Blockchain has become a very popular talked about topic nowadays, where some call it “the 5th evolution” of computing. Yet many do not understand it or understand how it affects them or their businesses.
Blockchain can be simply explained as an electronic journal ledger for recording and keeping track of transactions between different users, It’s a decentralized network system. It has some security features that can help protect those involved in any transaction done through it. It makes it impossible to tamper with the records kept.
Blockchain has affected many who are involved in the business world and others such influencers and affiliate marketers and how they interact and operate within the blockchain network. Interested? Keep on reading
How Blockchain affects Influencer and Affiliate marketing?
In our present time, we hear the word “influencers” and “micro-influencers” frequently. But what are they? An Influencer is a social networks user who has a large number of people following him/her. Micro-influencers are influencers with a smaller number of followers ranging from 2K up-to 50K in certain social network platforms. They have a great impact on their followers and many brands are utilizing that for their own benefit and so should you.
The influencer can do a collaboration with a brand for free, so he gets more exposure through the brand’s followers. Or it can also be done where a percentage or commission is paid to the influencer based on the purchases/links clicks the followers do. This is called Affiliate Marketing.
When creating your marketing strategy both influencer and affiliate marketing are important methods to consider. They are both powerful methods in reaching a larger more relatable scale of audiences.
The business relationship between your brand and the influencer has many challenges that comes in the way of its success. One of these challenges is not being able to verify the authenticity and integrity of the influencer specially micro-influencers. But with the availability of blockchain, where data about them and their previous work is openly available in a clear way, a brand can easily select the suitable influencer according to their specialty, scope and work history. Such as an athlete, an artist or a fashion stylist.
Similarly Affiliate marketing faces its own challenges where Blockchain can help solve many of them. As It uses smart digital contracts that can control the process, minimize fraud and limit money wastage where the contract is automatically executed when a predetermined task or term is complete. This can be done without the contract being subject to manipulation.
As we mentioned before Blockchain is a decentralized network system where it uses a token-based business model which ends the existence of middlemen/brokers who interfere between the influencer and the brand decrease the exchanged value for both. Making the decision to adopt affiliate and influencer marketing in your strategy an easier and cost effective one to make
The Protection of users’ data
Due to last year’s Facebook public indiscretion, regarding user data security and the EU’s General Data Protection Regulation (“GDPR”), which came into force on 25 May 2018, concerns have been raised for many internet users.
This has also affected the marketing strategies of many companies who rely on the consumers’ behavior on different websites where they gather data about the consumers to serve them more relevant products and services. Websites such as social media platforms or e-commerce websites.
With the decentralization of blockchain solutions where information is stored in a way that is consisting of structured data blocks linked to the ones before and after it. The information blocks cannot be compromised or tampered with.
User identities are protected where each user has a unique long alphanumeric address that is used so that it enables consumers to remain anonymous at their request and they are able to have control on what they want to share about themselves and their behavior. They are also given the option to sell that information to the companies that need them. This is an important consideration when formulating your marketing strategy that is based on market research and the creation of your customers’ persona. At the same time this works in a two way stream, where your customers’ information can be protected by the same blockchain network you are operating on and this can be a competitive advantage that you can highlight in your marketing strategy.
Blockchain and E-commerce
Blockchain applications are currently spreading in the e-commerce arena, where they better security and fraud prevention, more facilitated transactions, user anonymity and product authenticity are ensured.
A well-known platform that is Facebook has announced that they are pursuing the banking business by launching their own cryptocurrency ”Libra”, digital wallet ‘Calibra” and a network for financial transactions using Blockchain.
This facilitates the commercial buying and selling transactions, that Facebook plans on promoting via their social network marketplace. These transactions will be backed up by banks and the blockchain network will make sure that the anonymity of the users’ banking information is maintained.
This is also called “Hybrid Blockchain” where it has two parts, one is a public network for consumers making purchases using the digital wallets and the other part is a private network used by the banking systems who are operating with digital currencies as well as the users to securely hold their information private.
Bitcoin is also a famous example of how blockchain has become very popular in the e-commerce world, as many have adopted it as their form of payment such as Shopify, Google and Microsoft. It facilitates the payment processes, saves time, provides higher security features for both the buyer and the vendor and makes it easier to manage your inventory.
As an e-commerce business owner/ manager, Blockchain is very important to consider incorporating into your business. It will distinguish you from the competition and give you an advantage that you can build your marketing strategy around.
Finally, the popularity of blockchain is only going to grow bigger with time. As security becomes a major concern to many and the growing popularity of cryptocurrencies , you as a business owner/manager ,an influencer or marketer it’s only natural to incorporate Blockchain networks into your business operations as it will help you get through many of your marketing and business challenges..Your marketing strategies are no different as you should put blockchain at its core as it gives your prospects and customers the best experience with your brand.