The NFT ecosystem looks promising as more web2 brands enter the web3 space with collectibles and digital wearables. Recently, it was Dior and 7-Eleven that caught the attention of the masses with their phygital and digital collection respectively. But why are brands invested in NFTs?
NFTs create scarcity and exclusivity, and it’s easy to verify their authenticity and ownership. Also, it’s possible for NFTs to have special traits depending on their rarity. So, they have numerous applications in the real and digital worlds. That means brands can give away digital collectibles instead of freebies and discounts and create unique customer experiences along the way to improve retention and revenue.
Nike, a well-known sportswear brand and a long-time player in the NFT space, has made more than $185 million through its phygital and digital NFT sneakers. Luxury brands like Dolce and Gabbana and Tiffany & Co. weren't far behind — the former raked in $25.6 million in revenue from its NFT collection while the latter raked in $12.62 million, according to a Dune Analytics study.
These multi-million revenue figures prove that digital collectibles are a goldmine, and to stay ahead of the curve, businesses need to make them a part of their marketing strategy. However, launching a new collection is easier said than done.
This article outlines enterprise web2 brands that are using NFT collectibles as a marketing tool and what brands can learn from them.
Many brands are using NFT collectibles to monetize digital assets, tap into new revenue streams, and create innovative marketing campaigns that resonate with their audience.
By embracing NFTs, brands can leverage collaborations with artists, engage in gamification, and offer exclusive perks and benefits, enhancing customer loyalty and driving long-term engagement.
Integrating NFT collectibles into marketing strategies enables brands to harness the power of user-generated content, generate buzz, and boost awareness, leading to organic marketing and expanded customer reach.
Louis Vuitton
In 2021, Louis Vuitton launched “Louis The Game” as a part of its founder’s 200th birthday where players could embark on a journey and collect NFTs along the way. The interactive game was inspired by Vuitton’s journey and players who collected a certain number of free NFTs could qualify for a raffle and win one of the 10 NFTs featuring Vivienne, the game’s main character, in different outfits.
The NFT could then serve as a profile picture (PFP) and be transferred across virtual platforms and social media platforms. This NFT game enabled the brand to broaden its user base and get 2 million downloads for the following reasons:
- Louis Vuitton collaborated with the famous digital artist Beeple to create their NFTs. By associating themselves with the artist, the brand gained visibility and appeal from a new audience, which helped grow its customer base.
- Since players got the opportunity to collect and own virtual assets associated with the luxury brand, it fostered a sense of exclusivity and incentivized players to engage with the game.
- NFT owners shared their gaming experience and collectibles with their users and followers, which generated buzz and led to increased brand awareness and organic marketing.
Yves Saint Laurent (YSL)
Yves Saint Laurent (YSL) is no stranger to web3 or NFT collectibles — the brand has already built a community of 24,000 NFT Holders from its previous NFT projects.
This time, the brand went a step further to create a loyalty program based on NFT collectibles. To participate, customers had to purchase their Black Opium fragrance and complete a few enrollment steps. After the purchase was complete, the participants could claim NFTs which would allow the owner to benefit from the following utilities based on their rarity:
- The NFTs allow holders to be part of the YSL Beauté program membership, which offers rewards, benefits, and/or rebates on future purchases.
- They also provide access to exclusive content and events. For example, holders of certain NFTs will be able to access a private sale for a future NFT drop.
- Owners of the ultra-rare NFT will receive a customized YSLBeauty set.
If the holder mints a rare NFT, they get a YSL beauty set containing the brand’s products in addition to these utilities.
This is YSL’s first NFT project that's geared toward boosting loyalty, and here are some ways the brand will benefit from it:
- The program incentivizes users to share their personal data which enables the brand to collect zero-party data and accurately track user behavior and preferences.
- YSL’s NFTs grant its customers access to exclusive events and experiences not available through traditional loyalty programs. This improves retention rates as it encourages customers to make frequent purchases from the brand.
Mercedes Benz
Mercedes Benz has forayed into the web3 space with the launch of its digital subsidiary, Mercedes Benz NXT. The organization recently launched the Maschine generative art collection consisting of 1000 NFTs in collaboration with German artist Harm van den Dorpel.
This limited edition NFT collection is part of a bigger initiative that will highlight the brand's story and unlock more exclusive experiences for the brand’s customers in the future.
As such, the NFTs only serve as a collector’s item but they benefit the brand in the long term in the following ways:
- Mercedes' collectible cars have high value and demand, and owning one is seen as a status symbol within the collector's circle. The same goes for their NFTs. Since they’re collector’s items, their value will go up and the brand will continue earning ongoing revenue in the future.
- By using NFTs, Mercedes NXT is creating a coherent brand story and showcasing its history in a way that resonates with its audience. This new initiative helps them stand out in a crowded market and builds more brand recognition.
Slim Jim
Slim Jim, the famous snacking brand, recently offered fans 10,000 free NFTs called “GigaJims” on a first-come, first-served basis to announce their entry into the web3 space. These NFTs will function as a digital membership card and give fans access to physical and digital world experiences and exclusive perks and benefits in the Metaverse.
The brand will also have its own digital currency called S.A.U.C.E, which will allow holders to evolve their NFTs in rarity over time. The company said in a press release that its approach is inspired by popular video game mechanics including customizability, collectibility, and competition. So, NFT holders can look forward to more NFT utilities in the future.
That being said, let's look at how the brand benefited from using NFTs:
- Slim Jim has added an element of gamification to enable NFT holders to enhance their NFTs. This will make brand interactions fun and engaging for the customers and incentivize them to spend more time on their platform, which in turn will improve retention.
- The initial NFTs were given away for free to acquire consumers. But it’s possible for Slim Jim to create monetization opportunities inside of the experiences they’ve set up in the Metaverse.
Launch Your Digital Collectibles with Dibbs
Whether it's through interactive games, generative art collections, or gamified experiences, NFTs offer brands a powerful tool to stand out in a crowded market and build long-lasting connections with their customers.
As the NFT market continues to grow, it's clear that integrating NFT collectibles into marketing strategies is a trend worth exploring.
Dibbs helps you take the collectible experience one step further by enabling you to tokenize your real-world assets and creating a “digital twin.” This enhances the value of the item in addition to unlocking unique experiences for them.
To learn how your brand can get started with creating digital collectibles for your brand, schedule a demo with us and we’ll get in touch with you shortly.
