Blockchain technology applications in various industries

Blockchain technology applications in various industries

Previous blockchain blogpost:

Bitcoin can address the cash flow problems that many marketing agencies face. One of the challenges every business face is cash flow, and marketing agencies are not immune to it. Bitcoin is the solution. It has some financial benefits and less tangible advantages. The company who accepts the payment can either use a third-party to convert the Bitcoins into cash or withdraw it in the form of Bitcoins. Getting started is super easy. There are plenty of companies help businesses that want to get Bitcoin set up as a payment option.

Blockchain technology applications in various industries

The novel technology called blockchain is making waves and is the new change on the horizon. Although it is already in the financial world, the uses of blockchain technology are far more wide-reaching. It is shaking up many sectors along with all industries including supply chain, corporate responsibility, fashion designing, and digital advertising.

Supply chain sector

WALMART IBM

WALMART IBM Source: Unlock blockchain

The problem that large food companies face is trust issue because their customers are skeptical of many things such as where their food comes from and the factory conditions. It is the job of the marketer to build trust to be able to sell the product successfully. And transparency about the product is the quickest and the surest way to gain that trust. For example, Walmart used a strategy to bring a certain level of transparency in their logistics and supply chain. They enabled their customers to track digitally from where the products came. The goal was to boost the trust of Walmart consumers in their products. This strategy of storing products through blockchain makes room for transparency and prevents tampering. Some services such as Metamask and Keybase already offer the user control of their transaction history and identity.

Earth with Tree between Hands - Ecology Concept

Earth with Tree between Hands – Ecology Concept

Corporate responsibility sector

Sustainable practice is something that customers used to take on the organization’s word. Regarding such initiatives as corporate social responsibility, there used to be no accountability. Blockchain can generate digitized agreements, wherein the company is then held accountable by making these promises public.

Fashion designing sector

VeChain-End of counterfeiting

VeChain-End of counterfeiting Source: The complete coin guide

Innovative ideas are coming through in the fashion industry using blockchain. Shanghai-based Vechain is authenticating fashion products and providing a background of the items using blockchain technology. At Shanghai Fashion Week, Babyghost provided a link between the fashion and digital worlds. The customers can verify if a particular fashion item is genuine or not by scanning the tag using blockchain, and even see where it came from as well as who had previously modeled it. Verification of the authenticity of the products can be traceable from the point of origin. This feel to each product allows the customer to create a unique connection with the item. Thus blockchain can tap into authentic advertising without being seen as marketing. The possibilities are endless for those marketers innovative enough to jump on the bandwagon.

Digital advertising sector

The advertising and marketing industry is not only dynamic but also susceptible to change. Intrinsically, it fluidly adapts to the shifting focus of consumers and new technologies. The blockchain comes into this arena by creating more value for ad campaigns. For advertisers and marketers, the future could be different on many fronts and applications. They include permanent contracts with consumers; verification of ad delivery; and handling consumer data transparently. This surge shows how much commotion is happening right now in the digital marketing industry. And it all boils down to an increase in the profit margin and a decrease in extra costs.

Intermediaries made redundant

The middle person plays a significant role in the world of digital advertising and marketing. However, the companies investing are hardly getting even half the value because of the intermediaries involved. The technology of blockchain solves this by proving that users are real, eliminating the need for a mediator for advertising. So, companies can now communicate directly with the site owners when they publish an ad.

New blockchain browser

The Brave browser built on blockchain has ad-blocking software that blocks intrusive ads and trackers. The blockchain browser allows screening of those ads that do not respect people’s privacy. It has introduced the Basic Attention Token, which brings the digital marketing model to a simple framework of users, publishers, and advertisers, without the intermediaries taking a cut. This software can anonymously track the sites that are of interest to a particular target market. Brave creates a win-win situation whereby the advertising agencies can target the ads directly to the end-consumers, and people can choose the level of exposure to these ads and also get paid for it.

Unified customer profile

In marketing, the process of gaining a customer profile comes in dribs from third parties such as Google and Facebook. But the novel way of doing things would provide marketers with an integrated profile of the customer. That way, marketers will have to prove their customer relationship value and find advanced ways to engage with them.

Future of marketing

The way forward is to balance advertising and marketing with consumer identity concerns. In the new era, marketers will have to earn the permission of the customer in a completely different way. So, in the future, the marketer will have to pay the user to see their advertising material. For example, when a company approaches a user to subscribe, the company will be asked to pay the customer a certain price for that info. It would be in crypto payments, which would then go through a cryptocurrency, like Bitcoin.

