Bitclout: A Lesson in Marketing Ethics

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If you’re active on Crypto Twitter, you’ve probably heard of Bitclout. If not, here’s the deal:

Last month a platform launched with the mission of “decentralizing social.” This platform, called Bitclout, presents itself as “a new type of social network that lets you speculate on people and posts with real money.”

Cool.

According to Coindesk, BitClout is a proof-of-work blockchain created by an anonymous group of developers.

Cooooool.

Every user on the platform can post, share, and comment on each others’ posts, like any other social network. The kicker here is that having an account mints a token for that user.

Very cool.

Hey, look at that. My profile.

Except I’ve never signed up for Bitclout. And neither has thousands of other Crypto Twitter community members who mysteriously have accounts on this platform. People are pissed.

Really pissed.

Every marketer eventually finds themselves in a situation where a fantastic growth idea might skirt an ethical line, and for many, Bitclout crossed that line by quite a margin. But you can imagine how they got there. In the end, it worked. We’ll see if this gamble pays off in the long run.

When it comes to ethics in marketing, there are some key rules that need to be followed. Good marketers figure out how to leverage those values to a brand’s advantage.

All Claims Have to Be Factual

The key to any brand is a well-crafted value proposition. But the worst thing you can do is over-promise. In our industry, this covers a lot of your favorite compliance officer’s greatest hits: Don’t use misleading claims:

In 2010, Dannon settled a class action lawsuit for $45 million over the "clinically" and "scientifically" proven medical claims in their Activia yogurt marketing. Their products sold at 30% over other brands because of those claims.

What not to do.

Align Corporate Messaging with Corporate Actions

Guess how many consumers say they are likely to take negative action against a socially or environmentally irresponsible company.

75%

And that number is from 2016. It’s more important than ever for brands to follow the values that they project to the public.

One of my favorite examples of this is clothing company Patagonia, whose stated mission is “to protect nature.”

The “disposable fashion” industry has increased by 400% in the last two decades, increasing environmental pollution and supporting sweatshop labor in developing nations.

There are a number of cool things Patagonia has done to further their environmental mission:

• Patagonia Action Works, a platform for connecting committed individuals to organizations working on environmental issues in the same community.

• Worn-Wear, a place to repair, share and recycle your Patagonia gear.

• And last but not least, their “ironclad guarantee.”

Practice what you preach.

Keep Your Promises

We’ve talked about retention marketing before. Something I think about pretty often is that a 5% increase in customer retention correlates with at least a 25% increase in profit.

The potential benefits and negatives of keeping or losing a customer is pretty significant. That’s why a marketer’s focus should always be on making promises that you can keep.

Free shipping on all orders? Great.

Lowest price guaranteed? Even better.

Most trusted company in the industry? Fantastic.

These USPs (unique selling points) are also trust indicators (which we’ve also discussed). They will make and break your business.

Think about Wells Fargo, who mission statement is “helping customers succeed financially.”

In late 2016, news broke that the bank had created millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent.

In the 30 days after the Wells Fargo scandal broke and comparing them to the previous 30 days, downloads of the Wells Fargo Mobile app dropped by 7.7%. A study at the time found that 14 percent of Wells Fargo's existing customers planned to leave the bank. To top it off, new checking accounts were down 41% vs LY and applications for consumer credit cards dropped by 45%.

In our industry, where people are trusting you, a brand, with their hard-earned money, marketing ethics is everything. Be worthy of that trust.

Who’s Hiring Marketers in Crypto?

• Email Martketing Lead @ eToro US [APPLY]

• Business Intelligence Analyst @ eToro US [APPLY]

• Business Development Representative @ The Block [APPLY]

• Marketing Manager, CRM & Email @ GSR [APPLY]

• Digital Marketing Associate @ Pantera Capital [APPLY]

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