What utility can traditional brands offer to their NFT holders? Here are 11 examples from traditional brands👇
If you are a traditional brand thinking about entering the web3 space – defining a MEANINGFUL value (utility) for your community and token holders is one of the key steps. Here are 11 examples of physical and digital forms of utility to take inspiration from:
Physical utility
🟠Physical product – free or exclusive line-up (adidas free merch or Nike/RTFKT exclusive collection)
🟠Physical events – i.e. access to a concert of Leon Bridges for Wrangler token holders
🟠Physical experience – i.e. 4-day experience to explore the hidden gems of Milan by DOLCE&GABBANA for a select number of rare token holders
Digital utility
🟣 Brands’ digital product – i.e. TIME magazine digital subscription for token holders
🟣 Art – a collaboration with a notable artist on the design of the NFT can be a utility on its own (i.e. Drift x TIME – people get to own a piece from an artist which otherwise may be too expensive to own)
🟣 Digital events and experiences – exclusive for token holders with token-gated access
🟣 Digital assets – Avatars (i.e. Lacoste and its free avatar for holders of their genesis token); Wearables (i.e. The Coca-Cola Company – bubble jacket wearable for Decentraland); Collectibles (i.e. Australian Open and their Art Ball NFT); Other tokens – crypto / NFTs
Physical / Digital utility
🔵 Loyalty – token-gated access to tailored discounts, promotions, and offers (i.e. Balmain NFT membership and loyalty program)
🔵 Community – opportunity for holders to connect and for closer interaction with the brand and participation in decision-making on the future direction of the project (i.e. Lacoste let the community decide on the creative direction of its avatar project)
🔵 Partnerships – exclusive access to other brands’ / projects’ digital or physical goods and experiences (i.e. Gucci x 10KTF collaboration)
🔵 Supporting good cause – using part of the profits to give back (i.e. NYX Professional Makeup and its avatar sale of which 100% proceeds went to charity)
Here are some basic rules for defining utility:
✅ Make it meaningful for your holders and relevant to your brand
✅ Underpromise and overdeliver – surprise your community with more than what was promised
✅ Listen to your community – ask them what they would like to see from your brand and how they would like to participate
✅ Keep it open – hint on future utilities in the works
Is your brand thinking about entering Web3 space and using NFT’s in an authentic and meaningful way? Get in touch! We are here to help.
by Ondrey T.