How Brands Are Revolutionizing Consumer Engagement With NFTs

Large companies are guilty of the bandwagon effect jumping into NFT (non-fungible token) hype, but failing to accurately leverage the ideology behind these trendy projects. The success of an NFT depends not on the minimum price, but on the community in which it is grown. Inspired by the gaming community, learn how brands can use NFTs as a basic tool to connect with consumers, drive engagement and increase loyalty.

Branding game

Asia is at the forefront of NFTs, as the region explains One-third of $ 22 billion in world trade..This is not surprising Eighty-two percent of Southeast Asia’s urban online population is gamersGiven that expensive consoles and computers that were once out of reach are now being replaced by everyday mobile devices.

A hobby that was once avoided is a lucrative industry where even luxury brands have begun to join forces with the virtual world.The world game market $ 340 billion by 2027..

Consumed by Over 3 billion gamers worldwide (More than 40% of the world’s population), the community is what brands want and uses entertainment to build brand equity within the virtual world. The gaming community is now made up of individuals with different personalities and niches, and brands are looking for valuable opportunities to connect with a group of fresh audiences.

The next evolution of rewards

Video games are designed to be addictive because the brain is constantly chasing joy and encouraging continued involvement. Traditionally, players played for a fee, but blockchain games have moved to a play-to-earning model by integrating crypto tokens and NFTs as a rewarding mechanism for gamers. for example, UniX Is a community-centric platform that allows gamers to monetize and earn scholarships through virtual games.

Many brands started by designing avatar skins as an entry point, but these virtual collectibles offered no real value other than in-game skills or simple aesthetics. You can’t transfer cosmetic skins to other virtual environments or give them transaction value. As a result, developers have evolved into blockchain games where consumers can own assets as NFTs.

Luxury brand Louis Vuitton is actively involved in game collaboration and recently launched its own mobile game that rewards collectable NFTs. The move to in-game NFTs is gaining in popularity as users can now own digital assets as a rare collection and have the opportunity to turn around for profit.

Whereas users used to play for a fee and provide data for free, the new generation of gameplay industry has given players ownership and rewarded for the time and engagement spent in the game. increase. Today, consumers are seeking the price of their loyalty and trying to win the title of brand ambassador for their favorite brand.

Communities to connect

NFTs have more value than just a monetization opportunity because they relate the basic nature to the community behind the project. “The key is to create a strong brand that can be determined by marketing, so the question is how is it perceived by the community on social media platforms and who invested early in the project? Are there any plans to raise awareness of mass recruitment? ”We share Mirko Basil Doorger, CEO and co-founder of UniX.

The social elements of the game meet the human need to be part of a social group and promote social interaction, cooperation, and competition. Knowledge sharing is actively practiced among gamers, from strategy to everyday life discussions. This is also what marketers call word-of-mouth.

that’s all eSports revenue of $ 637 million Although coming from sponsorship, consumers are knowledgeable and able to identify marketing tactics. They support genuine engagement, and by winning this community, you can build brand affinity, customer loyalty, and ultimately increase sales. Just as retailers want shoppers to stay in stores longer, brands can increase engagement time and acquire users in-game or in the Metaverse as a form of community building and marketing.

Incentives for users with rewards release dopamine in the brain. This is a sense of joy that promotes longer engagement times, like shopping. Games and eSports have become a major part of today’s mainstream culture. eSports ratings are higher than the NBABecause the audience is investing in the gameplay of others as a form of social interaction.Popular streaming platform in Asia Vera EsportsTencent’s official partner of Riot Games and Valorant saw 1 million viewers during peak hours during the tournament. The tremendous growth of eSports and the size of its audience is unmatched by other communities where brands need to be more than just product placements and get involved at the grassroots level.

Blockchain social status

L’Dezen Payal Shah is one of the first Hong Kong fine jewelry companies to launch a pair of digital physical wearables with digital twins on the NFT marketplace. A physical pair of 18K gold earrings with 2.27 carat diamonds was insured and shipped to the winning bidder. This is also digitally pasted on the profile picture (PFP). Smart contracts tied to NFT sales show how luxury spaces use blockchain as a decentralized method to verify reliability, as opposed to traditional certification provided by brands when buying luxury goods. is showing. Both assets are valued independently of each other and can be sold separately in tandem or at any time.

Brands are also using NFTs as their digital membership pass to curate their own offline experience to facilitate engagement with online creeks. DNRR Is an NFT platform that allows owners to visit the Metaverse Dining Club and attend real-life events at some of the world’s trendiest restaurants.Another Hong Kong-based luxury market Cut You can also use your membership to unlock exclusive product drops and insider events within the fashion community.

Although NFTs are created with persistent records and authenticated with private addresses, these digital assets are still vulnerable to counterfeiting. TruthCompanies known for their patented Proof of View technology can identify fake NFTs through blockchain-based solutions. “Owners are not only genuine about the NFTs they are buying, but also the sellers they are buying and the markets they are using,” explains RJ Mark, CEO of Verasity. To eliminate the risk of fraud, the method of creating, moving, modifying, and storing the NFT verifies the owner with a transparent and immutable record of the NFT over its lifetime.

However, it may not be as different to the naked eye as buying a high quality replica and buying a real designer’s work. When it comes to luxury purchases, the motivation for buying a Hermes Birkin or the boring Ape Yacht Club NFT is not because of its functional aspects, but because of its social status where most of its value exists. What really matters to the owner is the flexibility of wealth that will be associated with the brand at the time of purchase. The prices of these assets in digital form are often valued at a higher value, as virtual ownership allows consumers to show off their collections and anyone can see them on a global stage.

Important point

Metaverse isn’t designed as a separate retail channel or marketing campaign, but as a way to engage with consumers and empower them to own and direct their beloved brands. Encouraging user-created content and rewarding brand equity and loyal followers is the future of loyalty programs that drive brand advocacy.

The elite community and monopoly ideas behind each NFT project drive the level of value and engagement between owners and aspiring owners. Recognizing and connecting with people who have access to the community is a valuable experience that goes beyond jpeg’s expensive tags. NFTs are used as a storytelling component to convey brand value through a new era of decentralized networks and build a strong support community through human and social connections.