Bitcoin branded company

A brand that embraces cutting-edge technology is one that is innovative and edgy, one that other companies might want to copy. It is possible to create a whole strategy around this and gain coverage that will put the company in the middle of conversations and generate intrigue and curiosity around the brand. There is also the opportunity to become a go-to expert by producing informative content around this topic. The way it could work for a business is by first learning how to source Bitcoins, and then deciding whether this is the right fit for the company.

Receiving Bitcoin tokens

To accept Bitcoins, all that is needed is a Bitcoin button at the checkout and a digital wallet. It works like a cycle whereby the publishers and users receive tokens when they view the ads. From there, the users can opt to donate them using blockchain all the while making it reliable and private.

Coming up next:

We are experiencing a significant shift in the real estate industry, as more and more people are engaging in property transactions using Bitcoin. Many industry experts are excited about the potential for digital money and the blockchain technology when it comes to real estate. But although digital currency transaction is the future, industry insiders say that we are not quite there as yet. Digital money analysts are less convinced that the property market would more widely adopt the cryptocurrency.

Marketing agencies gain by accepting Bitcoin

Marketing agencies gain by accepting Bitcoin

Previous blockchain blogpost:

Blockchain transforms not only sectors such as security, health, and finance but also many basic tenets of marketing. However, not much discussion goes around as to how blockchain would upend the role of advertising. Nevertheless, advertising industry will be one among the first that blockchain technology would disrupt. It digitizes touch points, makes digital payments, creates meaningful value, builds trust, and decentralizes advertising concepts. Marketers who recognize this will have a lucrative opportunity in front of them and an edge over others. Hence for salespeople and marketers, it is worth spending some time to understand the changes happening in this arena.

Marketing agencies gain by accepting Bitcoin

One of the challenges every business face is cash flow, and marketing agencies are not immune to it. With most agencies getting paid on a monthly basis, shortening the payment cycle can improve cash flow. Different ways such as providing clients with a menu of payment options to changing terms can accomplish this. Most agencies opt for the former, choosing to offer the option of paying via credit card, direct bank transfer or cheque. Although these are all very convenient, there are risks and costs associated with each.

There are risks and costs associated with each payment type

There are risks and costs associated with each payment type

Credit card transactions

For credit card transactions, merchant fees are typically around 3%, which can be high for clients on huge retainers. Moreover, credit card companies hold payments for up to three days before they transfer it.

Direct bank transfer

For direct bank transfer from one account to another using electronic methods, usually, there is a flat fee levied on each transaction, making them affordable for the sale sizes most agencies process. But while costs are less expensive, the time to process a bank-to-bank transfer is longer.

Payment using cheque

With cheques, although there is no cost to process them, there is a significant delay in getting paid. From the time it takes to mail it to the time the bank clears the payment, it can take a couple of weeks to see the amount hit the bank account.

Payment option challenges

Both direct bank transfer and credit card transactions sometimes incur disputes or chargebacks from customers. They may claim that the charge was unauthorized, false, or that the bank misappropriated the information of the account. When this happens, marketing agencies have no choice but to absorb the financial loss. Also, organizations that accept direct bank transfer or credit card payments are obligated to safeguard the payment information of the clients, and if they mishandle this, it can be a severe risk.

Bitcoin

Bitcoin

Bitcoin offers solutions

For marketing agencies struggling to increase cash flow and reduce risks, Bitcoin is the solution. There is no risk in accepting Bitcoins but an advantage regarding improving the cash flow. Since the emergence of Bitcoin in 2009, it has grown to become the most extensively used cryptocurrency in the world. Vendors including Amazon, Overstock.com, Dish Network, Target, Dell Computers, PayPal, eBay, Expedia, the Sacramento Kings, Home Depot, Kmart and Sears now accept it. Bitcoin payment solution also has some financial benefits and less tangible advantages.

Great financial benefits

Marketing agencies that get paid via Bitcoin can either accept actual Bitcoins or merely turn them into cash using a third-party payment processor, much like credit cards do. From a risk standpoint, the former approach is much safer because there is virtually no exchange risk when using a third-party processor. There are no processing fees unless the transactions exceed a high amount. There are no chargebacks either because Bitcoins are push transactions, meaning the buyer initiates them.

