The crypto marketing trap: Hiring crypto experts can backfire | Opinion

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As a marketer myself, I can’t help but be impressed by Ilias Melikov’s extensive and diverse career journey in the tech industry. With over a decade of experience under his belt, it’s clear that he has mastered the art of balancing long-term brand development with short-term tactical marketing.

In simpler terms, every trader understands that it’s their own assumptions, not market circumstances, that can lead to them losing their investments. It’s unfortunate when crypto companies continue to employ marketers who disregard marketing fundamentals by setting unrealistic expectations with 100X leverage, fully aware of the potential risks.

Many marketers I’ve encountered view cryptocurrency marketing as a distinct entity. This notion can easily seem plausible due to the industry’s dynamic, rapid pace, and the sense that it operates like the unregulated frontier of finance. What further complicates matters are the pioneering entrepreneurs behind new crypto ventures who perceive their field as singular, necessitating a unique strategy. As a result, they tend to hire specialists who are well-versed in cryptocurrency rather than marketing.

This has resulted in a surge of untrained crypto marketers concocting quirky and inefficient solutions on how to scale their businesses. By blindly following the industry trends, marketing departments often become a liability to crypto companies. 

If your marketing team consistently falls short and faces potential dissolution, let me propose an idea for you.

How to spot a lame marketer?

As a researcher delving into crypto marketing strategies, I’ve noticed an interesting pattern: while lead generation is indeed crucial, focusing solely on leads might be akin to storing all my cryptocurrency in a single digital wallet. In other words, it’s essential but potentially risky to rely too heavily on this one aspect without exploring other promising avenues for growth and diversification.

As an analyst, have you ever found yourself in those nerve-wracking internal meetings where we suddenly notice a drop in our conversion rate from leads to revenue? That’s what I call the critical juncture. Some marketing professionals might label it as a plateau and attribute it to market saturation; others might attempt to resolve it through Account-Based Marketing (ABM) or by revamping business processes. However, I’ve found that this issue often stems from a fundamental marketing principle that many untrained marketers overlook – the effective application and utilization of marketing funnels. Let me guide you through the next part where things become more illuminating.

2. In your case, as a groundbreaking, hack-resistant crypto wallet start-up, your marketer might inadvertently disrupt the marketing process. He’s likely emphasizing the wallet’s unparalleled security as the key to success. However, if people aren’t aware of your brand’s existence, his efforts are similar to a shout into an empty room or a message sent to followers who don’t exist yet. Essentially, his marketing messages won’t reach their intended audience.

You may wonder where the funnel comes into play? To provide clarity, let’s take a step back. By nature, lead generation attracts individuals who are intrigued by your product, your industry, and the problem you solve. In essence, we visualize this process using a funnel with three stages: top, middle, and bottom. The top represents potential leads, the middle signifies engaged leads, while the bottom denotes converted leads.

Without a doubt, the most promising leads are often found at the lower end; they’re the smallest yet highly sought-after segment. In your case, the marketer requires a means to demonstrate immediate marketing accountability that will be evident during the board meeting. However, since the number of prospects actively requesting services at the bottom of the funnel is limited, how can this be achieved effectively?

As a crypto investor, I’m all about driving more potential investors towards my funnel and cultivating their interest until I have a substantial number of them. However, here’s where things get tricky. You see, if I’ve followed the standard marketing course, I’d know that generating active demand comes from the brand awareness stage, which is:

Instead of focusing solely on lead generation at the final stage of the sales funnel for immediate sales, it’s crucial to remember that building brand awareness through a separate funnel can significantly boost your overall demand.

How it should be done:

Examine Ledger, the star of the hardware wallet market. At first, Ledger primarily emphasized the lower end of the funnel, aggressively promoting their product’s “Fort Knox” grade security features to boost sales. While they did gain some customers, they eventually encountered a plateau in growth.

Recognizing that they had to intensify their ToFu strategy, Ledger made a strategic shift. They began attending significant cryptocurrency conferences, making a splash at blockchain events, and networking with influential figures in crypto. This bold move significantly increased their brand visibility (ToFu).

However, they didn’t limit themselves. Ledger expanded into content creation, publishing educational articles and videos about cryptocurrency security and optimal practices, enhancing their brand recognition (Middle of the Funnel). As the crypto community grew more familiar with them, Ledger emerged as the preferred hardware wallet over its competitors (Bottom of the Funnel).

