What Marketers Should Know About Cryptocurrency

Cryptocurrencies are here to stay, and they have been causing stir ever since they appeared. We witnessed a surge in value of major cryptocurrencies which made a tremendous impact on the world of business,  economy, and marketing. Although we’re still at least a couple of years away from experiencing all benefits of this technology, marketers need to start paying attention to cryptocurrency and factor in changes it will bring to their industry. 

Cryptocurrency 101

Cryptocurrency is actually a digital asset based on the blockchain technology. This basically means that all transactions are recorded in a huge digital ledger, and this database is shared and transparent, meaning that all users can keep track of every transaction. A thing that still sparks controversy is that the blockchain technology and cryptocurrency aren’t centralized – the database isn’t stored in a central computer or on a server. Instead of that, it’s shared among a network of computers throughout the world, which means that governments can’t access it. What’s also revolutionary about this system is that it practically can’t be corrupted or compromised because users can make transactions anonymously. For example, you can buy Dash or any other cryptocurrency anonymously, but this transaction will be recorded and visible to all other users, which protects you against identity theft and keeps your assets safe. 

What does this mean to marketers?

Nowadays consumer data can easily be obtained and manipulated by social media platforms, but once cryptocurrency becomes more widespread this practice will change. The very fact that all transactions are anonymous will make it more difficult for marketers to obtain and analyze consumer information. And if we bear in mind that a great deal of marketing heavily relies on consumer research, and understanding consumer spending habits and preferences, it’s clear that marketers need to find another way to collect the information they need. It will also change lead generation process because it will be much more complicated to establish who buys what and which channel is best-performing in terms of conversion. 

Is there a solution?

Luckily for marketers, there is, but it costs more than the traditional way of obtaining information from Google or Facebook. Instead of this practice, marketers will have to resort to paying users directly in order to be able to get and use their personal information. In other words, marketers will have to get in touch with consumers directly, engage with them on a more profound level, and offer them money in exchange for their feedback. This will be complex since companies will have to make an extra effort and reach out to their potential customers, while customers will be more in control of their personal information. This means that they will not always agree to sell it, or that they will ask for significantly more money in order to say yes. However, the upside for companies will be that if someone is willing to provide their information to them, this means that they’re interested in that particular company or brand. 

Since these digital trends are still in their infancy, we can only make educated guesses about the possible impacts cryptocurrency will have on marketing. One thing is for sure, all these changes won’t happen overnight, so it’s a good idea for marketers to start learning more about cryptocurrency and exploring their options. 

 

Carolin Petterson is a Business Lady/Content Marketer and contributor for a number of high-class business and marketing websites. You can read more about her at:

https://twitter.com/carolinpetterrs

https://businessingmag.com/author/carolin_petterson/

https://www.relevance.com/are-cryptocurrency-payments-the-future-of-marketing/

https://www.timedoctor.com/blog/productivity-hacks-tested/#more-9969

http://startupily.com/how-to-generate-leads-for-your-startup/

https://www.techgenyz.com/2017/10/09/digital-marketing-traditional-marketing/