NFT is getting more and more attention from businesses. In this article, Twendee will introduce 4 smart ways to use NFTs to grow your business.
What is NFT?
NFT (short for non-fungible token) means that the token is non-fungible. This is a unit of data on the blockchain digital ledger. We can understand that it is a type of digital asset present on a blockchain. This blockchain acts as a ledger and ensures the authenticity of the owner’s assets.
Essentially, the NFT is just a non-replicable digital certificate of authenticity. It is used to represent ownership of an item. Due to the secure nature of blockchain technology, the record of ownership is always available, cannot be modified, and is definitely guaranteed.
Properties of NFT
Uniqueness: Each NFT has a unique characteristic that distinguishes it from other NFTs.
Scarcity: NFT is unique and cannot be replaced in any way. For example, the more unique and rare the items, the higher the value, such as paintings painted by famous artists: the Mona Lisa by Leonardo da Vinci, The Starry Night by Vincent van Gogh, etc.
Inseparability: a special feature of the NFT is that it cannot be divided in any way. Unlike cryptocurrencies, which can be broken down and traded as fractions, For example, 10 ETH can be divided into 10 parts, but with NFT, this is not possible. You cannot divide a picture into different parts.
Cannot be destroyed or copied: Each NFT is unique. All NFT data is kept on the blockchain through smart contracts and is completely independent of any other company.
Checkable: Thanks to the storage of ownership data on the blockchain, there is no need for a third party or expert to participate, so anyone can trace back to the work’s original creator.
Non-fungible tokens (NFTs) entered the zeitgeist last year with trading volume hitting $17 billion last year. NFTs allow one to demonstrate ownership of a unique digital asset. Businesses spanning various sectors like entertainment, fashion, and sports have begun NFTs. Recently, Starbucks announced plans to issue NFTs as part of its loyalty program later this year. Some other prominent companies which have issued their own NFTs include Nike, Adidas, Hasbro, Burger King, Taco Bell, and Louis Vuitton. Here are 3 different ways you can use NFTs to grow your business
Launch Clubs with NFT Membership Passes
Your business can launch member-exclusive clubs for your superfans and use NFTs to gate access. To incentivize membership, you could offer discounts and exclusive access to specific items or services. Your company benefits from the initial mint revenue and the royalties from secondary sales of the NFTs. The NFTs will also aid your marketing efforts as members are more able to showcase their membership on social media platforms.
Using NFTs as proof of membership also benefits members. Members are freed from the burden of remembering their passwords or carrying with them physical cards; instead, they can simply demonstrate membership through the NFT in their digital wallet. Additionally, owning an NFT gives members a sense of ownership and increases their engagement with the community.
While NFTs are digital assets, analog businesses can also use this strategy too. In 2021, Gary Vaynerchuk together with David Rodolitz, Josh Capon, and Conor Hanlon launched Flyfish Club, a private NFT-members-only restaurant. Flyfish Club NFT owners are given unlimited access to the New York City-based dining venue and other social experiences.
Sell NFT-based tickets
Your business could put tickets for events like live performances, conferences, and sporting events on the blockchain and sell them as NFTs. Using NFT-based tickets helps businesses reduce ticket forgery and scams. The verifiable authenticity of tickets also supports a secondary market for tickets. Research indicates the reliability of tickets encourages attendees to buy in advance; this translates to greater revenues for event organizers.
Billionaire Mark Cuban shared that the Dallas Mavericks are exploring how they can turn their tickets into NFTs. He explained that NFT-based tickets will allow consumers to resell tickets while also allowing them to make a royalty.
Ticketmaster, using Dapper Labs’ Flow blockchain, has already begun issuing tickets as NFTs for selected events, which would function as collectible memorabilia, but also as a shareable record of attendance. The ticketing giant in the pilot phase minted over five million NFTs, over a six-month period, some of which were automatically issued to attendees of specific events.
Create Loyalty Programs
Loyalty programs offered to customers based on purchase history are popular among businesses because they increase customer engagement and retention. Companies could use NFTs as a way of tracking prior purchases and rewarding customers. Unlike traditional loyalty programs, NFT-focused loyalty programs allow customers to better showcase their connections- with the brand better; this in turn helps promote the business.
Customers would benefit from NFT-backed loyalty programs because they are able to transfer or purchase them from others. These functions are typically not available with traditional loyalty programs where the data resides solely within the company’s database.
Burger King launched Royal Perks, an NFT-backed loyalty program. By scanning a QR code on every meal box, customers could receive one NFT game piece. Upon receiving 3 NFT game pieces, customers were programmatically granted a reward such as free Whooper sandwiches for a year, a call with celebrity artists, or a digital collectible NFT.
