The integration of NFTs into businesses has sparked a revolution in customer engagement and loyalty. Big brands like Taco Bell, Nike, and Yves Saint Laurent (YSL) have already embraced them as a part of their marketing strategy.
Beyond the fundamental NFT benefits, one of the most useful ways of engaging customers with NFTs has been redeemable NFTs — digital tokens that users can exchange for real-world items or unique experiences.
So, in this article, we'll specifically look at why brands should create redeemable NFT accessories that can be exchanged for physical items and how they can boost loyalty.
The Collezione Genesi is a unique 9-piece luxury NFT collection consisting of wearables and accessories from D&G. The collection was designed by Dominico Dolce and Stefano Gabbana and grants holders access to exclusive couture events in Italy. A select few of these NFTs can also be redeemed for their real-world counterpart and the original signed sketch from the founders.
The brand’s strategic move of offering physical items only for certain NFTs accentuates the scarcity and sense of exclusivity the customer gets from owning them. Adding the original sketch wasn’t an afterthought either as it’s a potential artifact of fashion history that will acquire cultural and monetary value over the years.
Providing such inclusions along with the real-world counterpart of the NFT elevates the perceived value of the item and creates an emotional connection between the brand and its patrons.
Gucci collaborated with Yuga Labs to create the “Otherside: Relics by Gucci” collection consisting of ape-themed NFT accessories that can be redeemed for their real-world counterpart. The first “relic” was a collection of 3,333 Koda Pendants and the drop sold more than half of the pendants only an hour into the release.
This unique offering appealed to both luxury fashion enthusiasts and the digital-native NFT community and generated significant buzz online. Also, the Koda Pendants being available only for 24 hours created a sense of urgency.
Both these factors drove high levels of interest and engagement in the collaboration and prompted immediate action from buyers.
PUMA, the global sports apparel company, ventured into the NFT world through a unique collaboration with NBA star LaMelo Ball and the NFT project Gutter Cat Gang. The result of this collaboration was the GutterMelo MB.03 project, a limited-edition sneaker drop that allowed customers to redeem their NFTs for actual physical sneakers.
The drop garnered a lot of attention and resulted in improved brand visibility as PUMA tapped into LaMelo's NBA fanbase and Gutter Cat Gang's digital community, which considerably expanded their customer base.
Absolut Vodka and Seletti, an Italian design company, are two brands known for their innovative spirit. They came together to create the "Seletti x Absolut Born To Mix3D" project, which consists of a collection of 2,500 NFTs that can be exchanged for a lamp resembling the Absolut Vodka bottle.
By offering a physical item, especially one as unique as a designer lamp, in exchange for an NFT, Absolut, and Seletti have provided a value proposition that stands out in the crowded NFT space. This expanded the community beyond just NFT aficionados and attracted collectors and design enthusiasts.
Additionally, NFT holders were also invited to an exclusive cocktail party in a futuristic club. This provided an opportunity for various community members to interact with each other and further solidified the sense of belonging.
Redeemable NFT accessories have opened up new avenues for brands to create additional revenue streams. The initial sale of NFTs itself creates a new revenue stream and if the brand sets up a royalty system, it can earn a fraction of the sales each time the NFT is resold in the secondary market.
Plus, the redeemable aspect of the NFT can itself create an additional revenue stream as it enables brands to upsell or cross-sell other related products during the redemption time.
Redeemable NFT accessories help brands boost loyalty by offering a unique blend of exclusivity, engagement, and tangible value. So, if you’re looking to create redeemable NFTs for your business, Dibbs can help.
We take care of everything from the imaging process to the tokenization and store the physical accessories securely in a vault until they’re ready to be redeemed. Once your customer has initiated the redemption process, we take care of the logistics and securely deliver the real-world counterpart to your customer. To learn more about how Dibbs can help your business create redeemable NFT accessories, schedule a demo with us today.