{"id":65023,"date":"2023-03-08T18:01:56","date_gmt":"2023-03-08T10:01:56","guid":{"rendered":"https:\/\/www.hongkiat.com\/blog\/?p=65023"},"modified":"2023-06-16T19:37:10","modified_gmt":"2023-06-16T11:37:10","slug":"blockchain-crms-marketing","status":"publish","type":"post","link":"https:\/\/www.hongkiat.com\/blog\/blockchain-crms-marketing\/","title":{"rendered":"How Blockchain CRMs will Simplify Marketing for Brands"},"content":{"rendered":"

Blockchain\u2019s fallen out of favor thanks to the astronomic rise of AI and ChatGPT<\/a>.<\/p>\n

There are pros and cons to this.<\/p>\n

On the pro side, a lot of the \u201cmake money quick\u201d crowd and scammers that had such a negative effect on the image of blockchain brands have moved on.<\/p>\n

They generally follow the money and that seems to be moving to AI for now.<\/p>\n

The con side is that, as public conversations have moved away from blockchain, most people\u2019s lasting impression of the space will be one of the scams, hacks, and shady actors.<\/p>\n

Which is a real shame. These people will still be thinking that blockchain is nothing more than cryptocurrency exchanges<\/a> or NFTs that are simple PFPs<\/abbr>.<\/p>\n

A little digging into the space will show you that there are some really cool solutions being created<\/a>. Solutions built on blockchain that aim to make life easier by solving real-world problems.<\/p>\n

one of the most powerful upcoming developments, in my opinion, is the growth of blockchain-based CRMs<\/a>.<\/p>\n

These things are set to revolutionize the way brands do business and attract new users. But no one wants to talk about them because there\u2019s a lot of cash being thrown around in AI right now.<\/p>\n

I\u2019ll explain why these tools are so powerful shortly. Before I do, we need to understand even the basics of the blockchain and how apps work within the ecosystem.<\/p>\n

A little blockchain 101<\/h2>\n

I won\u2019t go into great detail on blockchain here. There are plenty of great guides online to explain what blockchain is and how it works<\/a>.<\/p>\n

In short, blockchain is an immutable public ledger. In simple terms, a record of transactions that anyone can see and no one can alter.<\/p>\n

For example, if you know the wallet (kind of like the username) someone uses, you can see how they\u2019ve interacted with blockchain projects.<\/p>\n

Take the below as an example.<\/p>\n

It\u2019s a screenshot from a service called Etherscan<\/a>, which helps you look at the on-chain data (information from blockchain transactions) to understand how someone is interacting. In this case, specifically with people and brands based on the Ethereum blockchain.<\/p>\n

This is one of my own wallets we\u2019re looking at.<\/p>\n

\"blockchain<\/figure>\n

You can see what that wallet has interacted with and, if money has been sent, how much, and to whom.<\/p>\n

Which is kinda cool.<\/p>\n

But how does this actually help any businesses?<\/p>\n

The business opportunity a public ledger provides for brands<\/h2>\n

Here\u2019s where I think the real opportunity for marketers and brands in Web3 lies.<\/p>\n

Co-promotions and networking<\/a> have always been great for brands and businesses to quickly increase their reach.<\/p>\n

Find a brand that\u2019s not a competitor but has an overlapping audience, and work out some form of co-promotion to expose your offer to their audience.<\/p>\n

A simple promotion like this can bring hundreds or thousands of new users.<\/p>\n

The problem, right now, is that getting a collaboration like this approved can be timely and it\u2019s not guaranteed.<\/p>\n

You could spend days pursuing a potential collaboration only to finally have the other side say \u201cno thanks, it\u2019s not the right time for us\u201d.<\/p>\n

In Web3, everything is public on the blockchain, meaning you can find people who like offers similar to yours without having to go through any gatekeepers.<\/p>\n

Let\u2019s head back to my wallet and look for an example.<\/p>\n

As you can see below, I interacted with a wallet owned by Binance<\/a>, the largest crypto exchange.<\/p>\n

\"Binance\"<\/figure>\n

If I click on the link that says \u201cBinance 18\u201d it\u2019ll bring up all of the people who have interacted with that specific Binance wallet.<\/p>\n

