What: Brands like Adidas, Gucci, and The Hundreds are finding that NFT tokens are a great way to reward their superfans.

Why is it important: NFTs offer brands a way to extend holders’ unique privileges, creating a means to foster and reward customer loyalty. Since NFTs still function as high-priced speculative assets, the customer relationship can take work to manage but, the efforts show they could have a place in fashion beyond being just collectibles.

Because NFTs can act as unique identifiers for their owners, similar to an email address but with added features because of the programmable smart contracts underlying them, brands can use them to extend privileges and perks, including freebies and exclusive access to new products.

The Hundreds’ NFT program has been successful because it has created a genuine sense of shared ownership with ABS members. Earlier this year, the brand started issuing members royalties on sales when they used their bombs in products. For now, that means store credit to spend with the brand to avoid running afoul of security regulations.

Brands using NFTs to keep customers hooked