As we have witnessed over the past several months, cryptocurrencies are seriously shaking various industries and economies. They are very unlikely to disappear, but which of them will make the cut and how they’ll be used remains to be seen. However, we know that they are here now and that they are here to stay.
While many people are still puzzled by the very notion of cryptocurrency, others are trying really hard to get acquainted with the technology, as well as the risks and benefits involved. The marketing world is no exception, and those involved in it should really pay attention to cryptocurrencies since their impact can be even more significant in the future than it is now.
What is cryptocurrency?
To understand how important it might be to you, you should first become familiar with the concept. Cryptocurrency is a type of blockchain technology, which bitcoin and other distributed ledger systems are based on. It represents a huge ledger of transactions, and as such, it is an open and shared database. Since the operations are completely decentralised, users are able to transfer and add information anonymously, without any security compromises.
This financial system is most famously represented by Bitcoin, which can be used to pay for an item online, just like a traditional credit card. Naturally, not everything can be bought using cryptocurrencies still, but the trend is showing that they will be more widely accepted in the future. Although marketing and advertising are still not so directly affected by this new technology, it’s a good idea to follow trends and be aware of what is happening in the world of business, and there haven’t been many changes recently that have resonated more than cryptocurrencies.
Anonymity and what it means to marketers?
The importance of collecting data on consumers is known to every marketer. Whole advertising strategies are based on this type of information and the more you have and know how to use it, the better your strategy could be. Since one of the most attractive features of cryptocurrencies is anonymity and people are becoming increasingly reluctant to reveal their personal information online, it makes perfect sense that more and more of them will be turning to digital currencies in the future.
Every marketer should be concerned about how they are going to collect such huge amounts of information on prospective customers and attract leads. The information that is now sold by various platforms is used to target specific groups, run tests, and advertising campaigns, predict customer behaviour, etc.
If the trend continues and more and more people start using cryptocurrencies for their purchase, it would be almost impossible for marketers to find out who bought what and they’ll also be unable to get almost any feedback on their strategies and tactics. Clearly, this is threatening to become a major game-changer and if you’re not ready to embrace the change, you’ll be out of the game in no time.
That’s why now is the time to come up with alternative methods of collecting information, which can be used for making informed decisions. Otherwise, marketers would be running a risk of failing to appropriately respond to customers need.
How to attract attention and obtain information?
The answer is quite obvious: it’s likely that they’ll have to pay users directly if they want to get the necessary personal information. This will undoubtedly increase the cost of every campaign, which should also be reflected in the final price of products and services.
The fact that users have control over networks, i.e., that no one can own a network, means that companies won’t know who their customers are anymore if some predictions come true. With the number of people who buy and sell digital currency rising, it seems that businesses will have to take a much more active approach when it comes to reaching out to customers and start asking users for permission to engage with them.
With a great majority of people refusing to invest any of their time or personal information unless rewarded accordingly, businesses will have to be very smart when it comes to finding ways to establish contact with customers. This will undoubtedly mean that the price businesses you will have to pay will soar, but on the bright side, it might suggest that those who accept to share the information will be much more likely to buy the products or services offered by the business.
It’s very difficult to predict exactly what is going to happen with cryptocurrencies and what role they’ll have in the future in relation to marketing. However, neglecting their existence and the fact that an increasing number of people are using them may seriously jeopardise different types of businesses.
Marketers are known to be those who are always up-to-date with the latest trends in almost every field, because the success of their work is directly related to following trends. That’s why it is important for them to prepare alternative strategies for achieving their goals since the rules of the game might change completely. Being unprepared for such a scenario is not only unwise, but it can easily be the end of those who are taken by surprise.
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