The Case for Businesses To Create Their Own NFT Marketplace

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NFTs are all the rage and will remain the next marketing frontier for building brand loyalty, especially as organizations understand they aren’t just for A-list celebrities, artists, and musicians. The market is currently white-hot, but as the hype for NFTs settles down, we’ll see organizations utilize them as a primary marketing channel for interacting with customers. The NFT marketplace is social media 2.0, and it’s a stone’s throw from exploding.

Traditionally, marketing channels have been one-way communications conduits, such as email marketing, text promotions, banner ads, etc. This has shifted over the years to create more interactions between consumers and brands through social media networks and chatbots. Instant feedback and communication are also more common today, especially as apps like Uber Eats and Lyft build brand recognition through necessity and unmatched convenience. However, these channels have promoted customer service more so than loyalty. 

See More: 3 Strategies to Seamlessly Manage Your Campaigns and Channels Amid Commerce Anarchy 

Redefining Customer Loyalty

To thrive in this new era, companies must abandon one-dimensional thinking and go beyond the sheer product or service they provide. By creating their own marketplace, organizations can use NFTs to supercharge their marketing and engage users dynamically and automatically. Given their unique and novel nature, NFTs can be used as a strategic tool for strengthening relationships with customers and revamping antiquated customer loyalty programs. 

In today’s marketplace, more than one-third (38%) of consumers surveyed aren’t interested in joining loyalty programs, according to recent data compiled by CFI Group in conjunction with Radial.Opens a new window And, when they do engage, they are usually influenced by the rewards they receive like expedited delivery or flexible return and exchange rules, 

By reconstructing customer loyalty and rewards programs with NFTs, brands can offer more than just traditional benefits. For example, the more the customer buys, the more valuable an NFT becomes. 

Let’s use Starbucks’ rewards as a potential use case. Their current rewards system has a customer earning stars based on transaction value. These stars can then be redeemed for discounts on various product offerings. If Starbucks were to go a step further and launch its own NFT marketplace, these stars could be used to redeem collectible NFTs (think Starbucks city mugs for the digital world). 

As the customer spends more, the NFT can become more valuable, turning into a limited-edition version. These rare NFTs can then be sold or purchased by users on a secondary market, essentially serving as ‘free’ advertising for the brand. And let’s face it — to get to that level, you are showcasing your loyalty to the world. 

Additionally, NFTs can be used as an omnichannel approach, melding the in-store and digital experiences. For example, a company like Sephora could work with various beauty lines to issue a ‘free sample NFT’ on its marketplace. This can then be redeemed at any location, driving in-store traffic. It’s experiential physical marketing meeting digital to strengthen brand affinity. 

Providing Additional Revenue Streams

Outside of omnichannel marketing opportunities, brands can unlock new revenue streams with NFTs. This model works especially well for businesses with unused historical footage like sports teams or news outlets. 

Recently, the Associated Press announced the launch of its own NFT marketplaceOpens a new window for photojournalism. The benefits of this move are abundant:

  • In a time where publishers are hard-pressed for revenue, selling NFTs of their content provides an additional revenue stream outside of advertising and subscriptions;
  • On-staff photojournalists can receive additional income and recognition for their work. Profits from NFTs are easily split between several parties, making it easy for all involved to profit; and 
  • The outlet has an abundance of historical content, which can now be shared and monetized in new ways. 

The case for NFTs to go mainstream is clear: they are highly shareable, provide great branding opportunities and generate additional revenue opportunities. 

The Case for Owning Your Own Marketplace

Though the benefits of NFTS are numerous and some brands are already striking gold, many organizations grapple with the decision to utilize open marketplaces or create their own.

Open marketplaces like OpenSea provide an audience and the ability to mint NFTs quickly, but they also come with some downsides. Creating your own marketplace, on the other hand, offers numerous benefits, particularly when it comes to connecting with your user base. 

Once created, your own NFT marketplace enables you to mint NFTs quickly. It also allows you to gain access to a treasure trove of data that can be used for remarketing purposes and omnichannel experiences (much akin to the Sephora example above). When you possess this data within your own marketplace, you own the user experience from start to finish. 

However, on an open marketplace, there’s potential for your user base to be diluted with other adjacent or competitor brands. In an era where attention spans are thin and brand loyalty wanes quickly, can you afford to have a user abandon your brand and buy another brand’s NFT on an open marketplace? 

See More: Endemic Marketing: 3 Ways To Build Strong Customer Relationships 

While the prospect of creating your own marketplace may seem daunting at first, the return on investment is far too powerful to ignore. Moreover, the process is being fast-tracked and simplified for many proprietary platforms. That’s because, rather than hiring staff internally to develop and build out the marketplace end-to-end, many brands are going the route of engaging white label partners instead. 

Significantly, the white label model helps brands circumvent the complexities and costs of setting up their own marketplace from scratch. It also allows them to avoid pitfalls and invest in tried-and-true technology, beginning with an expert-built turnkey solution that can be branded and customized as needed. 

With the right white label partner on the job, a brand’s proprietary platform can be up and running within 30 days. Once your first NFTs are minted, it’s free to create more and maintain your marketplace. 

The initial investment is time, and 30 days is a short time to create long-standing experiences for your customers that will pay off in many ways. 

Do you plan to create your own NFT marketplace? How do you think it will help you? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

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