Less tangible benefits

Marketing agencies should consider accepting Bitcoins because there are non-financial benefits. Agencies get paid faster because payments are processed immediately without any delay. Also, the agencies do not need to safeguard or hold sensitive customer payment information such as bank account or credit card numbers because of the push nature of the business. Therefore, the marketing agencies are not at risk of confidential information being leaked, stolen or hacked if it experiences a data breach. And converting them into cash eliminates the risk of fraudsters taking the Bitcoins through a cyber attack.

Easy payment form

Chief amongst the reasons to accept Bitcoin, as one of the accepted forms of payment, is customer satisfaction. Marketing agencies can allow their clients to pay for the services in the way that is most convenient and easiest for them thereby offering them more options.

Capture lucrative customers

While people have not widely adopted Bitcoin the way they have done with credit cards it is prevalent amongst high-tech and dot-com firms, which can be very profitable customers for the agencies. There is a growing but small cadre of advertising and marketing agencies that are accepting Bitcoins such as Quintain Marketing, 5ivecanons in Jacksonville, Florida, and DiMassimo Goldstein in New York. Because there are so few of marketing agencies that are taking Bitcoin, those that do are enjoying a significant amount of press coverage.

Bitcoin

Bitcoin

Processing Bitcoin payment

Blockchain has various uses, but it becomes technical when it comes to how it works and what it is. When someone wants to pay using Bitcoins, they must initiate it using a private key. The company or person who accepts the payment can either use a third-party to convert the Bitcoins into cash or withdraw it in the form of Bitcoins. Once Bitcoin has been initiated and processed, it cannot be refunded or taken back.

Get set go

Getting started is easy and fast as there are plenty of companies helping businesses that want to get Bitcoin set up as a payment option. These companies help businesses to navigate the unfamiliar process of establishing a Bitcoin account. They will then connect the company with a third-party processor that will convert the Bitcoins into cash, which then gets deposited into the bank account. Among the most popular payment processors include Bitpay, Coinbase, and GoCoin. To help simplify the process, take some time to check out their sites, and if possible, work with a local agency. That way, there will be someone to turn to for help for quick answers to questions in this unchartered territory. 

Mass adoption challenges

The most significant problem with the mass adoption of Bitcoin is that people do not have a clear understanding of how it works. They cannot even comprehend what it is. Furthermore, Bitcoins have been used to facilitate black market or illegal transactions because they are non-refundable, difficult to trace and are not regulated by any central authority. As a result, the news in the mainstream media channels surrounding Bitcoin has been negative. This bad publicity has led to the hesitation on the part of many companies to accept it as a payment form.

Coming up next

Blockchain is the new change on the horizon. It is already in the financial world. But the uses of blockchain are far more wide reaching. It is shaking digital advertising firms. It is also becoming prevalent in many other sectors in all industries including supply chain, corporate responsibility, and fashion designing. To accept Bitcoins, all the marketing firm needs is a Bitcoin button at the checkout and a digital wallet. It works like a cycle whereby the publishers and users receive tokens when they view the ads.

Marketing agency CEO explains how some leaders are getting bamboozled

Marketing agency CEO explains how some leaders are getting bamboozled

Learn how to organize your marketing team around
a simple, effective and repeatable process that is
sure to produce more leads, higher sales and a stronger brand. 

In the upcoming SMEI webinar on April 24, 2018 “Marketing Made Simple: The SAM 6® Process,” Lonny Kocina will take you through a step-by-step process which is the subject of his best-selling and award-winning book, The CEO’s Guide to Marketing; The book every marketer should read before their boss does.

After 30 years of running his company, Media Relations Agency, Kocina says, “Most companies have a marketing problem and it’s a big one. A real money-sucking doozy. The problem starts with most marketing teams knowing a lot less about marketing than they let on. So much so, that most CEOs would be shocked. And because marketers lack a clear understanding of the basics, they aren’t able to create a simple, effective, repeatable process.”

That means your organization could be losing money and missing out on growth.

“SAM 6, short for Strategically Aimed Marketing, is about developing a common language around a shared process that will help solve marketing problems quicker and produce superior results,”  says Kocina. “The SAM 6 process gives marketers peace of mind because everything runs smoother. That’s what having a good understanding of marketing and a good process will do for you. Everything becomes much less ambiguous. You will feel confident and in control. With the SAM 6 process, every single marketing promotion you do will be on point.”

Learn more by joining the SMEI Webinar on April 24, 2018.

Photo by Victoriano Izquierdo on Unsplash