How Blockchain has Impacted Relationship Marketing
Blockchain has the capability to change every aspect of our life with its decentralization properties. With Blockchain, users can protect and manage the access rights of their data with various brands hence giving new and unexplored challenges to marketers, writes, Sourodip Biswas, Digital Marketing Expert, Space-O Canada.
The biggest challenge that marketers face, whether digitally or traditionally, was keeping the customer engaged to their platform. Yes, it was not only difficult but very critical to achieve your business goals.
Technology has brought in the necessary support that will help these marketers with their strategies, and effectively reach out to the audiences.
With Big Data and AI, the marketers can understand their audience, build the necessary insights, and bring to the table a winning strategy that will not allow your business to fail in the eyes of the consumer.
However, despite the growth in technology, the user is still worried about how the data is used, and who is able to view the details. The privacy concerns are growing with the increase in the media type and communication channels.
Blockchain will help in gaining the customer’s trust, so that you receive the apt data, and ensure that the relationship is maintained. For every marketer, it is important to build a fulfilling and long-lasting relationship with the customer, so that you don’t need to keep investing in acquiring new customers.
Let’s explain the data and how it comes from different channels.
There is no single point where the data is taken by the marketers. Social media, word of mouth, traditional print media and even the various point of sales act as a medium of data. Every interaction data is considered unique, and with connected devices, you are bound to get more data.
GDPR has been imposed to protect the data and its possible violation. However, it does not seem to give relief to the customers, who are constantly worried about losing control on their data, and the eventual misuse.
How Blockchain Can Overcome the Challenge?
Data centralization is core to digital marketing driven by data and analytics. The vulnerabilities of this data can be removed by the decentralized, and distributed ledger technology Blockchain. The security risks are taken care of by this technology, which also increases the transparency and traceability of the data.
Apart from the security of the data, there are concerns related to the overall cost of analysis, storage and retrieval of data. As you need to offer something in return for the data available to the intermediaries such as Google and Facebook, you end up spending a lot of money. The ROI is negligible against the spending in certain cases, specifically from these channels.
However, with Blockchain you can get your hands on the data without considering these middle channels. You own your personal data, and the scope for manipulation of this data reduces tremendously.
As a marketer, you reduce the spend but, you also empower the consumer with a choice on sharing the data. The consumer gets the veto on the data that can be shared, and the ones that should be private. It works as a win-win situation for both, and eventually you get to score trust with the customers.
Apart from this, you can also ensure that the reviews and the ratings offered to a particular product are genuine. Blockchain will disregard all the false reviews and will keep only the genuine ones in store. This will build the brand’s credibility and the trust factor among the audiences.
Boosting Customer Engagement
Customers don’t want to be stalked at all points and relayed information accordingly. They may want that but, they don’t trust all brands with their data.
With Blockchain, customers gain complete control over their data.
Let’s say, your customer visits Amazon and browses for speakers. The customer will have complete control over the demographics, the behavior and the browsing patterns that they observed during their time on the website. If the customer wishes, they can share the same data with your brand, and make it easier for you to carry out promotions for your product.
This eventually reduces the intrusive marketing that was annoying your customers and gives way to the trust-based marketing techniques.
If the customer trusts your brand to protect their data, they will share it with you. this also means they are interested in the product or service portfolio you have designed for them.
The data that you get from the customer helps you understand what is relevant to the target group, and which customers are actually potential leads for your brand. It helps improve customer targeting and marketing for the business.
You not only get the customer’s trust, but also win over their data from them which increases credibility, and the eventual conversion rate for your business.
For instance, if you are into speaker business, and you have been offering great products with better price dynamics, then the customer who has been browsing the speakers on Amazon will share this data with you.
You will have a better idea of what they are looking for, and it will help improve your products and marketing practices.
Eventually, your messaging and the timing will be right and lead to eventual conversions.
Top Considerations for Marketers
Every little change in your life comes with certain challenges, and Blockchain-based marketing also redefines the challenges for the businesses.
You ought to rethink your strategies and implement creative methods of reaching out to the customers. You will need to offer incentives to the customers so that they share the data with you. you might want to opt the smart contract method or reinvent the loyalty strategy for your business if you want to improve the quality of customers and increase the overall conversions.
Apart from gaining trust and credibility, you will also gain an increase in customer engagement and conversions for your business.
Blockchain is still in the nascent stage, which means you cannot ignore the fact that it will take time for you to implement this structure to your marketing efforts. It is also one of the main reasons why marketers are still wary about using it, as they don’t know the implications it will have on the users.
However, if the road to Blockchain implementation is made smooth and easy, then more people might implement it, and data vulnerabilities can be reduced eventually.