When you hear the term “blockchain,” the first thing that probably comes to mind is cryptocurrency. You are not alone. Many still believe that blockchain only has to do with Bitcoin or Ethereum. But it has expanded its scope of application and is currently making significant waves in other business operations.
Aside from ensuring transaction security, blockchain is also disrupting digital marketing and advertising, essentially leveling the playing field between large enterprises and small businesses. How? We listed five ways blockchain marketing can help small businesses below.
Blockchain marketing provides additional payment modes.
One of the significant issues that small businesses face when starting is the limited number of payment methods. Consumers don’t want to use their credit cards to buy stuff online for fear of data breaches.
Using blockchain can entice consumers to buy from e-commerce stores because the technology’s transparency and security have been widely proven. Accepting cryptocurrency payments would allow small businesses to assure customers that they would receive the products bought before the seller can get paid.
Retailers and suppliers never have to worry about stolen credit cards, chargeback issues, and forged checks.
Blockchain marketing lessens privacy abuse.
Consumers have become smarter over time. They know how important their data is and want to take back control. That is one reason why several data compliance and regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), came about. Users want to make sure that marketers aren’t using their private information without their consent. Small businesses can thus partner only with advertisers who can ensure consumer data is used with consent.
Blockchain marketing enables consumers to only see ads they opted to receive for one. Ad exchanges, such as AlgoriX, Smaato, Google, and Pubmatic, are compatible with blockchain use and so can be used to serve users the ads they wish to see.
Blockchain marketing does away with intermediaries.
Most small businesses fail at marketing because they don’t have enough resources to fund their campaigns. And those who take the risk and pay people to run their ads often fall victim to fake likes and followers.
Blockchain marketing assures small business owners that they will get returns on their investment because the money they spend on ads gets used on their target audiences.
Since they remove the middlemen from the equation, small businesses can directly deal with publishers. Making sure that their ad dollars are spent wisely is crucial for small companies trying to break into new markets, especially if they’re going against more established brands or industry giants.
Blockchain marketing promotes online anonymity.
While it’s true that more and more consumers buy online, many still limit their interactions with online shops to browsing. These consumers still visit a brand’s brick-and-mortar establishment to make a purchase. They are wary about how advertisers seem to be “spying” on their online activities, which is likely why Google plans to phase out third-party cookies.
Blockchain’s decentralized nature can help buyers and sellers be as transparent as possible to each other, which is crucial for small businesses trying to make a name in the industry. Sellers can see their customers’ browsing histories, but only if the latter lets them. Buyers can limit which retailers to grant access to their browsing histories for ad personalization—no need for cookie collection, which translates to less fear of being watched or spied on.
Blockchain marketing enhances a business’s sense of social responsibility.
Small businesses capable of showcasing their social responsibility can rise above the ranks quickly. Consumers prefer and are more than willing to pay a premium to brands that promote and support sustainable practices.
But most buyers find it hard to verify if a particular brand is genuinely socially responsible because they don’t have access to the company’s supply chain. Blockchain marketing has changed that. With blockchain’s help, buyers can look at their favorite brand’s supply chain to check if it sources raw materials ethically.
One example of this practice is Provenance. The startup created a prototype that uses blockchain to track its supply chain, showing what and where its product is made of. Through technology, tracking raw garments to consumer’s shelves has become possible.
Small businesses have a lot to gain from blockchain marketing. While it may take some time for the practice to become mainstream, those who can do it right now can benefit immensely.
Alexandre Francois is a serial entrepreneur and tech enthusiast who believes that knowledge about innovations and emerging technologies should be easily understandable and available to everyone. He is also the publishing director of Techslang—a tech awareness resource where AI, cybersecurity and IT are explained in plain English.