Phygital is portmanteau, a made-up word combining the terms physical and digital. 

On the other hand, NFTs (Non-fungible tokens) are blockchain-linked digital assets amassing one-of-a-kind value. 

While there have been a lot of Phygital businesses, how & why do the NFTs crossroads with these businesses? Let’s get started.

Brands×Phygital

Consumer-brand relationship relies big on instant gratification – because consumers want it. If not, 45% of consumers say they will switch brands if a business doesn’t cater to their needs. 

You could believe that the concept of phygital is futuristic or only applicable to people with access to advanced technology, but this is not the case.

Here are how brands actually incorporate phygital strategies within their respective industries:

• Automobile 

The first step in going physical with a car dealership is to optimize website for one-of-a-kind encounters. Additionally, this is the secret to lead generation for online auto sales.

Automobile brands don’t overhaul the entire website; they integrate live one-on-one video calls to embrace phygital interaction. 

• Retail

For peak season and beyond, the biggest names in retail have embraced live video shopping. The excitement of in-store shopping is brought directly to your desk or couch with live video shopping.

• Real Estate

Going phygital is also a possibility among the real-estate firms. Embracing the technology-backed phygital option helps brands build trust in their business models and properties. 

Phygital NFTs – WTF are They?

Phygital NFTs are blockchain-linked physically-representing digital assets, driving their digital values from metadata and smart contracts. NFTs based on physical assets are often connected to a digital twin of the physical asset (be it a digital image or 3D model). As the developing metaverse matures, these assets become intriguing as instruments to integrate the actual and virtual reality worlds.

7 Use Cases of Phygital NFTs in Marketing

Let us actually jump into the crux of the blog – phygital NFT marketing – find out the several categorical use cases of Phygital NFTs in marketing:

• Use NFTs as Event Tickets

NFTs can be used as digital tickets for events you are hosting, whether physical or digital. NFTs as event tickets have other benefits besides being able to command a greater price for each ticket and draw a larger crowd due to your NFT integration.

Mintbase is one platform that allows users to mint digital assets and tickets as NFTs. Such platforms add great value to event organizers in staging an eco-friendly event – free of paper waste. 

• Build A Community around Phygital NFTs

“In Web3.0, the community is all about ownership.”  – Alex Taub

NFTs are no different from other communities because they spontaneously form around shared interests. Access to elite social clubs exclusively available to owners of an NFT from a particular collection is now made possible using many NFTs. If you own a phygital NFT marketplace, you can establish a discord community that hovers around your platform.

• NFT-Product Integration

High-end luxury goods and extremely well-known consumer brands are usually the targets of counterfeits that damage the brand’s reputation (not to mention their bottom line). A certificate of authenticity can assist address this problem in the case of expensive goods, limited-edition products, or collectibles, but even those are susceptible to counterfeiting.

• Traceability for Products

With NFTs, you may serialize each product to give it a distinct digital identity. Since the data is kept on the blockchain, this function is like any other serial number. Additionally, every physical item is tracked separately from every other one. Because of this, it is more reliable and effective than personal serial number databases.

• Everlasting Royalty

Mass-market consumer items purchased for cheap today can turn into priceless collectibles years from now. Imagine receiving a portion of that pie as the original maker. If you issue the product as an NFT and include royalties in the smart contract, you can. Every time your products are traded on several sites, you can make more money this way.

• Utilities

If you’re a long-time NFT observer, you would know what the utilities are! If you have owned a Bored Ape NFT, you get personalized access to meetups and parties. Customer loyalty is the most straightforward utility to consider when it comes to your business. Right now, the simplest approach to contextualize usefulness is to give tokens with added value to your top/nest clients.

• Incentivize the Community

If you’re going to build a phygital NFT collection, you would want a project-specific community, won’t you? While you can leverage NFT marketing services to build a community, it’s the phygital NFTs that could incentivize your community members with long-lasting utilities. 

Conclusion

NFTs are no more a passing fad – they have become a necessity more than just an option – at least for marketers. Incorporating phygital NFTs in their marketing strategy plays a decisive role in businesses.

Do you need any assistance in crafting a phygital NFT marketing strategy? We hope we can plunge in with our marketing expertise!

FAQs

• What Are Phygital NFTs and how do they work?

A Phygital NFT work similar to any other NFT – designating and verifying unique ownership details. Each phygital NFT could represent any real-world objects like videos, music, clothing, wearables, and much more.

• How to Make Money with Phygital NFTs?

These NFTs could be treated like royalty-pegged digital collectibles – accumulating royalty payments forever (as long as the NFT stays on the blockchain).

Also, these NFTs could be staked on NFT staking platforms – amassing rewards and incentivizations (in exchange).