What do Walmart, British Airways, and Maersk have in common?
This is not a trick question. But you’re right that the answer has to do something with the type of technology that is being used.
Very few people know that these companies are already using blockchain technology to power their business.
Surprising, isn’t it? The reality is that blockchain is more than just a buzzword. In fact, this technology is offering an efficient, transparent, and secure platform that’s necessary for global trade.
The global blockchain market size is expected to grow at a CAGR rate (Compound Annual Growth Rate) of over 69% between 2019 to 2025, states Globe News Wire. Even though the financial sector is the leading investor in blockchain technology, other industries are actively working on incorporating it into their business structure. And now, this emerging tech is enhancing their marketing and branding efforts.
What Are The Principles Backing Blockchain Technology That Make It So Attractive To Businesses?
There are hundreds of blogs that can tell you all the benefits of blockchain. But just so that we’re on the same page, let’s take a cursory glance at the fundamental structure backing this emerging tech.
1. It is an open ledger
As an open ledger, transactions are visible to everyone. Every connection in the network has a copy of the transactions.
2. Offers greater transparency
Since information is shared and visible to all, there is more transparency. Everyone has access to the same document, and changes will only be made through consensus.
3. Decentralized power
There is no central authority to control the network. Therefore, no single individual or organization can manage transactions or manipulate the data.
4. Secure platform
As the name suggests, blockchain consists of a chain of information blocks that are linked to each other. Transactions are recorded in the form of hashes. Every block has the hash of its previous block, so altering data is next to impossible. And because the information is stored across a network of computers, it’s more secure, accurate, and consistent.
Hands down, blockchain is an authentic tamper-proof platform. Moreover, since access is granted to individuals that have permission, the chances of fraud and unauthorized activities significantly reduce.
5. Traceable actions
Time-stamping and hashes help to ensure data is unalterable and traceable, ensuring its authenticity. This places greater trust in the platform.
6. Fosters efficiency
Blockchain supports automation, allowing tasks to be completed quicker and more efficiently. Operations are streamlined, helping to overcome problems present in traditional processes, mostly human error. More importantly, everyone has access to the same data, speeding up all operations.
7. Peer-to-peer transmission
Traditional online exchanges require validation from independent, third-parties, such as a credit card provider. But blockchain requires no intermediaries because it ensures the integrity of data. So that means transactions and communication between the two parties are direct, making processes faster, more efficient, and more cost-effective.
Implications Of Blockchain Technology On Marketing And Branding
Based on the above features, blockchain has a lot to offer to the current business landscape.
But let’s take a closer look at how this technology is helping facilitate branding and marketing efforts.
1. Removes uncertainties
Trust poses to be one of the biggest challenges faced by businesses today. And as ecommerce begins to grow and establish itself, trust in business processes will become a determining factor in whether consumers want to interact with the brand.
This is one aspect the blockchain can easily resolve. The medium is built upon a transparent model that keeps data immutable, facilitating trust between consumers and businesses. And that helps to lay a strong foundation for long-term relationships.
2. Better data protection
As everything transfers onto the digital landscape, consumers are more worried about the security and use of their personal data. Marketers know that offering secure platforms for transactions is essential. And blockchain is a natural solution.
Even though information on the blockchain is available to the public, implementing proper encryption protocol can help keep sensitive data private. And since there are no third parties involved, blockchain-enabled browsers permit consumers to have greater control over their data and allows them to manage it according to their preferences.
3. Improves cost-effectiveness
In order for a business to remain competitive, it must be able to manage operational expenses and stay within budget. Since blockchain is built on a peer-to-peer network, it allows brands to deal with each customer directly. Transactions can be handled between the sender and the receiver, removing the need for third-party authorization to review or verify data.
This not only helps to make processes faster but it also substantially decreases overhead costs. According to Accenture, eight of the world’s ten largest investment banks can reduce infrastructure costs by almost 30% with the help of blockchain technology.
4. Offer a reliable platform for smart contracts
Smart contracts have picked up a great deal of traction in the B2B environment. With the help of blockchain technologies, authentication of contracts and linked transactions can be efficiently monitored and managed. Moreover, as an automated solution, there is no human intervention, so the process is faster, and there is less chance of human error.
This is opening up a lot of avenues for marketing, whether that involves cross-promotional processes between brands and influencers on social media.
5. Supports content licensing services
Often consumers have to pay for access to content with copyrights, such as music, videos, photos, etc. This practice ensures content creators are compensated for their work.
Licensing rights on the blockchain are helping these individuals keep track of their content.
6. Enhances brand communication
For quite some time, social media has dominated the way consumers and businesses interact. In fact, SMM has become the mainstream channel for online advertising. But while marketing on social media platforms offers a plethora of benefits, it comes with a hefty price tag. Because it’s limited to a few intermediaries, such as Facebook, who liaison between brands and the target audience. So the cost per impression for brands increases.
On the other hand, blockchain fosters direct consumer-brand relationships, helping to reduce the need for intermediaries. This improves strategies pertaining to personalization, targeting, and ad effectiveness.
7. Generates accurate information about ad-spend
Blockchain is helping to clarify details about online ad spend. According to the WFA report, ad fraud in 2016 was estimated to have cost $16.4 billion. New technologies such as blockchain can help tackle this issue. With a trusted and verified chain of information, brands can acknowledge where every ad dollar was spent.
8. Supports loyalty programs
Loyalty programs are not new. They’re an ideal way to entice consumers to continue interacting with the brand and repeat transactions. In fact, it’s one of the easiest ways to help a business grow.
But rendering a loyalty program through blockchain is a unique proposition. A retailer or a group of retailers could create their own token. As customers shop with these brands, they can collect rewards or points, which can then be applied towards a total bill, acquiring a discount, or claiming a prize.
Blockchains can ensure that information is readily accessible so that the rewards from one brand can quickly translate to others using the same loyalty program. And as tokens are universally exchangeable, they can be used anywhere across the globe.
9. Presents a unique branding method
Blockchain and crypto have a healthy relationship. So businesses are now using this as a means of offering ICOs (Initial Coin Offering) and improving their branding efforts. By introducing their own tokens, transactions can be carried out worldwide while also helping to expand the brand image.
Are You Ready To Embrace Future Trends?
The world is on the brink of a revolution. As new technologies merge with old processes, people will begin to adopt and implement a new way of conducting business. Robotic automation and Artificial Intelligence are already infiltrating our lives.
But blockchain is the future. And as a marketer, you need to hop onto the fast train of change. The US is the largest regional spender on blockchain solutions; investments are expected to reach $4.2 billion this year.
Even though the technology is still in its infancy, it continues to mature and offer solutions for today’s business world. It has the potential to carry data-driven marketing processes to greater heights. More importantly, the transparency and security that the platform was built on are laying the foundations for more applications in the coming years.
Final Thoughts
I hold a great deal of hope in blockchain technology. With the right applications, it can significantly improve current marketing and advertising practices. Businesses can also offer greater credibility and transparency, helping to enhance brand image. And that aligns with the core goals of all marketing and branding campaigns.