Starbucks has also forayed into the NFT space with its Starbucks Odyssey, an extension of its Starbucks Rewards program. Now, it connects not only members to the business, but to each other and even employees – offering a chance to engage in a series of activities and challenges centered around the brand and all things coffee. Participants are rewarded with digital collectible ‘journey stamps’ (NFTs). There is also the option to purchase limited edition stamps through a built-in marketplace. The stamps can be sold, traded, or exchanged for premium benefits like unique merchandise and invitations to exclusive events and trips.
Adopting NFTs in Your Business
Most businesses don’t need to build out their own NFTs from scratch. Instead, you can search for plug-and-play alternatives that allow them to create NFTs without any technical expertise. These solutions will be suitable for most businesses.
The possibilities with NFTs are endless and present a variety of new opportunities for businesses, small, emerging, or established. Club memberships, ticketing, and marketing are just some ways you can use to grow your business. With advancements in technology, more potential applications will emerge.
It’s always a good idea to pay attention to news and stories from the NFT space to see what’s new and how other people are using the technology in their businesses.
NFT application in tourism
The tourism industry has been greatly affected by the COVID-19 pandemic. Therefore, to support the recovery of the tourism industry, many projects and programs have been organized. At the webinar “Digital transformation for resilience” to discuss the tourism economy in the new period under the framework of the project to support tourism development after the pandemic by the Australia-ASEAN Council, the Ministry of Foreign Affairs Australian Trade and Transport sponsorship took place on November 24, 2022, and Mr. Truong Gia Khanh, Sales Director of DTS Group and Managing Director of DTS Foundation, Vietnam, shared with international friends about the form. NFT application in the tourism industry
According to Truong Gia Khanh, NFT is a type of digital asset present on a blockchain chain, that is, a record of transactions on networked computers. Blockchain acts as a shared ledger, allowing anyone to verify the authenticity of the NFT and its owner. Unlike other infinitely reproducible digital objects, each NFT has a unique digital signature, marking its uniqueness. With the development of digital today, NFT is applied to encrypt the value of works of art through verification of ownership. Artwork is converted into a digital asset file on the blockchain platform, making buying and selling easy and transparent. Applying NFT to works of art today is a revolution in the art industry because it helps artists protect the copyrights of their artwork.
In the future, NFT is predicted by experts to be widely used in all areas of life, from asset encryption to intellectual property rights, because of the permanence and uniqueness of the number chain. When applying NFT to the tourism industry, it will take advantage of advantages such as service promotion, virtual reality user experience business, and customer retention through after-service care. In fact, in 2021, the NFT art exhibition, in partnership with The Crypt Gallery, took place at the Dream Hollywood hotel, making it one of the first exhibitions of NFT art in a hotel environment. The exhibition is an opportunity for people to learn about and see the NFT up close without paying a fee. After the exhibition at Dream Hollywood, similar exhibitions gradually appeared in other big cities such as London, Chicago, et cetera.
Through the success of the exhibition at Dream Hollywood, the public has seen the novelty of NFT and related utilities. Vietnam’s tourism industry can apply NFT technology to modernize the features of booking, sharing, gifting, and reselling rooms to others thanks to a rich transaction platform. With the new generation NFT online travel service transaction platform based on blockchain technology, visitors can book cheap hotel rooms in many parts of the world and at the same time take the initiative in booking accommodation. exchange, resell, or give away NFT travel packages without going through an intermediary. The application of NFT to the tourism industry is intended to focus on tourists. Hotels, resorts, service companies, travel and tour operators, as well as investors who want to invest in the tourism and travel industry, will be directly involved.
Recently, a hotel in North and Central America is testing the launch of NFTs in the context of “no-show” status (booking but not showing up) and booking cancellations, which cause more than 100 million USD in losses in the US every year. Now, hotels are gradually turning to blockchain to find a way to cover that loss.
For example, a guest in the Dominican Republic partnered with the booking service Pinktada to create an NFT related to a hotel booking service called Roon – Night Tokens (RNT). Guests can purchase Pinktada RNTs for hotel reservations in the Caribbean, Mexico, San Francisco, Hawaii, and many more destinations. If a person decides to cancel a reservation, they can sell the RNT associated with that reservation to another potential guest. Pinktada allows the sale of RNT by market, as long as the transaction is made no later than two days prior to check-in.
Applying NFT technology to the tourism industry is not only a powerful transformation in order to expand the market but also to expand business opportunities, creating an additional customer approach for the industry.
There are many other smart ways to use NFTs to grow your business. Through this article, Twendee hopes you have the most details about NFTs to participate in this market.