Revving Up for Success: Porsche’s NFT Project Road to Redemption - Lessons to Learn
2023 is a promising year for web3 as many established companies are implementing blockchain tech into their customer engagement strategies. However, like with any new venture, there may be challenges along the way. Porsche, a sports car manufacturer, recently introduced an NFT collection, but it did not sell well during the mint phase and faced criticism from the web3 community. Despite this, it is positive that Porsche is exploring web3 as a means of building brand and engaging with fans. As web3 is still a relatively new field, it is understandable for companies to make mistakes. Porsche should be viewed as a pioneer in this space and can bounce back by learning from the shortcomings of their NFT launch strategy.
Strategy
Porsche is a well-known and popular brand with a dedicated fanbase. The company's decision to target the web3 community with their NFT collection is a good move, but their strategy was flawed in terms of understanding the needs and wants of the web3 community. The web3 community values openness and inclusivity, and it seems like Porsche did not fully grasp this principle. Additionally, the gap between web2 and web3 service models is still significant, with many existing agencies lacking the capability to execute web3 projects on a large scale. In order to improve their strategy, Porsche can consider the following:
During the planning phase, assemble a diverse group of web3 experts to provide insights and develop a high-level strategy. This group should include individuals who own high-value NFTs, people who have transitioned from other industries to web3, and tech professionals who have moved from web2 to web3.
Clearly define the target audience for the project. Is it the existing web3 community, Porsche's existing fanbase, or a combination of both? Understanding this will help with the go-to-market strategy.
Invest in upskilling internal teams and agencies, by bringing them into the conversation and allowing them to learn from web3 leaders and experts.
Utilise Twitter to test the strategy with the web3 community by asking questions, running polls, and fostering dialogue and debate. Porsche created a new account for this project, but they already had a strong presence on their main account and it would have been better if they had used it as an opportunity to engage their existing community.
Community
Community is a vital aspect of any web3 project, as it is an integral part of the web3 ecosystem. Porsche chose to create a new community from scratch for their NFT project, despite already having a large following on various social media platforms, such as 2.1 million followers on Twitter, 27.1 million followers on Instagram, and 11.8 million followers on Facebook. This decision was a missed opportunity for the brand, as established companies have the advantage of tapping into their existing communities and onboarding them to web3 projects. To improve their approach, Porsche can consider the following:
Utilise existing communities by identifying web3 leaders, experts, and enthusiasts within them and engaging them in the project. These individuals already have a connection to the brand and will be more likely to participate.
Educate and onboard non-web3 users to web3 by making it easy for them to participate. Provide resources and make it easy for them to purchase an NFT using traditional payment methods.
Collaborate with an established web3 community, as it will lead to higher adoption rates and provide the opportunity to work with industry leaders who are shaping the space. A reputable web3 project would likely be excited to partner with Porsche.
Pricing
The pricing of the mint sparked debate and discussion, which Porsche did not handle effectively. This led to negative sentiment among the web3 community on Twitter and Porsche did not respond quickly enough to address the issue. The mint was priced at 0.911 ETH, which was deemed too expensive by the web3 community. The utility of the NFT, such as customisation options, community, and "money can't buy" experiences, was not well-defined and did not match the high mint price. Additionally, the FAQ section on the website did not provide enough detail about the utility of the NFT. To improve pricing strategy in future projects, Porsche can consider the following:
Focus on providing tangible utility that excites the audience, rather than trying to get the price right. The perceived value of the NFT should be greater than what is being paid for it.
Poll the community on mint price options and allow them to decide what they are willing to pay for the NFT.
React quickly to feedback and pivot on the price if necessary.
Clearly define the utility and roadmap for the NFT, including partners, scope of the project and events for holders. People expect a brand like Porsche to have a well-established plan for this type of NFT project.
Creative
Porsche's decision to collaborate with a group of artists for their NFT collection is a positive move, as it allows for customisation and the creation of one-of-a-kind NFTs. However, the artwork has not received much attention from the community. To improve the creative aspect of their NFT projects, Porsche can consider the following:
Take note that car-themed NFT collections have not been successful in the past and consider that in the initial creative direction planning for the project.
Explore alternative ways to integrate NFTs into existing popular experiences such as video games. For example, creating NFTs of cars, and allowing players to race against other NFT holders. These NFTs can be upgraded like cars in the real world.
Consider creating a unique and interesting PFP (Picture for Proof) that represents the Porsche brand. This is an area where Porsche can be creative and think outside the box.
An idea to think about
Porsche has a deep understanding of their audience, which are primarily the owners of their sports cars. To further engage with this community, Porsche could consider offering NFTs to customers who purchase one of their cars. This would create a direct relationship with their customers and offer them unique experiences. One approach could be to create physically-backed tokens that are linked to the car itself. This would give owners a digital asset that is linked to their car, which could offer a variety of perks such as:
Organising regular meetups and drive days
Opportunities to participate in sim racing competitions
Annual meetups at Porsche HQ in Zuffenhausen
Access to sessions with Porsche engineers and designers
Tickets to race events around the world
Early access to new car launches
This would create a unique and valuable experience for Porsche owners, and enhance their engagement with the brand.
It's really encouraging to see established companies like Porsche exploring the potential of web3. Despite the challenges that may arise, it's important for brands to test the waters in this emerging field in order for it to become more mainstream. Porsche's entry into web3 is a positive step towards onboarding a wider audience to this space and furthering its adoption. The experimentation and success of brands like Porsche will pave the way for more companies to embrace web3 in the future.