NFT seems to be everywhere. NFL, rapper Snoop Dogg, Burger King, Shakira, and even “side eyed Chloe” memes have all joined the NFT wave, and almost no people who have joined the NFT field don’t understand CryptoKitty. In fact, NFT is not only suitable for celebrities and billion-dollar companies, it can also benefit small businesses.
Before discussing how to use NFT, let us take some time to understand what it is?
What is NFT anyway?
NFT is a digital asset, which represents a series of virtual and real things, which cannot be replaced or exchanged with fakes. They are created on a blockchain that can be traced back to the original data, which can be artworks, photos, music, videos, collectibles, souvenirs, contracts, coupons, authenticity certificates, identity documents, health records, and so on.
Until 2017, with the launch of CrypoKitties and CryptoPunks , NFT began to attract attention. CrypoKitties and CryptoPunks are a collection of different digital transaction cards. According to data from nonfugible.com, the total sales of NFT in 2018 exceeded US$40 million. By the end of 2020, the annual NFT adoption rate and sales continued to grow, gradually becoming the mainstream.
Thanks to the launch of NBA Top Shot, NFT’s annual sales reached 338 million US dollars. At this time, the single selling price of some NFTs has exceeded US$50 million. After the user purchases the NFT, it can be stored online or offline in a digital wallet for safekeeping.
The continued growth of NFT
According to the “NFT 2021 Second Quarter Report”, the three-month window period in the second quarter of 2021 broke the NFT industry record. The nonfungible.com report shows that in the first quarter of 2021, the total amount of NFT transactions exceeded US$500 million. The second quarter soared by 40% to more than 700 million U.S. dollars.
The number of active wallets in the second quarter also set a new historical record, exceeding 175,000, while NFT showed strong price growth. In addition, the number of users is also increasing. The number of buyers has increased by more than 38%, and the number of sellers has increased by more than 25%. This means that the adoption rate of NFT is getting higher and higher.
The important reason why NFTs are increasingly adopted and sales are increasing is that humans like to collect things, and NFTs are programmed to be scarce. Basic economic theory states that the scarcity of almost anything in demand will drive up its price.
Other attributes of NFT are:
- Digital persistence: As long as the blockchains they build continue to exist, they will continue to exist.
- Unforgeable: Anyone can verify its authenticity by checking the blockchain.
- Provable ownership: If the NFT is programmed for resale, it can be transferred.
Use NFT to promote the business of small companies
All this shows that small businesses have an opportunity to take advantage of the current NFT boom. We summarized five ways small companies can adopt NFTs to develop their businesses and retain customers.
Anti-counterfeiting issuance of one-time promotional tools: coupons, promotional discounts, event tickets, BOGO discounts, etc. Blockchain codes or QR codes, as non-copyable, tamper-proof, accessible discount assets, have a wide range of use cases.
Establish a customer loyalty program: Consider using a digital NFT loyalty card. After customers register, they will download it to their mobile device. Whenever they visit your business, they scan the loyalty NFT code to accumulate loyalty points. Under certain thresholds, you can push rewards, discounts, or blockchain tokens for use in stores.
Charity marketing and charity support: After the exodus from the United States, NFT was used to raise funds to help protect the rights of Afghan women. Similar programs can also be replicated at the community, town, city, or state level to stimulate geographic similarity marketing or support local charities.
Raise funds for business expansion: If the business is considering opening new outlets or expanding the existing scale. NFT may be a low-cost financing alternative compared to traditional bank loans. We can think of it as a Kickstarter that can prevent scams. Users participating in the crowdfunding can track the money and release it only when the smart contract regulations established at the beginning of the event are met.
Carrying out sweepstakes or gamification promotion activities: The running cost of this kind of marketing activities may be very high, usually only meaningful to large enterprises, such as McDonald’s Monopoly game, publishers’ clearing house sweepstakes marketing. With a little creativity, NFT can bring the possibility of highly participating in gamification marketing for small businesses. For example, the chamber of commerce can launch a digital NFT treasure hunt involving dozens of local businesses to attract customer traffic to every location. In this regard, the potential of NFT is only limited by imagination.
Start the NFT journey
If small business owners are proficient in Internet programming or have the opportunity to contact some college interns, they can DIY your NFT by watching some free articles and video resources. If you do not have the time, interest or patience to complete all of this. You can hire a freelancer to complete the entire project based on your creativity.
No matter where small businesses start, you can try NFT. This is almost no loss for these companies, but there are some potential benefits. The popularity of NFT is still on the rise.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-should-nft-non-decreasing-enterprises-participate/
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