BLOCKCHAIN: A DOUBLE DOSE OF TRUST FOR BRANDS
Blockchain, the incorruptible digital ledger of transactions, not owned by any single entity and visible to all, will revolutionize economic transactions and also change marketing transactions and measurability – that is the prophecy from one and all.
CHAIN OF TRUST FOR MARKETER’S MONEY
While projections about Blockchain are a bit like prophesying about the Internet way back in the 1990s, the hope is robust. With many organizations already working on using Blockchain to bring in transparency to marketing dollars, the results can create an upheaval. The current visibility to what this transparent ledger of transactions can achieve is in itself astounding, even if we leave what it can develop into for later!
Marketers will spend better with confidence and if this happens, it ought to be faster rather than later as marketing gets an upheaval from transparency, becomes a more efficient business engine, a muchneeded ask today.
As marketers better use their marketing dollars, that itself will set in a consumer experience virtuous cycle, but that is only one half of the trust benefit that Blockchain provides.
GAINING MARKETER’S TRUST TO BRIDGING CONSUMER TRUST GAP
Like marketers, consumers much lack trust in brands today and need to repose their trust in brands.
I quote a research that I was privy to in my years with Cogito Consulting at FCB, according to IPG New Realities, a survey measuring consumer attitudes in seven countries ((US, UK, China, India, Russia, Brazil and SA) over an extended period of 9 + years, people around the world are holding brands to a high standard of trust. Information about the product, what’s behind the product, is gaining importance on all aspects of decision making.
The Edelman Trust Barometer also says that 16 of 27 countries show a major decline in trust falling below the 50% level and becoming a part of the ‘distrust’ cluster of countries.
And this is the second leap in trust that blockchain will create for brands. With Blockchain, the veracity of all information is expected to reach an all-time high. With incorruptible information ledger available to all and owned by none, brands can indeed walk the talk of trust.
A SEE-THROUGH OF THE SUPPLY CHAIN IN FOOD
One of the key consumer challenges in packaged foods today is the authenticity of the packaged product. There is a key question of what’s inside the packet. And this becomes even more pronounced with organic foods. These are fussy consumers who want to be extra careful about the process and don’t know what they are picking up. Any number of claims, advertising, don’t hold good here.
As the owner of Naked Organics puts it, “Blockchain in agriculture allows the consumer to scan the barcode of a product in the supermarket and instantly view the entire supply chain from supermarket to farmer.” Once the consumer can view the supply chain, the opportunity for marketing to amplify, engage and create one-to-one interaction with the grower, the suppliers and the user are all fantastic credibility builders which transcend all advertising or claims.
A VERACITY BOON IN THE INSURANCE SECTOR
Transparency can become the biggest brand enabler here. The insurance industry is caught in the tryst of verifying claims, which is time and cost consuming, while at the other end consumers are weary of their claims being fulfilled and this is a major stumbling block for the growth of the industry. Blockchain is fast leading to a disruption here.
Imagine a ledger of multiple parties which can be independently verified, for the authenticity of customers, policies and claims. A distributed ledger can enable the insurer and various third parties to easily and instantly access and update relevant information (e.g., claim forms, evidence, police reports and third-party review reports).
This tool in the hands of marketers can multiply to generate trust, the big driver of choosing an insurance brand. Content, people to people recommendation, authentic brand conversations get to multiply and drive the category forward.
A BRAND TRUST MULTIPLIER TOOL
There was a time when the most important things to tell your consumer about the overcoat was its colour, cut, fit and an imagery - all that is important, but what is also very important is authenticity of make and design, artisanal product, ethical sourcing, values and transparency – all of this becomes more accessible to marketers with Blockchain and offers larger opportunity to create compelling first time ever content.
Now combine the two – the ability to target consumers authentically with never before available authentic information about what goes behind the brand, the ability to create trust and hence valuable conversations and conversions multiply.
While there is be a lot that is yet unfathomable, but like all technology, experimentation and learning will lead the way, and in this case the path is inside-out marketing engagement with mutual trust and benefits, authenticity forward, the sooner the better!
(The author, former COO of Leo Burnett Orchard, is a business catalyst who has worn many hats as an agency head, marketing head, brand consulting head and media planning head)
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