NFT collectors usually get excited when a big player like the car brand Porsche enters the Web3 space with good NFT marketing. Porsche has joined the pack of Web3 companies putting out collections of NFTs (non-fungible tokens). But the drop was slow to start and went in a way that audiences of the premium car manufacturer did not expect. Porsche's recent move into NFTs led to a big drop in value and customer backlash, which could hurt the brand's reputation, confidence, and desire. When brands jump into digital tokens too quickly, the biggest mistake they make is to treat them differently than their physical peers and give in to FOMO. Many brands try to do too much and ask agencies to make NFTs or other metaverse projects rapidly.
How the Porsche NFT Drop Crashed
In the days after Porsche's stock dropped, many people looked at the company's NFT roadmap and NFT marketing. Many people think the collection turned out because Porsche didn't understand how the crypto world worked and didn't know how to reach users who weren't usually connected to Web3 sales channels. Even though this is mostly true, three things might have assisted Porsche in making a successful decrease. Web3-native manufacturers, artists, and consultants say Porsche's strategy failed in utility, community, and communication.
Lack Of Utility
As the number of NFT projects has grown over the last few years, brands have had to develop new NFT marketing and an NFT roadmap to add functionality to their collections. The utility can come in many forms, such as perks for the community, rewards, easier access to events, and more. But Porsche didn't say exactly how its 911 NFT collection could be used other than the personalized digital image.
Porsche works with great advertising firms, and the brand is very strong. But in the end, if the NFT's primary purpose is to be the NFT, that has no use. Most of the time, the value of what individuals are shelling out for is more important than the price.
Community, a key utility aspect, is another important thing Porsche didn't consider enough. Different from other Web3 drops, like Nike, the Swoosh built its Web3 community and fan base slowly over a few years, but Porsche grew its Web3 existence and user base quickly in the six months before the mint opened. Other brands have entered the space, and it took them a long time to build a community first. If you look at Nike, they've genuinely had their moment over the last few years. When it came to Porsche, they thought their audience was their community and thought they would sell out. Porsche did not add a clear image of community to their NFT roadmap.
From a technology point of view, the company also had to think about how ready its users were to take on the project. Having an NFT requires a certain amount of Web3 onboarding. Brands must educate their users so customers can easily access loyalty programs and the perks that come with NFT and enjoy them.
A Disjointed Storyline
Also, Porsche had trouble getting its users to understand the purpose and goals of its collection via the NFT roadmap. Without clearly defined plans, customers had to figure out the value and meaning of the collection on their own, which led to a small number of orders and the bad press Porsche is getting today. Porsche had trouble getting enough interest in the project to get enough money for it because its goals were not well thought out. Most people see this as a failure at first glance, but Christian Reza sees Porsche's collection as more of a mistake and a stepping stone for the company.
What We Can Learn From Porsche's NFT Cash Drop
The Porsche NFT drop gives several valuable lessons for individuals and businesses willing to explore the world of NFTs. Here are a few essential points:
Strategic Analysis Is Essential
To avoid these problems, we should start digital asset projects only after giving them a lot of strategic thought. Before starting any project, it's essential to have clear goals and a long-term plan with KPIs or success factors that can be measured. We should also consider the value of the launched digital asset, the audience we want to reach, and the marketing channels. There should be an NFT playbook that shows how to make and use an NFT drop strategy.
Launching NFTs successfully depends on how well people can talk to each other. Poor communication on the part of the Porsche team led to complaints from customers, a drop in demand, and confusion. Brands should talk to their target audience often, clearly, and consistently so that the community feels like its voice is being heard. Also, it's vital to use criticism to learn how to do things better.
When a customer buys an NFT from a company, they predict it to be worth more to them than what it costs. The NFT should be unique or useful in a way that fits with the brand's value statement and makes the customer's experience better. When Porsche first released the NFTs, they didn't have enough use or exclusivity, so their value dropped significantly, and customers didn't like it. But the brand was able to get some of its value back by offering things that money can't buy, like access to Porsche experiences.
There isn't much room for error in the world of luxury. When people purchase digital assets from a luxury brand, they expect them to be a good investment that doesn't go down in value quickly and isn't tied to the brand's pricing model. Numerous luxury brands risk trading their long-term brand image for five minutes of popularity by trying new things too quickly, being too hasty, and not giving the value proposition enough thought.
In conclusion, the Porsche NFT drop can teach several important lessons to businesses and people who want to learn more about NFTs. Using blockchain technology and digital collectibles, businesses can give their customers a unique and memorable experience, find new ways to make money, and get closer to their audience. As the market for NFTs continues to grow and change, it will be interesting to see how other companies use this technology to make new products and experiences that catch the attention of consumers all over the world.