What comes to your mind when you hear the word blockchain? Perhaps the first thing that crosses your mind is cryptocurrency. And you’re definitely not alone. Most people still associate blockchain with cryptocurrencies like Bitcoin and Ethereum. But this technology has widened its scope of application and is today redefining a variety of other business operations. Besides bolstering transaction security, blockchain has created a level playground for both small businesses and large companies by transforming advertising and digital marketing. Here are 5 ways blockchain marketing helps small businesses.
1. Increases the Number of Secure Payment Modes
An inadequate number of secure payment modes is one of the main challenges that small businesses continuously grapple with during their formative years. Due to the rise of cybercrime cases such as identity theft and data breaches, consumers avoid using their credit cards to pay for items online. But by adopting blockchain technology that enjoys widespread transparency and security, small businesses can compel consumers to purchase from their online stores.
Small businesses that accept cryptocurrency payments will give customers peace of mind from knowing that they’ll receive their purchases before the payment is forwarded to the seller. That way, even issues of chargebacks, stolen credit cards, and forged checks will be eliminated.
Also Read: Blockchain and how it can change construction
2. Eliminates Middlemen
Most small businesses also face a challenge when it comes to marketing due to the limited resources for financing their campaigns. Those who attempt to market themselves and their products mostly pay influencers to run their ads. Some of these influencers have fake likes and followers, and their main intention is to con unsuspecting business owners of their hard-earned money.
Blockchain marketing offers small businesses decent returns on their investment (ROI) by positioning their ads directly in front of their target audiences. By eliminating intermediaries, blockchain marketing enables small businesses to work with publishers directly.
3. Fosters Online Anonymity
Although the number of consumers buying online has increased tremendously over the years, there are still those who restrict their engagement with online stores to browsing. These consumers still go to a brand’s physical establishment to buy stuff. They’re worried about how some advertisers appear to be monitoring their online activities.
Thanks to its decentralized nature, blockchain introduces a high level of transparency between buyers and sellers. Remember transparency is an important aspect for any small business trying to make an inroad in a new market. Blockchain gives customers the power to decide which retailers can see their browsing histories.
Also Read: Can Blockchain Technology Facilitate Better Land Governance in India?
4. Improves Customer Data Security
Blockchain marketing facilitates effective identity management. Given that customers have digital IDs, verifying their identity is a cinch. Customer data is also stored on a safe and secure blockchain network, reducing the risk of unauthorized access, identity theft, fraud, and a host of other cybersecurity issues.
Small businesses have full control of their sensitive customer data, as the information stored on the blockchain can’t be hacked into, stolen, or altered. Clear and transparent transaction records allow business owners to view how their relationship with their customers has grown over time. Blockchain technology also enables small business owners to recognize loyal customers, keep track of their spending patterns, and progressively grow their customer base.
Pro Tip: Small business owners can keep blockchain technology decentralized and secure by running it on a mini-computer like Raspberry Pi 4.
5. Facilitates Tailoring of Ad Campaigns to the Target Audience
Tailoring an ad campaign to the target audience improves the rate of conversion. Blockchain marketing helps small businesses customize their ad campaigns to resonate with their target customers. Audiences that share similar traits are placed in the same group and an ad that meets their unique needs and preferences delivered to them. That way, small businesses get peak conversions from their limited budget, leading to an increase in sales and profits.
Blockchain marketing also provides accurate data that allows small businesses to effectively engage their target audience. It also enables them to design better campaigns, which result in credible and identifiable leads and subscriptions.
Also Read: How blockchain is improving the agricultural supply chain
The Parting Shot
Small businesses have a lot to gain from blockchain marketing. From providing additional payment methods and fostering online anonymity to taking intermediaries out of the equation and improving data security, blockchain marketing has endless possibilities and opportunities. It’s now the right time for small businesses to harness the opportunities that this innovative technology has to offer so that they can stay ahead of their competition.