Redeemable Digital Collectibles for Brands: The Ultimate Guide

Why Should Brands Create Redeemable Digital Collectibles?

 

Big brands like Starbucks, Nike, and Adidas are opting are adding redeemable digital collectibles to their offering for the following strategic reasons: 

 

Improves Customer Engagement

Customer engagement directly translates to increased revenue as it creates a strong emotional connection with the brand and encourages them to stay loyal and make repeat purchases. 

 

However, brands today can’t differentiate themselves easily and customers disengage due to the generic messages. This is why brands should use redeemable collectibles. Their redemption aspect can be used to offer unique experiences and rewards that are one of a kind and can't be replicated. 

 

For a fast-food outlet, offering redeemable digital collectibles can create a personalised and engaging customer experience. These collectibles could be tied to popular menu items or seasonal promotions, unlocking exclusive discounts or special menu options when redeemed. 

The gamified element encourages repeat visits, while the exclusivity of the rewards fosters customer engagement and loyalty and sets the brand apart in a competitive market.

 

Unlocks New Revenue Streams

In the past, brands primarily generated revenue through the initial sale of their products or services, without benefiting from any subsequent resale transactions. However, the advent of redeemable digital collectibles has introduced a new revenue model. 

 

Brands can now establish a royalty system for these digital assets, allowing them to earn a percentage of any secondary market sales. This not only provides an additional revenue stream but also extends the brand's earning potential beyond the initial sale of the collectible.

 

 

Provides Proof of Authenticity

Counterfeiting is a major problem for brands when it comes to physical goods. Redeemable digital collectibles help address this issue. 

 

Thanks to blockchain technology, each collectible’s entire history—from creation to any transfers of ownership—is publicly recorded. This makes it a counterfeit-proof certificate of ownership. 

 

Even if the collectible is "burnt," or made inaccessible by sending it to a special blockchain address, the record of its existence and ownership remains. This permanent, unchangeable history allows anyone to verify the item's authenticity and origin at any time. 

 

In this way, redeemable collectibles enhance consumer trust and protect businesses from the financial and reputational damage caused by counterfeiting.

 

Increases Brand Visibility

Redeemable collectibles, often in the form of NFTs, can significantly boost a brand's visibility in several ways. First, they create a sense of exclusivity, which makes them more appealing and shareable. 

 

When consumers own a limited-edition collectible tied to a brand, they are more likely to show it off on social media, thereby amplifying the brand's reach and attracting new potential customers.

 

Another way redeemable collectibles improve brand visibility is through collaborations. When brands collaborate with each other or other creators with a large audience to launch a collection, it generates a lot of buzz which enhances brand visibility. In addition to this, it also allows brands to tap into an existing and engaged audience and expand its customer base and market presence. 

 

Helps Build a Community 

Leveraging redeemable digital collectibles can be a game-changer for brands aiming to cultivate a dedicated and engaged community.

 

By offering collectibles that can be exchanged for special experiences, merchandise, or access to exclusive content, brands can create a sense of belonging and exclusivity. 

 

This not only enhances customer engagement but also fosters a community of brand advocates who are more likely to share their positive experiences and attract new members. 

 

All-in-all, redeemable digital collectibles enable the next generation of engagement, a strategic move for brands to build trust, elevate customer experience, and improve brand awareness.

 

 

 

Examples of Brands Creating Redeemable Digital Collectibles

 

Many big brands have already embraced redeemable digital collectibles as tools to engage customers in creative ways and design exciting experiences. Let's look at three such examples:

 

Robert Mondavi x Bernardaud NFT Collection

American winemaker, Robert Mondavi Winery came together with French luxury porcelain house Bernardaud to create the "MCMLXVI" collection. The special-edition digital collectibles could be redeemed for handcrafted porcelain bottles of wine with custom wine blends. What’s more, the digital collectibles themselves are unique pieces of generative art created by renowned designer Clay Heaton. 

 

Traditionally, wine and art have been two distinct avenues for collectors, each with its own set of rules, verification methods, and marketplaces. However, by integrating these two worlds through redeemable NFTs, the brands have created a novel hybrid market that appeals to a broader range of collectors.

 

Also, when a collectible is redeemed for a physical item, the blockchain serves as an immutable record of that item's provenance. This ensures that the physical item is genuine and matches the digital asset, providing collectors with a level of authenticity that is difficult to achieve through traditional means.

 

Cristóbal Balenciaga: To The Moon

Balenciaga, a renowned luxury fashion brand, created an exclusive collection of 8300 NFTs, consisting of never-before-seen designs from Cristóbal Balenciaga himself. These redeemable digital collectibles came with a variety of perks, including original hand-drawn designs, designer brand gift cards, and Balenciaga gear like wallets & bags.

 

The chance of owning a 70-year-old sketch by Cristobal Balenciaga himself appealed to both fashion enthusiasts and professionals. This conveyed the brand's heritage, value, and artistic legacy to customers, forging an emotional bond between the brand and consumers. 

 

The additional perks like brand merchandise and gift cards provided tangible value to customers, encouraging them to engage more actively with the brand.