched its first NFT project, Odyssey, on Polygon.
It added how through the use of phygitals, brands such as Nike and Adidas, are capitalizing on the connection between physical and digital products.
It mentioned two other ways in which NFTs have been used by CGPs: for royalties and revenue generation, for digital collectibles and NFTs,and for sourcing traceability in their supply chain.
Examples include Nike, Coca-Cola, and Birra Peroni respectively. Reflecting on the journey so far, it noted these four lessons that can guide other CGP brands who want to venture into the NFT world.
Build NFTs with value
NFTs should provide a clear value proposition for customers, offering unique and valuable digital assets. Customers will be attracted to NFTs when it present an opportunity to own something.
NFTs can come with various utilities. For example, owning an NFT might grant access to exclusive content, experiences, or events.
Implement a strategy into the market
A sound Go-to-Market (GTM) strategy for NFTs should revolve around community building, gamification, and expansion from small communities to broader audiences.
To start, a strong GTM strategy should focus on cultivating a community of enthusiastic early adopters and supporters.
These are often referred to as “superfans” who have a genuine interest in the NFT project. This approach not only encourages participation and loyalty but also lays the foundation for long-term success and sustainability.
Use NFTs for customer segmentation
Brands can leverage NFTs to enhance customer segmentation and tailor rewards to each customer. Customer segmentation is about recognizing that not all customers are the same.
They have diverse preferences, behaviors, and needs. NFTs can play a pivotal role in understanding this diversity.
Brands can use NFTs to gather valuable data about their customers. By analyzing this data, brands can segment their customer base into different categories based on their NFT preferences.
Once customers are segmented, brands can create tailored rewards and incentives. Personalized rewards enhance the overall customer experience.
Loyalty program and NFTs
With NFTs, retail brands can create more exciting and enriched loyalty programme to reward their loyal customers. Also, due to the smart contract integration into NFTs, loyalty programs are becoming smarter, offering customers programmable assets for a personalized and engaging retail future.
