With so many cryptocurrencies launching and gaining prominence in headlines, it’s time to get more sophisticated with cryptocurrency marketing. Instead of relying on industry hype, crypto companies need to build their distinct message and project it into the larger blockchain conversation. While the fundamentals of messaging still apply, the complexity of cryptocurrencies requires focus on these four areas of marketing.
More Specific Audience Segmentation
Buying a cryptocurrency token does not give the purchaser any stake in the company. Instead, different coins bestow different benefits. Some provide bandwidth on an operating system while others allow access to sophisticated foreign exchange algorithms, and still others do even more. Attracting investors who care about your token’s purpose means paying particular attention to your potential customers—sometimes defying traditional buyer personas—and the channels where they congregate. For example, a token that gives bandwidth privileges to a developer attracts a particular kind of audience. A token that gives access to a foreign exchange algorithm attracts a different kind of investor. Sometimes, your audience may not even come from an investment or cryptocurrency background, as is the case with decentralized betting platforms. In this case, potential customers also come from the world of sports betting and may have different behaviors.
Extra Effort in Education
The new and varied nature of blockchain companies and cryptocurrencies calls for extra effort in educating your audience about what your token does. If your token grants special access or privileges beyond simply holding value, you need to address the benefits of participating beyond making money when the token value increases; otherwise, you will mostly attract investors speculating the value of the token and flipping it when the value increases instead of actually using your product.
You also need to explain clearly how to invest, especially if your audience has never previously participated in a token offering. Complexities that can confuse your investors come in the form of using different wallets, legal specifications defining who can invest, the time it takes for transactions to go through, and so much more. Eventually, once procedures become as well-known as stocks and commodities trading, this may pose less of an issue, but for now, your company must play the role of educator.
More Reliance on Founder Reputation
When a blockchain company fundraises, the product does not need to be built beforehand and crypto companies usually market the potential of the technology, which is a much larger risk to investors. Some critics will even go as far as suggesting the company is a scam. In order to gain trust, cryptocurrency and blockchain founders must stress their reputation as experts in the field and experienced product-builders before the ICO is announced. This can come in the form of media interviews, authoring thought leadership articles, keeping an updated LinkedIn profile and GitHub account, and staying transparent about what they plan to do after raising funds.
For other ways to handle being called a scam, we have written an entire guide here, which includes advice on content strategy, community validation, and more.
Increased Community Engagement, Especially in Handling Crises
Buying tokens during ICOs is still somewhat unruly and average people do not yet understand the ins and outs. Sending the wrong digital currency to an address is a common mistake, with little to no recourse for recovery, as of this writing. Scammers deceive investors by setting up fake accounts and websites and encouraging investors to send money to a fake wallet address. Thus, companies issuing tokens must put extra effort into preventing fraud and handling scammers that appear. Make sure to equip your support team with instructions on how to help investors through common problems, staff chat rooms where your investors are asking questions, and post updates and guides to your website, social, and other communication channels.
Keep in mind, increasing regulations can alter the way you market your cryptocurrency in the future. For example, ICOs may be subject to the same restrictions as securities when it comes to marketing. You should be ready to change your plan as the legal landscape changes.
In building and executing marketing and communications plans, cryptocurrency companies need to make sure to focus on these four particular areas of importance in order to address the unique challenges in this unique industry. If you need help perfecting your company’s marketing plan or you are planning an ICO, drop us a line.