16 April, 2018
The goal of location-based advertising is to encourage the consumer to make the step from an online presence to an in-person visit at a restaurant or brick-and-mortar shop. Promotional methods like Groupon and FourSquare are fairly effective in bringing people through the door, yet lack the efficiency and staying power that blockchain technology promises.
Groupon, for instance, does not produce long-term customers for participating businesses—the users’ incentive is simply to get savings and discounts. FourSquare has devolved into a guessing game for consumers trying to wade through real and shilled reviews. Blockchain creates an opportunity for businesses to develop real, long-lasting, meaningful relationships with their customers who bring value both online and in person.
Using digital tokens as a reward to incentivize customers for symbiotic contribution is a concept that companies can tie into location-based advertising. Reading reviews and hearing from local people provides highly valuable information for potential customers, so it’s in a company’s best interest to encourage existing clients to contribute in this way. Actions like posting on social media and leaving ratings and reviews can be directly rewarded with tokens—and these tokens can in turn be used by customers in-store.
Importantly, such location-based advertising platform tokens would be more flexible and usable than a coupon, since they wouldn’t be tied to specific products, services, or menu items on specific days.
Blockchain is the perfect pairing for digital token transactions that reward patronage and customer engagement. The technology is secure and efficient, using an immutable ledger to keep track of transactions while simultaneously protecting user data. Companies can optimize their business strategies without consumers fearing their personal information is unprotected.
By cutting the middleman when gathering data, businesses can trust information to be completely accurate. This inspires confidence in relation to relevance and expected returns when fine-tuning promotional offers and location-based advertising strategies. Furthermore, the transparency in such an exchange promotes loyalty and trust, which are highly valuable assets in today’s consumer-based world.
Image via Pixabay.