Another perk of giving away NFTs through a social media competition — aside from the organic content it generates for the brand — is that it makes the process of acquiring an NFT much more accessible to the average consumer, says Roxanne Barretto Iyer, Clinique’s VP of global consumer engagement. “We thought a lot about how we bring consumers on this journey of innovation, because the barriers to innovation can be really high.”
Customers who win one of the NFTs can decide if they want to sell, trade or keep their NFT, but it was important to not assign it a monetary value, Iyer says. “Once we give it away to the consumer, it is theirs,” says Clinique chief information officer Michael Smith. The Clinique NFT is issued using Polygon, an interoperable scaling solution for Ethereum, which consumes less electricity than many other blockchains, he notes. People can hold on to the NFT (and its accompanying rewards), or they can independently choose to price and sell it on an NFT marketplace. “They’ll have to have a digital wallet, which we can help them set up, but the consumer and the marketplace really drive the value. They’re really timeless assets, and they just happen to live in the digital world, so just like any rare asset, I anticipate that will go up in value over time.”
In keeping with the loyalty play, brands can add benefits of owning a branded NFT over time, enabling the NFT to essentially serve as a membership card for future events or promotions. Animated celebrity company Superplastic, which has partnered with Gucci, is adding on special perks for owners of NFTs that it sold earlier this year, in addition to giving customers tokens. Perks tied to these NFTs include special access to both online and physical stores, and an in-progress restaurant in Miami.
“Essentially what we’re saying is, if you collect some of our NFTs or you have some tokens, you’re probably an uber fan of ours and we are going to reward you for being awesome and supporting us and being really into what we’re doing. It’s not so much about trying to make a shit ton of money, ” says Superplastic founder and CEO Paul Budnitz.
Smith says that the industry overall is just “scratching the surface” of how NFTs can be used. “We’re looking at this opportunity with Clinique as a strategic learning moment for the company, for all of our brands. It’s the first stop in what is going to be a journey to say, how do we really engage with digital for consumers?”
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