5 Tips On Using Cryptocurrency To Improve Your Marketing Efforts
Have you thought about accepting cryptocurrency as a form of payment? Small and large companies alike are starting to make the transition, with brands like Overstock, Microsoft, Expedia, Newegg, and even Subway jumping on the bandwagon. Tech companies might see the advantages of having a more secure payment network, or might have leaders invested in the future of cryptocurrency—but there are also significant marketing benefits to reap by accepting cryptocurrency at your business.
The Basics of Cryptocurrency
In case you aren’t familiar, a cryptocurrency is a digital currency that normally relies on technology, called the blockchain, to record transactions in a secure, peer-to-peer (“P2P”) ledger. While the technical details aren’t vital at this stage, it’s important for individuals to understand what it takes to begin accepting this form of digital currency.
Bitcoin is by far the most popular name in the crypto world, but there are also “altcoins,” which present viable alternatives with perks like lower volume, lower transactional costs, or unique features, such as SmartCash, Ethereum, and Litecoin. Once you’ve decided on a selection of currencies to accept, you can start accepting payments using one of several methods. Crypto wallets, which let you store cryptocurrency and process transactions, can be used fairly easily, or you can go through a third party service provider, especially if you wish to convert to fiat currencies automatically.
I recently spoke with Blockchain advocate, Sarah Austin, who is a Forbes 30 Under 30 member, and a product marketing consultant to SAP, the $140 billion dollar software company. I tuned into her live broadcast from SAPPHIRE NOW, the conference attracting 30,000 attendees and customers with headliners such as Barack Obama, Charlize Theron, and opening keynote by SAP CEO Bill McDermott. Austin, also an accomplished marketer whose marketing campaigns have been recognized by Wired Magazine, The New York Times, and Sundance Film Festival, shared five of her top tips for how to transition a new business’s marketing structure into the blockchain and cryptocurrency space. With a background in machine learning and artificial intelligence, Austin recently co-authored an e-book with SAP Leonardo called “The Path To Digital Innovation”, which emphasizes the significance of adapting your business structure to today’s digital space.
Austin’s 5 Tips For Seamless Transition
When I asked Ausin why accepting cryptocurrency would be beneficial to the growth and expansive development of one’s business, she laid out five tips:
1 -Lower Transactional Costs
Ms. Austin says, “right now, crypto transactions are complex, and if you’re using an unfriendly middleman to convert your transactions to fiat currencies, you could pay a hefty amount—but on the whole, cryptocurrencies are designed to support lower transactional costs, since you don’t have to go through a bank to process your payment. Those lower transaction costs could help you offer a discount to your customers; advertising that you’re switching to a new system of payment that will allow you to lower your prices will be a popular point for your advertising campaign.”
2 – The Crypto-Community Welcomes It
If the cryptocurrency community finds out you accept their preferred currency, especially the ones around the cryptocurrencies you accept, they’ll go out of their way to support your business and promote it to their friends and contacts within the community. “Crypto enthusiasts are serious about making their preferred currency go mainstream, so they’ll be thrilled to hear your business legitimizing it. If crypto community members have a strong overlap with your target demographics, this could be enormously beneficial,” Austin explained.
3 – Competitive Differentiation.
Accepting any cryptocurrency could instantly differentiate you from your competitors, giving you one more advantage in the race to win more market share.
4 – Opening Up Media Coverage and Brand Awareness To A New Space
Deciding to accept cryptocurrency is a perfect opportunity to write and syndicate a press release. “Chances are, you’ll get some media coverage out of the deal—especially if there aren’t many businesses in your location or in your industry currently doing the same,” she said. This builds brand awareness and might help you reach some potential customers who might otherwise never have heard of you.
5 – Your Business Has The Potential To Become A Thought Leader
Many people see cryptocurrency as the currency of the future. “If your company is one of the early adopters of cryptocurrency, you’ll be seen as forward-thinking, and willing to take risks for the sake of progress. This reputation is beneficial to almost any brand, since it demonstrates you as a thought leader, within your industry” Ms. Austin told me.
How to Make the Most of It
Let’s say you’ve decided to start accepting cryptocurrency in your business. What now?
- Lead with an awareness campaign. Your entire campaign should start with an effort to raise awareness of the fact that you’re now accepting cryptocurrencies. Get a press release syndicated, adjust your signage to show your support, and send out emails and social media posts that broadcast your new acceptance.
- Cater to the crypto community. Don’t be afraid to get involved on cryptocurrency forums and other places of discussion; these are the best places to get in contact with crypto community members. The more active your brand is on these forums, the more attention you’ll bring yourself.
- Make references to your acceptance frequently. In your other marketing and advertising materials, make sure to reference the fact that you’re accepting cryptocurrency. For example, you could include a small tagline at the end of a video ad that states, “Now accepting cryptocurrencies like Bitcoin, Litecoin, Bitcoin Cash, and SmartCash for all payments.”
The cryptocurrency market is set to hit $1 trillion this year, so the risks are going down as the benefits continue to rise. If you want your company to be seen as an early adopter, you may not have much more time to act. There are plenty of benefits to be gleaned—in both your marketing and finance departments—so consider your options carefully. Austin will be speaking about this at Blockshow Europeand SAP SAPPHIRE NOW conferences next month.