\"Binance\"<\/figure>\n

It\u2019s basically a huge list of people interested in and who use one of the world\u2019s biggest cryptocurrency exchanges.<\/p>\n

If I have an offer that would appeal to those people, I can easily pull a list of them without breaking any confidentiality rules because the list is publicly available.<\/p>\n

Imagine if you could do this with an email list.<\/p>\n

How valuable would it be to head to a website where there\u2019s a publicly available list of emails who have bought from brands like yours?<\/p>\n

That\u2019s essentially what this is.<\/p>\n

The only difference is you\u2019re getting access to an identifier. not a communication channel.<\/p>\n

Current problem with blockchain data & how CRM could solve it<\/h2>\n

The first major problem you\u2019ve probably noticed is that your list of \u201cpeople\u201d is nothing more than weird strings of letters and numbers.<\/p>\n

With that being the only identifier, you can\u2019t realistically reach out to them.<\/p>\n

If you do want to reach out to them, you have to somehow marry that string of characters to a channel where you can make contact.<\/p>\n

I\u2019ve seen plenty of Web3 projects try this. They generally have to resort to using a simple excel sheet which, as you\u2019d imagine, becomes quite cumbersome and difficult to manage.<\/p>\n

Here\u2019s the process they often use to populate the sheet with ideal users.<\/p>\n

    \n
  1. Click through the \u201cto\u201d wallet address<\/li>\n
  2. Check if they\u2019ve registered an ENS domain (those .eth usernames)<\/li>\n
  3. If they have, head to a platform like Twitter and search for that ENS Domain<\/li>\n
  4. Hope they also use it for their Twitter account<\/li>\n
  5. If they have, add them and their Twitter account to the sheet<\/li>\n<\/ol>\n
    \"blockchain<\/figure>\n

    This process has a low hit rate of matching wallet addresses to social accounts.<\/p>\n

    It\u2019s also massively time-consuming.<\/p>\n

    This is where a good Web3 CRM comes in. A blockchain-based CRM is built around user wallets.<\/p>\n

    You\u2019ll be able to quickly build a list of wallets interested in similar offers to yours and add them to an excel list.<\/p>\n

    Which is great for 2 reasons.<\/p>\n

      \n
    1. You don\u2019t have to waste time manually building lists of long confusing character strings<\/li>\n
    2. It preserves the user\u2019s personal details and privacy \u2013 all you have is their wallet address<\/li>\n<\/ol>\n

      But hold on, you might be thinking, how do you then reach out to these users if you just have a wallet address?<\/p>\n

      Here\u2019s the cool thing.<\/p>\n

      The better blockchain CRMs will allow you to add these users to marketing funnels that are built around their wallets.<\/p>\n

      For example, you\u2019ll be able to send those wallets a simple airdrop NFT (something you send to their wallet for free).<\/p>\n

      According to Blocksee<\/a>, these Airdrop campaigns have a 100% delivery rate as opposed to emails average open rate of 17-28%<\/a>.<\/p>\n

      \"blockchain<\/figure>\n

      That delivery rate should mean your outreach is seen by more people. Add a great incentive, say a 10% discount, if they sign up for more, and you\u2019ll populate your customer list with a lot of new interested people.<\/p>\n

      And as they\u2019ve now opted in, you have their details to add them to a more traditional nurture sequence for more sales.<\/p>\n

      All this in a fraction of the time it would take to do manually.<\/p>\n

      It should also provide far better results as the offers are based on people who have exhibited an action showing they like offers similar to yours.<\/p>\n

      There\u2019s a growing number of blockchain CRMs on the market (we have a growing list of the best Web3 CRMs here<\/a>), but if you\u2019re thinking about trying one out, here\u2019s what you want to be looking for.<\/p>\n

      Dashboard that collates potential customer wallets<\/h2>\n

      Great CRMs<\/a> have always been about segmenting your potential customers so you can hit them with the best offers at the right time.<\/p>\n

      CRMs in Web3 are no different. The benefit here is that they can (and should) pull wallets from blockchain transactions and collate them into relevant lists for you to market to.<\/p>\n

      For example, you could set them up so they pull people into lists like\u2026<\/p>\n