This balanced strategy throughout the different stages of the marketing funnel resulted in a consistent pattern of growth for the company. An increase in brand visibility at the initial stage gradually influenced the increase in conversion rates at the final stage.

From my perspective as an analyst, it’s essential to clarify that a marketer might not be aware of the specific implications of ‘long’ and ‘short’ in the context of our field. In crypto trading, these terms have well-defined meanings, but in marketing, they refer to short-term sales promotions and long-term brand development. Striking the right balance between these two strategies is crucial for successful marketing endeavors.

If you’re familiar with the demand generation curve, it’s essential to understand that, despite your best efforts, sustainable long-term growth may remain elusive. I suggest checking out the book ‘The Long and The Short of It‘ by Peter Field and Les Binet, which presents compelling data on this topic.

The most common mistake marketers make when it comes to scaling is overfocusing on short-term sales activation activities to maintain and display immediate results to the management. The pitfall is that sales uplifts do not promote long-term growth and increase market share. 

How it should be done: 

Explore Binance. They didn’t reach the pinnacle by merely pushing ads and quick deals at us. Instead, they played a long game effectively. Binance dedicated resources to strategic, long-term brand-development efforts such as educational programs and community outreach. Binance Academy, their extensive learning platform on blockchain and cryptocurrency, is more than just an additional project—it’s a trust-building, knowledge-disseminating force that has significantly contributed to Binance’s market leadership and sustained growth.

Spotting a good marketer

In essence, your marketer employs both long-term and short-term marketing strategies, which can sometimes feel like navigating a labyrinth while wearing a blindfold. Essentially, there are two approaches to selling goods: the extended branding approach and the quick, immediate one. The long-term strategy is focused on the broader vision, gradually strengthening your brand over an extended period. It’s similar to planting seeds and watching them grow into towering trees (for example, making people recognize your technology brand, persuading them that your soft drinks are ideal for any occasion, or convincing them that your luxury cars truly embody luxury). On the other hand, the short-term strategy is more about immediate results and quick sales, often used to capitalize on current trends or events.

In simpler terms, the quick sales activation method can be understood as “Let’s make a sale immediately!” It involves encouraging people to take swift action (such as visiting your website, purchasing your latest product, enjoying a seasonal pumpkin spice drink, or test-driving a new car. Essentially, it’s about seizing the moment for those time-sensitive offers).

Consider it in this manner: The swift route is similar to dashing towards the goal post, whereas the extended path is analogous to leisurely walking with occasional stops to appreciate the surroundings. They both lead to the same destination, yet they carry distinct atmospheres.

By using both strategies, you can enjoy the benefits of both scenarios. You lay the foundation for long-term brand development, yet still reap short-term sales successes. It’s similar to planting seeds and getting some tasty fruit right away while your trees mature.

2. Your marketer finds a harmonious equilibrium. If you’re undecided, let me clarify: equilibrium. Short-term strategies may yield swift outcomes, but they need to be matched with long-term brand development initiatives. It’s crucial to discover the ideal blend of both.

You don’t have to reinvent the wheel to maintain sustainable marketing performance. Effective lead generation is as much about brand awareness as it is about generating demand. The principles of crypto marketing are fundamentally the same. It’s all about getting leads that actually convert. Yep, this applies to both B2C and B2B.

Cultivate interest in your offerings well ahead of potential customers approaching you, by combining tactics. This blend will result in a potent marketing technique that fosters continuous development.

For my beloved crypto company owners

In summary, for those running a cryptocurrency-focused enterprise: Instead of recruiting individuals with extensive crypto knowledge, consider hiring marketing professionals instead. They’re already familiar with these strategies, which sets them apart from your current team members and equips them to effectively avoid common mistakes. This strategic choice will guide your business towards sustainable growth, as it’s like selecting a seasoned market navigator over someone who simply knows how to create hype around meme coins. Trust me; you want the strategist in this scenario.

Ilias Melikov

Ilias Melikov is a marketing leader with over a decade of experience in the tech industry. His work is grounded in the principles of long-term brand development and short-term tactical marketing, balancing sustainable growth with measurable results. Throughout his career, