BLOCKCHAIN, CRYPTOCURRENCY AND THE NEW FRONTIERS OF RETAIL MARKETING

//BLOCKCHAIN, CRYPTOCURRENCY AND THE NEW FRONTIERS OF RETAIL MARKETING

BLOCKCHAIN, CRYPTOCURRENCY AND THE NEW FRONTIERS OF RETAIL MARKETING

2019-07-12T17:13:41+02:00 16 January, 2018|

Blockchain and cryptocurrency.
If the latter word recently has entered the common vocabulary due to the growing financial value of Bitcoin, the first one is still completely unknown to most people.

Yet the Blockchain technology will probably bring great change in the future not only in the financial world. Even the retail field could take advantage of the sharing economy for brand awareness, engagement and sales.

What is Blockchain and how can it improve company performance? Read the article.
WHAT’S THE MEANING OF BLOCKCHAIN

Blockchain is a computer technology that is based on sharing data in the form of blocks of algorithms that store transactions which are validated in real time by the parties involved in the sharing activity.
This sharing activity is very transparent, decentralized and thus able to develop trust.

As we see everywhere, trust is a fundamental goal of all the current marketing strategies, both for large and small companies, since it is the base for creating a community around the brand.

But how will cryptocurrencies and blockchains affect the retail marketing?

1) A BETTER DATA ANALYSIS

One of the main problems for retailers is collecting and tracking data about their market.
Without a clear vision of their customers, retailers are forced to look for them everywhere, investing money and time in many different channels and strategies. The result is a non-optimized marketing plan with a low ROI.

Usually the data available to retailers are scarce and fragmented. However, thanks to the blockchain technology it is possible to cross them with the information contained in databases of banks, third-party apps and others, thus obtaining a more defined customer profile.

2) BETTER ROI

Social networks show how much companies are working to turn users into customers and customers into ambassadors of their brands through incentives and gamification projects that increase brand awareness and engagement.
In this way it is no longer the company to promote itself, but the users to spontaneously promote it to their community.
The result is a reduction in marketing and customer acquisition costs.

Retailers can facilitate this transformation by offering to users micropayments in cryptocurrencies as rewards for their actions

Is it as easy as it seems? Not exactly. First of all, it is necessary to have a clear understanding of the psychology of customers. Then, it’s important to create gamification and loyalty programs that are suitable, honest and engaging.

3) COLLABORATION BETWEEN BRANDS

Brand loyalty is very important. It is easier and cheaper to sell to a satisfied acquired customer than selling to a new customer.
The blockchain technology is based on a transparent sharing of infos. This lead to the creation of communities in which there isn’t a single central authority that filters and distributes the information, such as a company, but many influential subjects who express their opinion.

In this context, companies that have similar targets are no longer forced to see themselves as enemies and compete for the customer’s attention. On the contrary, they can collaborate and develop interconnected loyalty programs for the benefit of all.
This is true also for retailers.

4) PAYMENTS VIA SMARTPHONE

Any effort in terms of marketing becomes useless if the customer can not make payments quickly, easily and conveniently.
Consider that there are more people who own a smartphone than people who have a bank account. So it is clear that retailers should invest into building a system of payments via mobile.
Blockchain and cryptocurrency meet this need, facilitating transactions and protecting personal data.

[source: Forbes http://bit.ly/2DBuMbS]