How NFTs can change the game for brand-consumer engagement

NFTs were all the rage when they came to public attention. Never mind that a global populace coming out of Covid confinement was looking for an acronym that didn’t depress them. Some people made some purchase decisions that would go on to define the swift blow-up and swifter bang of the NFT bubble.

The echoes of that pop can still be heard as brands, marketers, and merchants are leveraging the token, based on blockchain technology, to new non-fungible heights. And the restructuring of that argument has made them en vogue.

Pop Science

Kirthiga Reddy, formerly of Meta and Softbank, knows what’s up with her new company Virtualness, which delves heavily into blockchain technology to deliver NFTs in the form of digital commemoratives for awards. These come with their unique perks and benefits.

Mumbai Tech Week, held in February 2024 at the Jio World Centre, brought together tech enthusiasts, industry leaders, and startups from 46 companies for a tech extravaganza, wherein the event introduced innovative ways to engage participants in collaboration with Virtualness. This collaboration leveraged blockchain technology to offer digital commemoratives, aka NFTs, enhancing traditional keepsakes and broadening the reach of Mumbai's tech community internationally.

The digital commemoratives transcended physical mementoes by offering lasting value and exclusive content. People who claimed the digital commemorative gained access to a series of insightful videos from industry stalwarts like Harsh Jain of Dream 11, Aakrit Vaish of Haptik, Naiyya Saggi of Good Glamm Group, Beerud Sheth of Gupshup, Neeraj Roy of Hungama Digital Media, Vivek Khermani of Quantiphi, Vishwas Patel of Infibeam Avenues Limited, and Anand Jain of CleverTap. Not just that, three lucky winners stood a chance to meet and get personal insights from one of these high-profile executives.

Harsh Jain of Dream11 shared, "Mumbai is one of the epicentres of startup talent in India and Mumbai Tech Week celebrated this vibrant and growing tech ecosystem. Our collaboration with Virtualness allowed us to expand our reach to far corners of India and across the globe, turning Mumbai Tech Week into a truly international event."

Siddhant Mazumdar, Head – India, Mediabrands Content Studio, says that while the NFT market has cooled from the heady early days, its potential can still be strong as long as there is genuine value in the thing the NFT is for. “The problem was people started offering NFTs for random things that have no real value even as art,” he says, echoing Reddy.

“NFTs can offer unique value by providing verifiable ownership and rarity, which can enhance brand-consumer engagement. Brands can use NFTs for exclusive content, limited-edition products, and digital collectibles, fostering deeper connections with consumers,” he says.

For instance, Nike’s Cryptokicks, digital sneakers tied to physical products, and Taco Bell’s NFT art, which sold out quickly, illustrate innovative uses. NFTs can also enhance loyalty programs by rewarding dedicated customers with unique digital assets (think Virtualness’s digital awards).

“In the aftermath of the NFT bubble, I'd say NFTs were ahead of their time. They did manage to capture significant cultural relevance, giving us a peek into the future. But imagine a world where tech like Apple's Vision Pro becomes as common as PlayStations or smartphones. We might see NFTs making a big comeback, especially when the Roblox generation grows up and starts spending,” says Lalson Ngaihte, Group Creative Director (Hub), Media.Monks India.

Dhruv Verma, Founder and CEO of Thriwe, says the core blockchain technology reduces the security burden of collecting and storing customers personally identifiable information, at the same time enables progressive insights into customer's patterns and preferences.

Indeed, one of the exciting aspects of NFTs is their tradability and transferability — giving freedom, flexibility and value to the receivers of these rewards — and extend the timeline of consumers’ engagement with the brand. Advanced personalisation could be achieved using NFTs, where the end reward could be better customised and personalised basis the varied demographics.

Beyond the Bubble

As Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media, points out, the key lies in verifiable digital ownership – a game-changer for building exclusive brand communities. “Imagine fans holding NFTs that unlock limited-edition digital artwork or behind-the-scenes content vaults. This exclusivity fosters a unique sense of community, a powerful tool for brands in today's digital age.”

For engaging high net worth customers, this is a game-changer - rather than a common pool of rewards, the customers are offered personalised and unique digital assets which can be held by them with pleasure for extended duration. The consumers feel more secured and in control of their personal data, thereby enhancing their trust on the brand.

Samir Asher, Co-Founder and COO at Tonic Worldwide says that in their capacity as a unique technology, NFTs do represent unique opportunities for brands. “A good example could be when Starbucks built a loyalty program around NFTs in 2022, called Starbucks Odyssey. With Starbucks Odyssey, they offered Starbucks Rewards members and Starbucks Partners (employees) a chance to earn and purchase digital collectible assets (NFTS). Owners of these exclusive Starbucks-themed NFTs would unlock access to better loyalty benefits and immersive coffee experiences.”

But the possibilities extend beyond static assets. NFTs can also be the key to gamifying loyalty programmes. Rewarding customer engagement with exclusive NFT badges or discounts, could create a truly interactive brand experience.

“They are a powerful tool in the brand engagement toolbox. By leveraging exclusive ownership and fostering a sense of community, brands can build stronger connections with their audience,” says Kothari.

According to Mazumdar, “These strategies not only create new revenue streams but also strengthen brand loyalty by offering unique, memorable experiences. Thus, despite the market correction, NFTs can continue to provide valuable opportunities for brands to innovate and engage.”

Experts say that for brands to truly make the most out of NFTs, they should integrate them into broader, long-term strategies rather than using them as standalone or one-off campaign tools.

 “Use NFTs to unlock special content over longer campaigns; for example, NFTs could give access to unique materials or experiences throughout a year-long campaign, even as large companies can create NFTs across various brands,” says Ngaihte.

Verma adds, “For engaging high net worth customers, this is a game-changer - rather than a common pool of rewards, the customers are offered personalised and unique digital assets which can be held by them with pleasure for extended duration. The consumers feel more secured and in control of their personal data, thereby enhancing their trust on the brand.”

The technology behind NFTs offers so much more. NFTs aren't merely digital novelties; they can be powerful tools for verification and certification, enable smart contracts, and support digital identity solutions. When utilized beyond gimmicks, they can provide substantial value.