So you’ve heard about NFTs.
NFTs have taken the world by storm. If we're to leanr anything it's that NFTs have build some of the stickiest communities in existence. Who knew that a series of ape images would build one of the strongest networks of high net worth individuals in the world and be the ticket to many impressive parties with guests such as Eminem.
I think we all want to get in on this action. But before we jump in and create a collection, we recommend considering a few key things to avoid common mistakes. So let's dive in.
1. Focusing on a 'unique' drop
This may have been a great strategy when we were in 2021 and amongst all the NFT hype. But now we need to ground ourselves and truly think about the value being created.
Now of course when any brand launches something novel, people will engage. But if we want to win in web3 we need to build a lasting community.
Yes that means we need to invest more time. But... when you get to the core of what NFTs really do you'll see that they are much more than art. They bring people together through common tastes and shared values.
Instead of thinking about that 'one hit collection' you can offer an audience. We think the right question to ask is 'how can we bring people together in new ways and allow them to get closer to my brand and service'.
Then we can use art to tell this story and bring people together in new ways that weren't previously possible.
2. Overlooking adoption
In 2021 we saw a huge rush in NFT adoption. It's easy to get overly excited about this and lose sight of the facts that 25% of U.S. adults are familiar with NFTs. Moreover only 7% are active users (Forbes).
So we have a big choice, we can build and offer a new solution for this small market and attract the early adopters, or the younger generations. OR we can start helping everyone use this.
We actually hear a lot of brands talking about launching NFTs to target GenZ users. The problem is that this is still a very small population.
This is a flawed strategy because with this attitude we've already imposed a ceiling on what customers can engage. So if we're doing this for loyalty why not consider 'how can we offer solutions for all our customers to enjoy'.
When we dig in, we might actually discover that if we're strategic and add some real value then a lot more of our audience will want to be a part of what we're doing.
3. Blindly following other brands
One thing we see a lot of businesses and brands looking over the fence at their competitors and adopting the same strategy to enter the market and avoid missing out on the wave, or being left behind.
Although this mitigates the risk of something going wrong and tarnishing brand equity (which is an important consideration). It's by definition, not thinking about their community and customers they want to connect with which is the whole point of this new form of marketing.
Instead we want to ask 'how can we connect with our customers more and make them closer allies by sharing some of the unique value our brand has that we can give to them.
It all comes down to thinking long term, making something that a number of your customers feel confident adopting and taking an empathetic approach to building stronger connections to them.
We think this new channel of marketing holds the keys to the communities of the future and builds brand ambassadors more effectively than anything we've seen in the last couple of decades. Our biggest word of advice is to be strategic and seek to understand the value you're trying to make before pulling the trigger.