The blockchain to improve a brand’s customer experience through tokenization, NFTs and the metaverse.
When it comes to blockchain, the main areas of application are the financial sector and supply chain for product traceability.
In this article, however, I would like to focus on the impact of the possible application of this technology on distribution and marketing processes, addressing the issue of tokenization, NFTs, and the metaverse.
Tokenization is the conversion of the rights of an asset into a digital token recorded on a blockchain, where the asset and the token are linked by a smart contract. We must consider tokenization as an opportunity to develop a new economy based on tokens, which aims to create an ecosystem supported by tokens themselves, which can represent anything physical or digital (a book, a house, a car, etc.)
The token economy is a phenomenon already present in a completely different context from that of the blockchain, i.e., it refers to a psychological technique developed based on behavioral psychology. It consists of a form of “educational contract” used with autistic children, through which the educator enters into an agreement with the subject: for every correct behavior, the subject receives a token and in exchange for a certain number of tokens, the subject is guaranteed access to a certain “reward,” in order to incentivize the learning of a behavior.
But what does this have to do with the blockchain?
We have already talked about how this technology has introduced a consensus mechanism to induce network actors to collectively manage a distributed register truthfully, rewarding them with cryptocurrencies.
This mechanism is based precisely on the same principle of the token economy used with autistic people and can be used in the same way to incentivize behavior through the use of the so-called “purpose-driven token,” called so by Shermin Voshmgir in her book “Token Economy.”
Any purpose can be incentivized, and the “monetary policy” of tokens can be regulated by a smart contract that regulates the issuance and management of the rights of these tokens.
In this way, the token can be seen by companies as a means to engage customers, thus improving the customer experience and increasing loyalty.
With blockchain, it is possible to create the digital version of loyalty cards, and thanks to smart contracts, it is possible to assign utility tokens automatically based on purchases made.
According to FINMA, Utility tokens represent different rights related to the ability to use a product or service.
In this case, they represent the “vouchers” that customers can use in business activities or in the ecosystem of partner companies to buy products at discounted prices.
Just as, for example, a clothing brand could produce a sneaker with integrated IoT, which assigns the same tokens based on kilometers traveled.
Similarly, instead of using utility tokens, companies could create NFTs, a particular type of token that has a unique identifier that makes it unique and indivisible. These tokens can represent any type of asset, whether digital or physical. They are mainly used in the world of art, for the protection of copyrights, and to represent the digital ownership certificate of real objects.
In this way, companies could further involve their customers, assigning them NFTs representing exclusive services, thus further improving the customer experience.
For example, a company could attribute NFTs to its most loyal customers to guarantee them privileged access to events organized by the same company, or these tokens can be used to involve consumers in the creation of products and services.
Another example refers to a clothing brand or perhaps the automotive industry, which decides to market a special edition product with a limited number of pieces and sells it together with a linked NFT, which certifies not only the ownership of the asset but also the uniqueness and exclusivity of the product itself.
Furthermore, the same clothing or automotive company could always create an exclusive product by associating it with an NFT, but entirely in digital format.
This is where the new digital world, the metaverse, comes into play.
The metaverse can be described as a reproduction of what we do and experience every day in our real life. We are talking about a virtual world in which everyone has an avatar to have a parallel life to the real one.
It can be imagined a bit like if the internet were a big virtual city to explore through avatars (us), in which people can pay using digital currencies and in which smart contracts establish relationships between services (movies, music, video games, learning) and users.
Returning to the example, the brand in question can sell its digital product using the metaverse as a “showcase,” and the NFT linked to the product itself could allow access to physical products and exclusive experiences.
Finally, it would also be possible to create digital events and exhibitions on the metaverse to present new products and convey a brand’s values or to assign discount vouchers that can be spent in the real world.
In conclusion, nowadays, as the online world becomes increasingly dominant and companies feel the need to unite the physical and digital world to improve interaction with consumers, blockchain is an important ally.
According to Forrester, 76% of executives say that improving CX is a “high” or “critical” priority. A presence and experience in the metaverse could be the next step forward in this process.
NFTs will increasingly become part of our lives and become an integral part of the metaverse.
This is also reiterated by Collins, the prestigious American dictionary, which states that NFT is the word that best represents 2021.
Morgan Stanley estimates that by 2030, the NFT market could have a valuation of around $300 billion, with luxury digital collectibles reaching a share of $25 billion.
- “La FINMA pubblica una guida pratica sulle ICO”, 2018, https://www.finma.ch/it/news/2018/02/20180216-mm-ico-wegleitung/
- Battaglia, “Criptovalute, token e coin: quali sono le differenze”, 2012, https://www.wallstreetitalia.com/criptovalute-token-differenze
- https://www.nicolaporro.it/economia-finanza/criptovalute/perche-il-metaverso-di-facebook-vestira-nike/
Market and Data
_old_Become an author
Wallet
