Can Small Businesses Benefit From The Use Of Non-Fungible Tokens?

The world of cryptocurrency remains somewhat elusive for many investors from all over the world who are still apprehensive about its ability to derive actual value over the long term. However, as of January 10th, 2024, there has been a change in the crypto environment, one that is predicted to bring more engagement to the network, including from institutional and retail investors. The exchange-traded funds had been widely anticipated by all market users, and their arrival caused many to believe that they would usher in the beginning of a new year in the world of cyber coins.

Yet, they are not the only asset investors should keep an eye on, as they’re not the only assets with the potential to help businesses move forward. Non-fungible tokens are just as noteworthy, and their addition to any enterprise can truly help procedures and tasks become faster, safer and more reliable. The advantages are not only limited to the big brands and corporations, as the NFTs are just as beneficial for small and medium-sized companies as well.

Loyalty programs

Customers enjoy personalized experiences that show them you value their support and contribution to keeping your business profitable and relevant. That is precisely why designing a loyalty program is a great way to keep your clientele loyal and keen on your enterprise. Although NFTs are still a new and, therefore, highly speculative market, there are ways to go for the safer alternative. Your best bet would be the Ordinals, a similar asset class that is hosted on the Bitcoin blockchain. Their main advantage is that they are safer and more reliable than their altcoin-driven counterparts.

But how do you create a loyalty program based on the use of Ordinals? Customers would have to buy a token first and then use it in both online and brick-and-mortar locations to access discounts and sales or get exclusive access to brand-new products. You can also create customized offers for each individual based on their shopping patterns and the products they’re more likely to add to their carts.

Supply Chains

Logistics are a crucial part of all businesses, the backbone on which everything is built, and the system that allows you to manufacture and deliver goods. However, with online shopping and deliveries becoming commonplace, there has also been a surge in counterfeits and fake products reaching customers instead of the real deal they paid for. Although such events might seem inconsequential from an outsider’s perspective, they can cast doubt on a retailer’s trustworthiness and ability to deliver high-quality products, as well as result in considerable frustration and annoyance on the customer’s part.

Simply put, counterfeits can damage your business reputation, so it’s essential to mitigate any issues as much as possible. Using NFTs can eliminate the problem of counterfeiting by tracing product movements across the supply chain and providing the customer with a complete history of the product, from the sourcing of the raw materials to the moment it arrived on the shelf. If you’re dedicated to sustainability, using the NFTs will also be a great way to showcase the progress you’re making, whether that includes using materials or fabrics that were recycled or repurposed, using less water, reducing or eliminating pesticides and taking practical steps to improve conditions for the community.

New Customers

Keeping your loyal clientele nearby is essential, but it’s also vital to attract new customers who could be interested in your goods. After all, that is the best way to ensure your revenue remains consistent and you record gains. Ordinals are highly appealing to a large number of people, so you shouldn’t underestimate their potential. Younger demographics, especially those in their 20s and 30s, are more likely to be familiar with them, but there’s no small number of older adults who are aware of their existence and use them as well.

Non-fungible tokens can be used during a store opening or at the launch of a new product to act as an attention-grabber. Since Ordinals are located on the blockchain, verifying ownership is a very straightforward process, and you can easily hand out rewards in the aftermath. For instance, you can give out 20% discounts for the rest of the year for the first 100 people who buy a token. That will certainly create a lot of hype and attract even those who were entirely unaware of your business up until this point.

Fundraising

Cyber tokens are also a valuable tool for fundraising, with the possibility to donate all the proceedings to charitable organizations or causes. During the days of the pandemic, some NFTs were created and launched for the sole purpose of raising funds as part of COVID-19 relief efforts aimed at assisting the community during the difficult times, with particular emphasis placed on helping those belonging to more vulnerable demographics. Companies have also begun observing the ways in which tokens can raise funds for environmental causes, a growing concern among members of the general public.

Becoming invested in these actions shows that you care for and value your community. This is an important thing when it comes to brands, as customers are often convinced that all entrepreneurs want is profit. You can challenge that notion and improve your brand reputation as well by integrating this technology into your fundraising process.

Brand Community

Similar to creating personalized offers for your brand to attract and retain customers, you should also aim to build a strong community. Hosting regular events can help in that regard, but instead of selling event tickets the standard, classic way, you should instead sell NFTs, an option that will allow you to have far more control over the number of people who attend the gathering since they can’t be transferred or resold without your knowledge. You can also organize giveaways that either require participants to own a specific NFT in order to enter or which have the tokens as the prize since they’re collectible and entirely unique assets.

NFTs are still relatively new on the financial market, but that doesn’t mean they’ll always be a niche asset class. In fact, predictions indicate that their popularity will continue growing until they reach mainstream levels, at which point most business owners will want to integrate them into their processes.