Building customer relationships is vital for any brand, and this new breed of NFTs is a potent means of outreach, says Ben Plomion, chief marketing officer at Dibbs.
Branded NFTs (non-fungible tokens) have gone mainstream. Fashion moguls, streaming platforms, and other diverse industries now use blockchain technology to acquire valuable customers. Yet, in a rush to launch NFTs, businesses should remember they aren’t just selling tokens – they’re selling a brand relationship.
It’s a simple business reality that loyal customers shop more frequently and spend more per transactionOpens a new window than those who are just passing through. NFTs are no different; you’ll do well to cultivate loyal customers who want to buy multiple tokens from any given drop because they’ll be more likely to buy from you again when your next drop comes around. Unfortunately, the limited-time nature and niche appeal of many NFT collections can make it difficult to strike that balance.
The good news is that brands are finding new ways to use collectible-backed NFTs — tokens that represent the value of real-world, highly in-demand assets — to build customer relationships that make the most of the medium. Here are a few examples of what I mean:
Adidas
As a business model, collectible-backed NFTs are fairly straightforward — token holders choose whether to redeem a physical item or trade it for a more valuable NFT. However, Adidas embraces this model with one additional step: the ability to use the digital asset directly. Adidas NFTs come with branded “Virtual Gear†to be worn within the metaverse. Token holders can apply these wearables to virtual avatars across various interoperable platforms, creating personalized looks with Adidas-branded content.
But that’s not to say Adidas is sequestering its Virtual Gear from physical merchandise — customers can also redeem their NFTs for exclusive products, including a Money beanie, a Hash hoodie, and an Indigo Hertz tracksuit. This model reinforces brand connections by incentivizing customers to acquire their favorite apparel in any format. It’s all part of Adidas’ strategy to tap into multiple collectibles markets and extend brand visibility across the real world and the metaverse in equal measure.
See More: NFTs Are Changing the Face of Luxury Brand Marketing
Fanzone
Fanzone is a fascinating case study in sports NFT brands. Although it offers physical collectibles and merchandise, these items are not the primary selling point of the platform. Instead, the company is all about expanding its community powered by NFT trading.
The Fanzone Sports Club project offers drops that double as membership passes, which can be sold or traded on NFT marketplaces. Each pass grants various benefits, such as merchandise or game tickets, depending on token rarity. But the most consistent selling point is community access, including invites to real-world events, access to a private Discord channel, and digital fan experiences. Token holders may join to learn more about their favorite athletes but ultimately stay because they become part of a community of like-minded fans.
The Gap
The Gap’s initial NFT offering took inspiration from video games with a series of limited edition artwork broken out into multiple tiers. Common NFT drops were available at the most accessible price point but could be traded for the more expensive Rare and Epic tokens. Once the initial phase was complete, Epic NFTs increased the chance of winning exclusive digital art and a hoodie designed by Frank Ape creator Brandon Sines.
On top of that competition, Gap’s recent Logo Remix campaignOpens a new window lets customers buy NFTs that correspond to a series of community-designed creations. Initial holders of the NFTs can redeem the tokens for real-world hoodies and corresponding AR filters, or they can stick with the token to keep their collection online. This approach broadens the appeal of The Gap’s real-world merchandise while leveraging the gamified, community-building possibilities of NFTs.
Nike
Nike is well-known in collectible markets for its highly sought-after collectible shoes, some of which have gone for seven figures on the resale market. RKTFT created the same dynamic in the metaverse by using NFTs to represent digital shoe designs. So it was no surprise when Nike acquired RKTFT in 2021 — but the shoe manufacturer wasn’t only interested in cornering a digital market. Instead, it wanted a way to enrich relationships with both sets of customers.
Five months after its RKTFT acquisition, Nike filed for a series of trademarks relating to a self-contained online community. These filings include cryptocurrency wallet software, a digital asset marketplace, electronic bulletin boards, online scavenger hunts, and other features that can resonate with long-term fans. A new customer entering this ecosystem after buying an NFT or collectible shoe will quickly find multiple reasons to stay connected, even if just for the prospect of additional crypto rewards — effectively bridging the potential gap between those who prefer real-world shoe collections and enthusiastic NFT adopters.
Earning brand loyalty is far more complicated than simply selling a collectible-backed NFT to customers. And yet, Adidas, Fanzone, Gap, and Nike all found unique approaches to deepen their relationships with target audiences. If brand marketers use these strategies as potential frameworks for their own projects, they won’t just sell NFTs — they’ll build thriving brand communities.
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