How Blockchain integration is inducing value & personalisation in the market

Authored by Shiva Bhavani, CEO & Founder of Wing Communications.

Today, the usage of blockchain technology goes well beyond the straightforward exchange of cryptocurrencies and affects how we conduct business. The blockchain technology can store information related to supply, finance, and customer data which primarily makes blockchain important for brands today. After all, data is one invaluable aspect for businesses.

Additionally, blockchain’s remarkable security enables brands to set up a secured data network to capture and store customer data. It helps brands acquire the trust of their customers by offering security and transparency, which is not always as easily guaranteed as it seems, regardless of the size of a firm. This is the reason which is driving the growth of the global market for blockchain technology. Its market worth of US$3.4 billion in 2022, is anticipated to increase to US$19.9 billion by 2026 at a CAGR of 43%.

The way brands operate today has been irrevocably changed by technology. Among many, digital marketing and advertising have emerged as the first industries to fully utilise blockchain’s potential. Blockchain has had a big, positive impact on the marketing environment, making the future of marketing seem promising with the expansion of digital resources and decentralised technologies in place.

How Blockchain is Adding Value and Personalisation in Marketing

The spheres of digital marketing are constantly expanding and evolving, and the modern consumer is getting more engaged in today’s technologically savvy environment. This engagement together with a rising customer base has made it difficult for marketing industries to keep up with transparency, personalization, and rapidly evolving digital trends. Customers’ demand for more information is prompting digital marketers and behemoths to enhance their data privacy standards and adapt to new opt-out systems. This is where the invention of blockchain is leading the way.

Following are four main areas where the inclusion of blockchain is adding value and furthering personalisation:

Security

Blockchain caters to the modern customer’s needs by transforming the banking industry and improving data-sharing in the corporate environment. Its decentralized structure enables consumers to know exactly what data is being collected and the associated transparency inculcates a sense of security among them. The public accessibility of the transaction ledger also adds another level of accountability. It guarantees that companies and marketers are using customer data ethically and responsibly.

Click fraud, a recent phenomenon, has been one of the security challenges of today's marketing and advertising industry. By enhancing click authentication, blockchain technology seeks to reduce some of the hazards brought on by the surge in click fraud. It helps marketers in fighting fraud and increase brand recognition by providing transparency and data protection. Blockchain’s immutable and incorruptible qualities make it highly safe to use, prevent data from being manipulated, and reduce the danger of hacks. It offers advertisers a means of auditing and verifying information about their advertising efforts.

Forecasts for personalised marketing

Prioritising customer retention is crucial to see value and conversion rates climb in today’s crowded e-commerce landscape. To develop the ideal campaign for their target audience, marketers continue to keep and use consumer data, whether it is through enhanced personalisation or the development of loyalty programs. Today’s digital world contains enormous volumes of data, including information on clicks, customer ratings, customer reviews, likes, comments, shares, and other consumer behaviors, both related to one's firm along with competitors.

By enabling marketers to monitor keyword positions on all devices and in any location and accessing actual numbers, it helps them run more precise, personalised, and data-driven marketing. It collects information beyond what cookies are capable of and with the democratisation of data, it mandates marketers to think of novel methods to engage with customers in a way that improves their overall experience. Blockchain is changing the way that digital marketing is done by requiring businesses to pay consumers for the value of their data.

Smart contracts

Blockchain provides smart contracts that help in overcoming copyright or licensing concerns.

Smart contracts, which are already becoming more prevalent in the B2B sector, employ blockchain to verify and authenticate each contract before linking it to every transaction associated with it. Brands can transact with complete transparency for money, stock, or anything else of worth. This also paves the way for brand-to-brand cross-promotional marketing and applies to social media platforms as well.

Additionally, marketers can give buyers a chance to track brands and determine whether they are keeping their promises owing to blockchain’s transparency and traceability features.

A business may be able to assume the position of a trustworthy third party by utilising blockchain technology and smart contracts. Contractual declarations that are already in existence will be made if one party fails to perform their obligations under the agreement. As a result, if a product is not delivered as promised, the other party may instantly get their money refunded. A smart contract can work as a programmed, irrefutable contract that manages the settlement process.

Customer trust

Marketers can fully avoid ad networks by using blockchain. Blockchain establishes a confirmed and trusted chain from the advertising money to the end user, so businesses won't need a third party to establish trust. Blockchain advances online direct-to-consumer marketing by significantly improving targeting and personalization accuracy.

Removal of middlemen

Overcharging and underperformance are prevented by using the system to control budget spending, get rid of middlemen, and stop fraud.

Conclusion

Blockchain may be relatively new to the corporate world, but has the potential to permanently alter customer interactions and data collection practices in digital marketing. Marketers may anticipate more consumer interaction with their brands with decentralised data sharing and increased consumer-business openness, which is furthered by blockchain.

In short, utilising this technology now will enable companies to launch service expansion and engagement in ways that haven't been completely considered up to this point but contain the potential for the future. Because ultimately, long-term retention will come from showing alignment with the future.