For FMCG brands, NFTs provide a way to reach digital-native consumers in their own space and to revitalize products and experiences that younger consumers no longer find engaging, creating higher engagement and relevancy with a new generation. In addition, NFTs enable brands to provide these same digital-native consumers with real-world utility by bringing everything the consumers want onto the blockchain.
Because most FMCGs are sold through third-party outlets, there has never been a better time for an FMCG brand to develop a direct relationship with the consumer and cut out the middleman. This is what Blockchain technology is set to accomplish, and NFTs, as a product based on this ground-breaking technology, are precisely doing that. Allowing FMCG firms to enhance their brand identity while also making the end user a part owner of the brand. A tool by which brands bypass the platform-centric marketing world of Web2 and reclaim ownership of their digital consumer relationships.
NFTs have also brought about a revolution in the concept of digital ownership. We used to think of digital assets as files that could be copied and shared indefinitely. We may now think of NFTs as one-of-a-kind, scarce, and valuable items that can be verified and sold. Because NFTs are non-fungible by design, organizations can build unique and engaging experiences for their customers.
Whether you’re launching a new product, re-launching an old one, looking to reward customer behavior, or raising funds for a cause, why not utilize this new revolutionary marketing tool that will not only help achieve your end goal of increased sales, but in parallel raise brand identity and strengthen customer loyalty.
FMCG brands need to build a community for their brands and engage with their audience. Because of the increasingly competitive landscape for customer attention, it’s no longer enough to rely on traditional advertising or even social media content.
Many marketers have described it as the ADD economy, in which you only have a few seconds to get the customer’s attention and engage with them. Since you have so many brands competing for your customer’s focus, NFTs can serve as a unique way to engage with your brand’s audience as it opens a direct line of communication with them on which you can build a longer-term tie.
NFTs add immense utility to an FMCG brand’s marketing efforts in three areas of utility: as part of overall long-term brand building (marketing); for short-term promotional use (promotion); and to generate immediate awareness for a company and its brand. The key to each of these uses is to create an NFT that follows the principles outlined in the DSM framework in our “Marketing with NFTs” article.
Here’s how FMCG brands can utilize NFTs in their marketing!
Reward Customer Behaviour and Increase Customer Loyalty:
If a customer could receive an NFT for leaving a review or sharing a product on social media, this would incentivize customers to interact with the brand and promote its products online. It could also help to build customer loyalty and create a sense of community around the brand.
The use of NFTs as access tokens — in essence, tickets that entitle the holder to some sort of benefit — is already widespread among the brands that are penetrating the crypto-savvy community. Anywhere proof of ownership is required in the real world, NFTs are a natural choice because they make it easy to secure, store, use, and transfer that proof whenever necessary.
Everything from a coffee shop loyalty program to rewards from your favorite FMCG brand. The flexible nature of NFTs and their multi-faceted nature make them exceptionally useful to use as membership tokens for a loyalty program or even an NFT medal for your most loyal users. Also, consider what traditional loyalty systems already exist and what type of products can create loyalty, then digitize it through NFTs and enhance it through the multiple options that NFT tech provides. Brands can now think in this way “What would the world look like if we were rewarded for being good customers beyond coupons and discounts?”.
Why not existing loyalty programs? Well, traditional loyalty programs have lost their appeal, with 38% of consumers surveyed saying they aren't interested in joining loyalty programs, according to a study by CFI Group and Radial. According to the report, consumers are reluctant to join loyalty programs because they feel the value they offer is not worth the time, money, or effort of signing up. NFTs can clearly fix this issue, as they offer customers more options than simply using points, they reduce system-management costs, and the system is more secure and trustworthy due to blockchain technology. But perhaps more importantly, if the brand so wishes, there could be a market for exchanging these NFTs, giving holders more opportunities to benefit.
Brand Awareness and Charity
FMCG brand instore promotions do not secure future engagement with the customer that made the purchase. A promotion involving NFTs could really make a difference. By giving your customer an NFT, you secure future engagement with them without the need of the supermarket chain intermediary.
Organize a promotion in collaboration with a supermarket chain to raise awareness for your brand. You may add a cause to the promotion by linking it with a charity. For example, with the purchase of a men’s deodorant, you may contribute an amount to the Movember movement. For the sale of this deodorant during the month of November at the specific supermarket chain, customers receive an NFT. NFTs could be sent to customers via email through the loyalty program of the supermarket or be given a printed card with a QR code at the cash desk. By scanning the QR code, consumers can receive the NFT directly into their wallets.
Following the promotion, the brand can maintain communication with the customers by attaching several benefits to the NFTs. Those could be discount coupons, free products, memorabilia, invitations to events, or draws for bigger prizes. To raise awareness for the cause and give customers the opportunity to win prizes, the brand may invite customers to share their NFTs on social media with the hashtag "Men's health awareness supporter."