Including "Blockchain" in Marketing Copy Powers Willingness to Pay
This episode might reference ProfitWell and ProfitWell Recur, which following the acquisition by Paddle is now Paddle Studios. Some information may be out of date.
Originally published: March 6, 2018
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.
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.
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We changed nothing, but the marketing copy.
We found that if you include blockchain in your copy, it will boost 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.
Want to learn more? Check out our recent episode: The Data From 70k Customers Reveals the Impact of Design and subscribe to the show to get new episodes.
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You've got the questions,
and we have the data.
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This is the ProfitWell Report.
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Hi, Neil.
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I'm Marcelo from Brazil, and
I'm the cofounder of Convenia.
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So my question is, how does
having blockchain or crypto in
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your marketing impact
the willingness to pay?
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Thank you.
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Welcome back, folks. Neil
here from ProfitWell.
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In less than a decade,
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00:00:25,785 --> 00:00:28,745
the concepts of blockchain
and cryptocurrency have gone
11
00:00:28,745 --> 00:00:31,065
mainstream and permeated
throughout our financial
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00:00:31,065 --> 00:00:34,270
markets in a myriad of
different products from IBM's
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00:00:34,270 --> 00:00:36,350
Watson to the
Internet of Things.
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00:00:36,350 --> 00:00:39,230
He even had the Long Island
Iced Tea Company try to pivot
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00:00:39,230 --> 00:00:40,715
and rename themselves
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00:00:49,380 --> 00:00:52,820
in general, which is why we're
answering our question today.
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00:00:52,820 --> 00:00:56,100
To determine just how much blockchain
impacts willingness to pay,
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00:00:56,100 --> 00:00:58,805
we designed a pricing
experiment with just over
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00:00:58,805 --> 00:01:00,965
eleven and a half
thousand target customers.
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00:01:00,965 --> 00:01:03,285
We asked the control group
their willingness to pay for a
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00:01:03,285 --> 00:01:04,725
fake finance product.
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00:01:04,725 --> 00:01:08,600
We then asked a demographically congruent
group about the same finance product,
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00:01:08,600 --> 00:01:13,560
but with a variation of with blockchain
technology in the marketing copy.
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00:01:13,560 --> 00:01:16,335
We changed nothing but
the marketing copy.
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00:01:16,335 --> 00:01:18,975
We found that if you include
blockchain in your copy,
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00:01:18,975 --> 00:01:22,655
it will boost willingness to pay
by twenty to twenty five percent.
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00:01:22,655 --> 00:01:23,775
For better or worse,
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00:01:23,775 --> 00:01:26,530
when just mentioning
cryptocurrency technology,
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willingness to pay
didn't really move.
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00:01:29,170 --> 00:01:31,410
I'm not sure what this
says about humanity,
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00:01:31,410 --> 00:01:33,970
but it definitely indicates
even a down market for
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00:01:33,970 --> 00:01:36,145
cryptocurrency and
blockchain hype.
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00:01:36,145 --> 00:01:39,185
There's still some hype when it
comes to this newfangled technology,
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00:01:39,185 --> 00:01:41,425
but whether or not this hype
turns out to be true and
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00:01:41,425 --> 00:01:43,820
worthwhile is a whole
different story.
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00:01:43,820 --> 00:01:47,180
For now, this hype can be taken
advantage of as IBM and other
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00:01:47,180 --> 00:01:48,620
companies have been doing.
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00:01:48,620 --> 00:01:51,340
We need to keep in mind though
that over time consumers will
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00:01:51,340 --> 00:01:55,465
get more educated and the impact of
the marketing speak will diminish,
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00:01:55,465 --> 00:01:58,425
which is good for all of us in the
long term because at that point,
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00:01:58,425 --> 00:02:01,850
it'll be back to all being about
the actual value being delivered.
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00:02:01,850 --> 00:02:03,770
For now, if you have the chance,
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00:02:03,770 --> 00:02:05,610
go ahead and take
advantage of the hype,
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00:02:05,610 --> 00:02:08,250
but I'd recommend personally
making sure you're backing up
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00:02:08,250 --> 00:02:11,265
and not being a grifty
company selling snake oil.
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00:02:11,265 --> 00:02:12,385
Well, that's all for now.
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00:02:12,385 --> 00:02:13,505
If you have a question,
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00:02:13,505 --> 00:02:16,625
send me an email or video
to neil at profit well dot com.
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00:02:16,625 --> 00:02:19,650
And if you got value here or
any other week of the report,
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00:02:19,650 --> 00:02:22,370
we appreciate any and all
shares on Twitter and LinkedIn
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because that's how we
know to keep going.
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I'll see you next week.
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This week's episode is
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a sales communication and
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00:02:36,763 --> 00:02:38,808
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