Renee Francis on how blockchain can boost marketing
As blockchain education spreads, so too does the discovery of different implementations of the tech in other industry contexts besides that of manufacturing, logistics and finance. In the world of marketing, blockchain presents incredible potential for a host of benefits that will increase productivity and improve relationships with customers. Here, Renee Francis, founder and director of Take3, explains how.
1. Enhanced data security
One of the biggest challenges that has faced marketers in recent years is access to audience data. Platforms such as Meta and even Google have been ever-tightening the leash on data security in a bid to appease the increasing masses who are concerned about how their data is used. To effectively market, you need to know as much as you can about your target audience – where they reside, what their purchase history is (if applicable), their browsing habits, and other demographic information. This data is especially handy for paid advertising campaigns, but also for organic marketing to nurture customer loyalty slowly.
Of course, in the wave of data breaches from big-name, traditionally centralised institutions it’s no wonder that audiences are wary. Blockchain offers an appealing alternative; an encrypted, decentralised network that can keep data watertight. Marketers can leverage blockchain-based solutions, be they decentralised social media platforms or other dApps and protocols such as adChain, which tracks impression-level data points while protecting user privacy. In short, blockchain tech significantly reduces the risk of data breaches while still allowing marketers to reach their target audiences on some level. In turn, audiences enjoy more control over how their data is accessed.
2. Improved customer engagement and loyalty
By leveraging blockchain-based solutions marketing teams can offer their customers more personalised and enriching experiences. More personalisation is a tried-and-tested method to increase engagement, and with the added layer of security and experiential marketing that blockchain can provide, marketers will be able to reap the rewards of long-term customer loyalty. An example of this marketing in action is Starbucks’ blockchain-based tracking tool, ‘Bean to Cup’, which allows customers to trace where their coffee comes from and virtually meet the farmers, all by scanning a code on their bag of coffee beans. This personalised experience not only educates, it also aims to build loyalty and brand trust.
Blockchain has the potential to completely transform loyalty programs themselves. A recent study from McKinsley found that only 62% of Australians use a loyalty program, and are more driven to change their purchase habits if they are able to redeem rewards quicker. This could be via dedicated blockchain loyalty platforms such as Loyyal, which allows customers to conveniently earn loyalty points across different brands at once, or via individual brand apps.
3. Improved transparency and brand accountability
Consider the Starbucks use case above and you can see another benefit for marketers. Self-accountability and transparency are critical for brand sentiment and audience trust, and blockchain-based solutions for product or service supply chains are great in helping to promote authenticity and connect customers more deeply to what you offer. Nestle’s pilot blockchain collaboration with OpenSC allows customers to find out about a product’s complete journey from source to store, addressing concerns about the brand’s sustainability commitment and use of palm oil. This track-and-trace model is a powerful marketing tool that maintains a brand’s reputation while building ongoing consumer trust and positive sentiment.
4. Minimise ad fraud
Globally, the cost of digital advertising fraud now surpasses that of credit card fraud. Verasity predicts that by the end of this year, advertisers will lose about $100 billion due to ad fraud. At a local level, 16th edition of Integral Ad Science’s Media Quality Report (2022) found that Australia experiences the highest desktop video ad fraud rates globally.
Marketers engaging in paid ad campaigns need to be sure their valued ad dollars are paying for genuine ad views, with as reduced ‘third-party’ costs as possible. Blockchain-based platforms such as AdsDax and even the increasingly popular Brave browser, promise advertisers that they will pay only for valid views, with audiences themselves being paid directly for their attention – will also mean a more direct pathway to warm leads.
No matter which way you look at it, the effects of blockchain tech on marketing are profound, significantly improving digital experiences for audiences and brands alike.
Renee Francis – Take3 and The Bubble Co.
Renee is the Founder and Director of marketing agency, The Bubble Co, and full-service Web3 agency, Take3. Catch Renee at this year’s Blockchain Week 2023, where she will join a panel of experts to discuss ‘Business on Blockchain – A Comprehensive Approach to Building, Investment, Marketing