In the dynamic landscape of automotive marketing, a new trend is emerging that could reshape how brands engage with consumers: blockchain technology.

This approach leverages the inherent capabilities of blockchain for cost-effective, direct, and highly traceable marketing strategies.

Understanding blockchain in marketing

Blockchain isn’t just the foundation of cryptocurrencies; it’s a ledger of transactions that are transparent and extremely cost-efficient. Imagine sending promotional tokens or NFTs (Non-Fungible Tokens) directly to thousands of wallets at a fraction of traditional marketing costs. This concept, while innovative, is already showing potential in various sectors.

Why blockchain for automotive marketing?

  • Cost efficiency: Transactions on blockchain can be executed for less than a penny, much lower than traditional digital or physical advertising methods.
  • Direct engagement: Notifications are sent directly to users when they receive tokens, ensuring immediate and potentially more impactful engagement than conventional methods like emails or push notifications.
  • Traceability and ROI: Each transaction on the blockchain is traceable, providing marketers with real-time data on customer interactions. This can be pivotal in adjusting marketing strategies based on direct consumer feedback.

Applications in automotive sales and service

  1. Brand awareness

—Meme coins and NFTs: Automakers could distribute branded meme coins or unique NFTs to their fanbase or followers. These could symbolize digital art linked to new car models or grant access to exclusive virtual events.

—Example scenario: Launching a new electric vehicle could involve an airdrop of “EV Tokens” that can be redeemed for exclusive test drives or discounts on charging infrastructure.

  1. Service marketing

—Loyalty programs: Instead of traditional loyalty points, customers could earn blockchain-based tokens for each service visit, which they can use for future discounts or even trade among enthusiasts for a community-driven loyalty system.

—Example scenario: Post-service, customers might receive “service tokens” that can accrue for benefits like a complimentary oil change or a VIP pass to an auto show.

  1. Event triggered marketing

—On-chain analytics: By monitoring on-chain transactions, automotive companies can detect when a customer has interacted with a token, using this interaction as a trigger for further engagement.

—Example scenario: If a customer trades tokens, this could prompt an automated message offering a personalized consultation on vehicle upgrades or future models.

Who will lead this charge?

  • Early adopters: Luxury brands might take the lead, capitalizing on their customers’ interest in exclusive experiences and cutting-edge technology.
  • Tech-savvy manufacturers: Companies like Tesla, known for innovative approaches, could integrate this into their marketing mix, enhancing their reputation for tech-forward strategies.
  • Best practices: The brand that excels will be one that seamlessly blends blockchain marketing with existing digital tactics, ensuring it’s not just another trend but adds tangible value to customer relationships.

Challenges and considerations

  • Regulation: Navigating the regulatory environment surrounding cryptocurrencies and blockchain will be essential.
  • Education: There’s a need to educate consumers on how to use and benefit from these tokens, necessitating clear and effective communication.

Conclusion

The evolution from direct mail to email, and then to digital marketing, underscores the potential for new channels like blockchain to revolutionize consumer engagement in the automotive industry. As we look to the future, it will be intriguing to watch which automotive leaders adopt and adapt this technology to drive not just vehicles, but also customer loyalty and engagement into new realms.

Brad Smith is a seasoned automotive data strategist with more than 20 years of experience in leveraging emerging technologies like blockchain to transform vehicle title, registration, and remarketing processes. Brad is the founder and principal consultant at Leroy Lynn, LLC, consulting companies focused on blockchain, AI, and data science solutions.  Brad can be reached via email at brad@leroylynn.com.