What is an NFT? Quite simply, it is a non-fungible token. But what does that mean, and why should you care? An NFT is a special type of cryptocurrency that can be uniquely identified and differentiated from all other tokens.
They are perfect for representing unique digital assets, such as virtual game items, digital art, or collectibles.
But NFTs can also be used for marketing purposes. In this guest blog post, we at Incus Services will discuss how Fast Moving Consumer Goods (FMCG) brands can benefit from using NFTs in their marketing campaigns.
As the industry continues to grow, it’s important to understand the different types of cryptocurrencies out there – and NFTs are certainly worth keeping an eye on!
NFTs have been in the news a lot lately, and for good reason. Here are 5 ways that NFTs help to ensure the authenticity of product offerings:
1) by creating a unique identifier for each item,
2) by providing immutable evidence of provenance,
3) by ensuring that supply chains are tamper-proof,
4) by protecting against counterfeit goods, and
5) by allowing customers to verify the authenticity of products.
Digital Assets and Digital Ownership
NFTs represent a new way of thinking about digital assets and digital ownership. In the past, we thought of digital assets as files that can be duplicated and shared endlessly. With NFTs, we can now think of them as unique, scarce, and valuable items that can be authenticated and traded.
This is a paradigm shift in how we think about digital ownership, and it has major implications for businesses and consumers alike. The virtual world has created new marketing opportunities for consumer brands as NFTs for fast moving consumer goods FMCGs can become an essential aspect of their promotion toolkit.
But how can FMCG brands benefit from using NFTs in marketing?
Easy! By utilising non-fungible tokens, businesses can create unique and engaging experiences for consumers. For example, imagine being able to unlock exclusive discounts or bonuses by scanning an NFT coded QR code within a store. This could create a more immersive shopping experience that encourages customer loyalty.
NFTS Help Push Online Engagement
It can be difficult to stand out online, but NFTs can help. By using NFTs, businesses can create unique and engaging content that will capture the attention of consumers. For example, imagine an online fashion store that uses NFTs to release limited-edition items. This would create a sense of urgency and excitement amongst customers, driving them to engage with the brand.
There are a few examples of companies teaming up with digital artists to bring FMCGs into the NFT marketplace, such as Procter & Gamble procuring non-fungible themed toilet paper for their Charmin brand.
A similar NFT collection can be adopted for a food service operator or a weekly menu launch. Even for snacks or familiar household items can be transformed into fungible tokens or NFTs to drive customer engagement and interest. Utilising NFTs to create a digital version of common items places unique value on mundane items.
Reward Customer Loyalty
In addition, NFTs can be used to reward customers for their loyalty. For example, a customer could receive an NFT for leaving a review or sharing a product on social media.
This would incentivise customers to interact with the brand and promote its products online. It could also help to build customer loyalty and create a sense of community around the brand.
Sometimes the online engagement may not be positive, but any marketing campaign caters for both positive and negative engagement. Social media platforms are part of brand building and creating immediate awareness for goods and services. NFTs essentially offer short term promotional engagement for fast moving consumer goods.
Digital Wallets are becoming just as popular as spending real money
Digital wallets are becoming increasingly popular as people look for ways to manage their money more easily. These wallets allow users to store and spend their money without carrying around physical cash. While there are many different types of digital wallets available, they all share one common goal: to make spending and managing money more convenient. With so many people now using digital wallets, it’s clear that this is a trend that is here to stay.
Additionally, as FMCG brands expand into the digital space, NFTs could be used to ensure the authenticity of product offerings. For example, a customer could use an NFT to verify that a digital product is a genuine article.
There are endless possibilities for how NFTs can be used in marketing, and we are only just beginning to scratch the surface. As the technology continues to develop, we will likely see even more innovative and exciting ways for businesses to utilize this powerful tool.
So far, several companies have shown interest in using NFTs for marketing purposes. It will be interesting to see how this trend develops over time.
It’s important to know that understanding data analytics and marketing analytics can also help with marketing toward a particular demographic. To make the best of your business objectives, check out the Three Most Powerful Analytics Techniques over on the Incus blog.
Leslie Lee Fook is an innovative leader in the field of digital technology in the Caribbean and a future facing visionary with over 20 years of experience. The main coffee guy at Incus Services, Leslie and his team of consultants focus on business intelligence and cyber security, serving both large and medium sized organisations by helping them solve their data challenges.