Even though blockchain is a relatively new technology, it looks like it’s here to stay. Currently, there are so many predictions on how technology could shape the future as we know it. While most of these opinions are simply speculations, some of them have their merits. In this post, we will be discussing how the adoption of blockchain-based technology will affect online buying behavior.
It makes it harder for marketers to access consumer behavior.
Consumer information and behavior is at the heart of marketing. The information gathered by social media, search engines, and websites can inform marketers on the most effective way to target people. The current system of payment has a lot of opportunities to harness consumer behavior and data. However, the introduction of a blockchain-based transaction model can change all that completely.
Cryptocurrency and blockchain technology will encrypt many activities, making it challenging to obtain leads and buyer information. While tighter privacy policies mean that individuals will have more control over their personal information, it has larger implications for online vendors. There’s a possibility that this will lead to less effective marketing campaigns. Basically, the more online vendors switch from payment merchants like Powercash21 to blockchain, the harder it will be for brands to market effectively.
Consumer information will cost more.
Since it’s virtually impossible to have a successful marketing campaign without data, marketers will have to jump through hoops to get the information. This will often mean paying for the data. However, the increase in demand for user information will also bring an increase in price. Marketing campaigns will potentially cost much more than they currently do.
This can then cascade into several events. Firstly, it could mean that vendors will try to make up for their increased spending by raising the prices of their offerings. In this case, the consumers will bear the brunt of it. The scarcity of data could also mean that there will be laxity in privacy policies. Websites would have more reasons to illegally collect users’ information.
More consumer loyalty for vendors
The influence of cryptocurrency isn’t all bad. In fact, the new digital currency has a lot of perks for online vendors. While some of them, like quicker and cheaper transactions, relate directly to customer purchases, this one has to do with customer loyalty. Loyalty points are some of the ways that vendors and organizations earn and keep customer patronage. They give points when people patronize them, and the points are redeemable after accumulation.
However, the current loyalty points system has its limitations. Firstly, the points are only redeemable on a limited range of products. These products are chosen by the vendors, and the consumers may not be interested in them. Additionally, many of the points lose value over time or expire altogether.
The introduction of cryptocurrency as a loyalty point system will solve these problems. Cryptos don’t expire, and they can be redeemable on a wide range of items. Additionally, organizations that offer cryptocurrency rewards can ride on its current popularity and gain more publicity for their brand.