In the previous article in this blog, we analyzed the advantages of NFT-formatted tickets, focusing in particular on the aspects of authenticity, speed and automation of processes, and the possibility for clubs to originate perpetual revenues.
Let us now look at other aspects of NFT ticketing, starting with security.
Why does security increase?
Thanks to the KYC procedure, frequently used on platforms that apply blockchain technology, it will be easy to track all ticket resales and place conditions on resale prices and many other parameters that may be useful for the safe conduct of an event. Very often through false identity DASPO recipients have managed to circumvent the restraining order. Undoubtedly such innovations could arouse interest and support from institutions. Other innovations are being implemented that could facilitate health tracking of the public attending an event, an application of great utility when we think of the pandemic period.
Tickets may also be used for Fan Engagement
NFTs replacing traditional tickets could be used as cards to access other goods, services or experiences dedicated by companies. Offering promotions and cross-selling items at a dedicated price, giving access to an experience upon reaching a certain number of NFTs could be just some of the commercial activities that could be pursued through this new tool. In addition, it would be easier for companies to keep track of fan activity, profile offerings by increasing customer satisfaction, and use commercial data to enable sponsors to generate higher ROI.
New ways of selling
What if companies want to sell their NFT tickets using different ways? This is also an advantage that this technology can offer. By leveraging external marketplaces that are compatible with the ticket’s Smart Contract, tickets could be sold through auctions. Leveraging external marketplaces is possible and also easy; it could be a good strategy relatively to exclusive tickets or conversely for last-minute tickets that remain unsold.
NFT ticketing has lower costs
It may seem strange, but the costs associated with selling and minting NFTs are far lower than the direct and indirect costs of the traditional ticketing system. The preconception around anything to do with blockchain is that it is an inaccessible technology, culturally and economically. This happens because most of the news that enjoys great resonance is about the record sales of an NFT or the staggering growths of Bitcoin, Ethereum, or even the market capitalization of other cryptocurrencies.
In reality, this technology is low-budget and therefore the biggest obstacle is cultural.
Cultural, in the sense of understanding the phenomena, but also in the sense of lack of know-how within sports clubs. The ability to create NFT tickets using blockchain is not and will not be exclusive to the top brands in global sports.
NFT Tickets: will their spread increase?
As was evident from the preceding paragraphs, the benefits of using this technology are multiple. The benefits of using NFT technology in ticketing are two-sided; organizers and guests are able to benefit from it. The latter play a role that is not limited to attendance at an event but can become all-round customers by using the right levers and determining their respective potentials as stakeholders. How is it then that this technology has not yet had a strong market hold when compared to other blockchain products such as Fan Tokens?
- The benefits that would succeed in using this technology are less intuitive than the operation of other products such as Fan Tokens;
- Tickets are assets that can be found even through the use of traditional methods;
- Revenue generated from other initiatives generates spot, but immediate revenue;
- Because it is a tool dedicated more to governance than to customers, it enjoys limited media appeal.
What may foster the development of this use will be the generational change of the prevailing segment of customers, who will be increasingly digital natives and attentive to innovations and new technologies.
It will be an audience increasingly devoted to interaction and intolerant of passivity, who will seek increasingly tailored offerings to meet their needs and feel part of a reality.
At the same time, a generational shift will take place that will also affect the governance of companies.
Certainly those who move with the right timing, identifying the needs of customers in the near future, will be able to gain more substantial slices of the market and with more ease considering the scarcity of competitors. Important will be to use the data extrapolated from this new mode of ticketing, which could be the most important touchpoint between event organizers and spectators.