Web3 is quickly becoming the new social media, and many brands are jumping in and experimenting with blockchain technology. However, this must be done correctly to protect the brand’s image and support its mission. There are three key factors that determine the success and feasibility of implementing an enterprise level NFT program: clearly defining brand objectives, intellectual property identification & utility implementation, and marketing. 

First, a brand must match brand objectives to their NFT Program. A classic saying in business is that “a product must not search for a solution to a problem that doesn’t exist”. In this ilk, a brand must only leverage Web3 solutions as a natural progression and extension of their brand; in other words, brands should use NFTs only if it makes sense to the brand. NFTs are not for every company (at least for now; many argue that NFTs will become as ubiquitous as data records in the upcoming years due to the blockchain’s sheer technological power of recording accounts securely). NFTs are currently a great tool to increase consumer engagement, advertise a new product launch, bolster consumer loyalty programs, engage with a younger audience, elevate brand perception as being ‘innovative’, increase consumer lifetime value, and stimulate cross selling. 

Second, a brand must identify key, usable intellectual property (IP) and implement utility linked to brand objectives via NFTs. IP is at the center of many profitable businesses and requires due diligence if vended. A brand must define its IP through a legal lens to determine ownership, liabilities, and correct artist attributions. Due to the royalty technology enabled by smart contracts on the blockchain, artists are now able to receive continuous payouts after each subsequent resale. In addition to IP, a brand must incorporate utility, or value, into its NFTs. The most successful NFT programs have not only captivating art, but they also contain value that is unlocked with the NFT sale. For example, some NFTs unlock utility such as exclusive club membership, access to in real life (IRL) and virtual experiences, and whitelisting (early access to product launches, events, and drops). Utility is how brands can be tremendously creative and develop consumer-brand engagement unlike anything before. 

Third, marketing is crucial to unlocking a brand’s potential in Web3. NFT marketing strategy is typically broken into targeting three main cohorts: brand super fans who know nothing about NFTs, NFT enthusiasts who are extremely familiar with blockchain technology, and brand fans who are mildly knowledgeable but receptive to learning about NFTs. Regardless of which group the brand’s target demo falls into, education is key: WHY the brand is leveraging web3, WHAT the brand is doing with NFTs, and HOW the brand will engage consumers (typically through utility). This education messaging is key to engaging with all three groups and doing so by supplementing current marketing strategies. Twitter is a key platform for this messaging.

In all, there are a few strategies that are critical for an enterprise brand taking the leap into Web3; the brand must protect its image and perception while cautiously experimenting with this new technology. It’s not easy, but for those brands that successfully tap into the world of NFTs, the payoff is significant.