February 16, 2023
By Murtuza Merchant
NFTs, or non-fungible tokens, have sparked various opinions and debates since their emergence. Some view NFTs as a passing fad, others see them solely as a form of financial investment, while some believe they represent a vehicle for creative expression.
The Diverse Perspectives on NFTs
However, one thing is clear: with every remarkable innovation comes scepticism and criticism. In the early days of electricity, people doubted its potential, claiming it would cause chaos and result in thousands of deaths on the streets. But today, we can all agree that electricity has revolutionized our world.
Recently, many industries – both traditional and Web3 – have embraced NFTs and integrated them into their business models. Initially, these companies often witness a high influx of customers but struggle to retain them due to their inability to offer tangible value.
The Importance of High-Quality NFT Utilities for Long-Term Success
It’s important for businesses to recognize that customers may view NFTs as nothing more than overpriced JPEGs or financial investments. Offering little value will not retain customers, as they will always desire more for the product they are receiving.
Therefore, companies must focus on delivering high-quality NFT utilities to ensure long-term success.
Although some companies are already implementing this approach, the key is to provide exceptional NFT utilities. Let’s explore five ways to create high-quality NFT utilities that can increase customer retention by tenfold.
Strategy #1: Integrate NFTs into Solutions for Societal Problems
IntegrateSun is a prime example of a company that uses NFTs to solve a societal problem. The company’s renewable energy project incorporates carbon credits into NFTs to reduce carbon footprints and combat climate change. Carbon credit NFTs are tradeable, and investors can purchase them as long-term investments.
Strategy #2: Keep Holders Engaged with NFTs in P2E Games
Developing a play-to-earn (P2E) game with NFT in-game assets, such as avatars, skins, cosmetics, or pets, is an excellent way to keep customers engaged. The gaming community is vast, and providing them with novel tradeable in-game assets is likely to attract and retain them.
Strategy #3: Offer Freebies and Discounts with NFT Utilities
Everyone loves freebies, promo codes, and discounts, so why not incorporate them into your NFT projects? Providing holders with the opportunity to obtain free or discounted items while keeping them engaged is a simple yet effective way to add value and increase customer loyalty.
Strategy #4: Host Exclusive Lifestyle Events for NFT Holders
NFTs can provide holders with exclusive access to special events that others cannot attend. For example, the Bored Ape Yacht Club (BAYC) hosts an annual event open exclusively to its holders. This generates excitement, enhances the community, and strengthens loyalty.
Strategy #5: Add Physical Products as NFT Utility Options
By adding a tangible item to your utility list for loyal holders, you can allow them to exchange their NFT for a specific product in the real world.
Businesses seeking to improve customer retention should consider incorporating these ideas. They can add lasting value to their products and services, resulting in higher customer satisfaction and loyalty.
The Endless Possibilities of NFT Utilities for Business Growth
In conclusion, the possibilities for NFT utilities are endless, and creativity can generate exceptional value. The most successful NFT utility projects will often feature multiple mechanisms to create greater value for their holders.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.
