Including "Blockchain" in Marketing Copy Powers Willingness to Pay
Mar 6 2019
On this episode of the ProfitWell Report, Marcelo Furtado, Co-Founder at Convenia, asks us a brilliant SaaS marketing question: How does having "blockchain" or "crypto" in your marketing impact willingness to pay?
In less than a decade, the concepts of the blockchain and cryptocurrency have gone mainstream and permeated throughout our financial markets and a myriad of different products, from IBM's Watson to the "internet of things".
You even had the Long Island Iced Tea company try to pivot and rename themselves Long Blockchain company, which resulted in seeing almost a 300% jump in their stock.
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There’s a ton of hype around blockchain in general, which is why we’re answering our question today. To determine just how much blockchain impacts willingness to pay, we designed a pricing experiment with just over eleven and a half thousand target customers.
We asked a control group their willingness to pay for a fake finance product. We then asked a demographically congruent group about the same finance product, but with a variation of “with 'Blockchain' technology” in the marketing copy.
We changed nothing, but the marketing copy.
We found that if you include blockchain in your copy, it willboost willingness to pay by essentially 20-25%. For better or for worse, when just mentioning cryptocurrency technology, willingness to pay basically didn’t move.
I’m not sure what this says about humanity, but it definitely indicates even in a downmarket for cryptocurrency and blockchain hype, there’s still some hype when it comes to this new fangled technology.
Whether this hype turns out to be true and worthwhile is a whole different story, but for now this hype can be taken advantage of as IBM and other companies have been doing.
We need to keep in mind though that over time consumers will get more educated and the impact of the marketing speak will diminish, which is good for all of us long term, because at that point, it’ll be back to all being about the actual value being delivered.
For now, If you have the chance, go ahead and take advantage of the hype, but I’d recommend personally making sure you’re backing up and not being a grifty company selling snake oil.
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