Customer insights are key to successfully deriving value from cryptocurrencies.
HOW CAN CRYPTOCURRENCY DRIVE GROWTH FOR BUSINESS?
The key question businesses should answer before they start this journey is which form of cryptocurrency or digital asset is right for their business and customer base. More than 40 percent of customers who pay with a form of cryptocurrency are new to the company. This data shows that, by having a digital currency payment option available, businesses can increase both revenue and the size of their customer bases. Knowing their audience and how a decentralized form of payment fits with their customer engagement strategies will help with identifying whether the integration and deployment of cryptocurrency is the right choice for the stakeholders they serve or are trying to attract.
How Popular Is Cryptocurrency?
There are now 300 million crypto users worldwide and more than 18,000 businesses accepting cryptocurrency. Although some companies will adopt cryptocurrency as an element to their blockchain and web3 strategy, favoring existing currencies such as Bitcoin, others will broaden their approach, creating a metaverse experience of their own where they tap into new audiences in the virtual realm. Cryptocurrencies, blockchain, and NFTs are interlinked, allowing more and more businesses to open up to new markets in the metaverse.
Know Your Customers: Who Is Your Core Audience?
Keep in mind that your cryptocurrency- or blockchain-based strategies need to add value to your customer base’s experience with your brand. If they don’t, any investment you make here will likely be met with a lack of demand and frustration from your customers. For example, if your customers are over 50, then cryptocurrency might not be the best tool to grow with that demographic profile.
Companies can derive insights into customer desires by conducting speculative surveys on using Bitcoin or other cryptocurrencies as a payment method. Asking questions like whether customers would purchase goods and services or participate in promotions through crypto will provide invaluable insights and help companies shape their wider business strategy.
For brands with a robust younger audience, implementing cryptocurrency can be the right move to stay ahead of the competition. After all, 94 percent of crypto buyers are Gen Z and Millennials. Make sure to build a strong digital front-end for blockchain-based applications or micro-sites because the core audience for crypto is mainly drawn from these two generations, and they expect seamless and engaging digital experiences. Seigel and Gale’s World’s Simplest Brands study, in which 15,000 consumers were surveyed on brand experiences, showed that 76 percent of buyers are more likely to recommend a brand that delivers simple experiences. Cryptocurrencies should be no exception.
Interacting With Your Core Audience in a New Way
Understanding who your core audience is and what they want from a cryptocurrency experience is one side of the coin. The other side is how best to interact with this audience using these new tools as you embed them into your digital ecosystem. Brands that introduce cryptocurrencies and other blockchain technologies like NFTs will need to think about how to create marketing campaigns to drive new customer acquisitions.
For example, a company may launch an activation campaign that uses an NFT as a rewards card for a new loyalty program. In order to maximize the campaign’s potential, the company should create materials that explain how to use blockchain-based assets to get the most out of your experience with the business. Such a marketing push needs to reflect the brand’s voice while specifically targeting the customer segment most likely to use the new technology.
How to Use Cryptocurrencies as a Growth Lever
We’re starting to see three approaches to cryptocurrency implementation for businesses. The first approach is taken by brands who just want cryptocurrency enablement, dipping their toes into the water to enable them to do simple transactions. This is the most basic investment a brand can make to use crypto.
The second approach focuses on creating activation campaigns as a way to drive growth for existing experiences. These brands will still have their core channels such as their mobile app and website. They’ll additionally set up something similar to a metaverse booth, a microsite, which is separate but still linked to existing applications.
The third and last approach embraces the efficiency blockchain aims to create within back-of-house operations. Brands can choose to build a fully decentralized application to engage with customers on an Ethereum-based blockchain or build a private blockchain within their business for governance and efficiency purposes. As of now, only a few brands are so fully embracing blockchain, however.
With more than 68 million blockchain wallet users introduced to the market in the past year, businesses are starting to think about the integration of cryptocurrency in their daily operations and digital experiences. Research around customer expectations is necessary to paint a clearer picture of the demand for this new technology, on a case-by-case basis, placing pressure on business leaders to revitalize their brands' message going forward. With the focus on building seamless and engaging digital interactions for customers, competition is becoming ever fiercer for the customer wallet. Although much homework is necessary before companies take the plunge, the potential for reward is great.