Blockchain and Marketing

  • Marketing is all about how we approach customer’s insights and how we position our brand according to that. The blockchain can gather, check, store and update vast databases of little human interventions. Since data driven marketing strategies are poised to be key priorities for brands, blockchain is the perfect platform to achieve this.
  • With data breaches becoming more frequent, businesses need to prioritize protecting customer data. The introduction of GDPR in 2018 brought about stringent guidelines for brands when it comes to gathering and using customer data. Therefore, brands have been looking for solutions that would enhance customer data protection. Blockchain comes to the rescue here by enabling users to either anonymize their data or sell their information to brands they choose.
  • Reward programs are one of the most obvious things in marketing to increase sales, and blockchain provides entirely different ways for applying rewards. The distributed ledger technology can be used to automate the payments on any scale, allowing brands to send micros-amounts of rewards to the customers. This will have massive implications, as instead of physical cards or online wallets that have limited capabilities, the amount can be directly and securely transferred to a customer’s account without involving a middle layer like banks. Customers don’t need to wait to cross a threshold of actions or transactions on interactions with the brand to receive monetary incentives no matter how small the interaction is.
  • One of the major focus areas of blockchain technology in marketing is AdTech. This is one of the prime candidates for moving to the distributed ledger, which is transparent, secure and accountable, because there are many types of micro-transactions that go into managing digital ads.
  • Reduced Costs: Block chain, as a decentralized and peer-to-peer technology, an enormous amount of costs can be cut down because we are essentially removing third parties from the equation due to smart contract execution.
  • Audience Targeting: As marketers, we are very disappointed to see failed results of our marketing campaigns. By decentralizing the advertising ecosystem, brands can directly connect with the right publishers and take their message to the right audience.
  • Increased Efficiency: Activities involving paperwork tend to be time-consuming and tedious. The involvement of middle layers, like banks for payment, causes further delays process. Blockchain tackles this problem by enabling transactions to take place in real time. Since the information is accessible to both parties, it is not necessary to maintain separate records. Again, the implementation of smart contracts facilitates immediate payment as soon as the terms in the agreement are met.
  • Decentralized Applications: The rules are dictated by the owner of the applications. Since no single authority governs decentralized applications like blockchain, there is no “my way or the highway” approach.

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anup ranjan

anup ranjan

MBA Candidate|Search/content architect |Certified BlockChain expert