Despite 21% of US millennials actively collecting NFTs, the industry still struggles with widespread adoption. The process of creating and collecting NFTs can be complex and technical for the average user, hampering understanding of their true value. These obstacles are hindering mainstream adoption, despite the industry’s immense potential.
Fortunately, technological advancements are addressing these challenges, opening up new opportunities. Location-based NFTs are revolutionizing user experience and accessibility, making tokens easier to access for users of all levels. By tying NFT ownership to physical locations, a new level of scarcity and utility is introduced, paving the way for innovative business models.
Understanding Location-based NFTs
Location-based NFTs, also known as geotagged or Area NFTs, are digital content linked to real-world locations through metadata. These unique tokens, secured by smart contracts, can represent various digital identities or exclusive vouchers tied to specific locations. Users must physically be within the specified coordinates to access these tokens, enhancing the connection between physical and virtual worlds.
By linking NFTs to real-world locations, businesses can offer unique experiences and rewards to loyal customers. This approach transforms traditional in-store experiences and opens up new possibilities for engagement and utility across various sectors.
Driving Innovation in Business Models
Location-based NFTs present an opportunity for offline businesses to adapt and enhance customer engagement, particularly in the wake of changing consumer behaviors post-pandemic. Many businesses are exploring the transition from offline to online operations, seeking ways to revive in-store experiences and transform them into engaging activities.
While NFTs are often perceived as collectible profile pictures, their potential goes beyond art, especially with the integration of geolocation technology. By merging physical locations with virtual experiences, businesses can offer unique rewards and experiences, driving customer loyalty and revenue.
“Attractive rewards play a key role in customer acquisition and retention. Location-based NFTs enable businesses to offer exclusive rewards that can only be redeemed at select locations, encouraging physical store visits and driving revenue for offline retailers,” explains Quaison.
Redefining Consumer-Brand Interactions
Geotagged NFTs are just the beginning, presenting opportunities to disrupt various industries by incorporating location-based engagement models. For instance, the music industry can leverage these tokens to enhance fan engagement, offering exclusive giveaways at events or locations to deepen connections with artists.
Record labels can create new revenue streams by using location-based NFTs to connect fans with artists through shared experiences and exclusive events. By fostering communities around regional or seasonal events, record labels can enhance the overall fan-artist relationship and create new opportunities for NFT-driven campaigns.
Unlocking the Full Potential of NFTs
“Our goal is to empower business owners to leverage the full potential of NFTs to create engaging experiences for their customers,” says Quaison. Consumers are increasingly interested in NFTs and eager to explore their utility and rewards, signaling a shift towards broader adoption of this technology.
As businesses embrace location-based NFTs, they can tap into new engagement models and drive customer loyalty, ultimately integrating NFTs as a standard part of consumer interactions.
The content was originally published by The Human & Machine.
Image Credit: The Human & Machine
This article was first published on April 13, 2022
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