NFT business ideas for SME
A virtual world of interactions and transactions is driving the need for new technologies and platforms. Many entrepreneurs are realizing the value of NFTs and how NFTs are attracting cash. Nowadays, with NFTs being everywhere, they are perfectly suited to benefit small businesses as well. As NFTs exist on a blockchain that makes transactions secure, they cannot be substituted with a fake. They can always be traced back to the original owner or creator. With their digital permanence being an added advantage, given below are the ways by which NFT technology can help SMEs grow and retain customers.
1) Customer loyalty programs – NFTs can act as strategic tools for businesses to strengthen relationships with their customers and can help replace traditional loyalty-reward programs. They can offer customers more than just points for future use. In the sports world, offering NFTs as a reward is already becoming common, as athletes offer NFTs to their fans as a form of engagement. For instance, the band Kings of Leon released its album as an NFT and also granted fans a chance to win one of six golden-ticket NFTs.
2) Charity support – NFTs have become a fundraising vehicle for nonprofits. NFT artists have shown their support for charitable causes and key social issues. NFTs have already been used to raise money to help Afghan women. The company Bookblocks.io has partnered with a New York-based organization to help women in Afghanistan access education amid the Taliban takeover. Integrating a charity program into the business model of SMEs attracts customers. Consumers have a more positive image of a business when it contributes to a charity that they care about.
3) Secure fundraising – If a business has plans to open another location or expand its current site, a campaign involving NFTs could be used to raise funds. To do so, it is important to create a list of the types of art that would have value as NFTs. Working in conjunction with artists and entertainment outlets, countless types of NFTs can be generated and monetized to bring in funding. For instance, Ellen Degeneres recently held her own series of NFT auctions, raising a sum of over $33,000 for the World Central Kitchen, a food-relief foundation. Her monologue about NFTs was sold as the premium auction lot.
4) Promotions – NFTs can help increase brand awareness and can be used to provide personalized gifts or vouchers to customers. Offering NFTs that can unlock special rewards and getaways can lead to customer engagement. Such offers would be different from traditional offers and could turn customers into loyal fans. Through owning exclusive NFTs, collectors would feel a deeper sense of connection with a business, which would lead to increased customer loyalty. For instance, Funko has announced its plans to develop NFTs of its popular licensed characters and showcase them on TokenHead, a website for showcasing and tracking NFT holdings. This has led to the stock of Funko almost doubling in price.