How to use utilities to improve holder retention
NFT creator friends! Are you on the utility bandwagon yet?
If you’ve read our blog, you’ll already have heard plenty about why utilities are the future of the NFT industry. Not read our recent articles? (we’re not angry, we’re just disappointed). Let’s recap:
- Utilities are what turns an NFT from a pretty picture (just a jpeg) into something that has real value. Crucially they make your collection more appealing, more valuable - and keep your holders engaged and sticky (no more paper hands).
- For creators, the possibilities are nearly endless - they can add physical rewards like merch, digital goodies such as avatars or new features, whitelists for future releases, meet-ups (digital and IRL) - and much more.
Sounds good right? We’re with you. So, let’s move on from the theory to the practical. Just how do you create collections with utility? And very specifically, how can NFT utilities improve holder retention?
1. Reward holders for loyalty with great utilities
Want to keep your holders loyal? Then you can harness the power of utilities to reward them for staying sticky.
Using the segmentation functionality of a platform like Tropee, you can get to grips with who your holders are, what they’re up to, and reward them accordingly. Build special utilities for holders who have owned tokens for more than a month. Create more for those who have held their tokens for two months or more. Tell your holders that if they don’t list their tokens on OpenSea then great things are coming their way. Get them excited and keep them engaged.
Check out Starbucks for inspo - the coffee giant is rewarding holders of its inaugural NFT collection with a wealth of free stuff - from drinks to merch. And the longer you’re a holder, the most benefits you get.
2. Promote what’s to come with a super cool roadmap
It stands to reason that if your holders know there are great things ahead, they’re likely to hang on to their tokens and buy more. The good news is that you can tell them with a great roadmap.
In fact, we believe in the power of the roadmap so much that we’ve blogged about it. And the good news, it’s pretty straightforward to do well. We think that there are a number of golden rules which NFT creators need to follow - including making your roadmap:
- Visual (show not tell wherever you can)
- Achievable - you’ll need to deliver on what you offer, so keep it realistic
- Exciting - what’s coming down the line that’s going to get your audiences really engaged?
And of course your roadmap has to demonstrate utility - clearly showing the real world value of your NFT project and what it will deliver for holders in the long-term.
Want a good example to learn from? Take a look at everyone’s favorite rock Legend Ozzy Osbourne, who got in on the NFT act last year when he co-created CryptoBatz. We think the CryproBatz roadmap is comprehensive and exciting (holders have the chance to own a limited edition piece of Ozzy’s art) and it also looks great. Check it out.
3. Show your holders you care - get online and get talking
The chances are you’ll already be on Discord and Twitter, and you don’t have to be an NFT genius to know your NFT holders are likely to be engaged and active social media users.
So if you want to encourage brand loyalty, it’s time to get online. Show your users that you’re listening to what they want and that you care about them. You can post regular updates, behind-the-scenes insight or even just have a chat with those who want to engage.
We think VeeFriends creator Gary Vee is the master of doing socials right. Check out his Twitter to see how he’s continually engaging with his audience. What’s more, he often runs Ask Me Anything sessions (AMAs to those in the know) to let his holders get the real scoop on what it’s like to run one of the world’s biggest NFT collections.
4. Voting rights rule OK
Not sure what your holders really really want? That’s no problem when you can just ask them.
We’ve found that successful creators often let users vote on what they want to see next from a collection. And that this democratic approach to development is particularly powerful when it comes to utilities. Why not offer your holders a choice between new utilities (physical swag or digital merch perhaps) and let them tell you what they most want from the brand.
One area where voting rights are really compelling is when it comes to charity donations. Some collections - like Creepy Creams - promise donations to charities for every NFT purchased. And the smartest move? They let holders decide where that money goes.
The possibilities are vast - let users vote on where your collection goes next, whether that’s when a new token might drop or even what it might look like or represent. Get creative and engage your holders - they’re more likely to be loyal for the long-term.
5. Talk to Tropee and get started
We know, we know - you’re talking to us already! If not, what are you waiting for?
We’ve recently launched the world’s first platform to build NFT utilities in minutes. You don’t need to be a tech expert to use it (no code required) and you can get up and running in less time than it’s taken to read this blog.
We’ll help you understand what utilities are best for your brand (what your users really want) and build them, then monitor how they’re working and decide what to do next. With Tropee, a more loyal, engaged, holder-base is firmly within grasp.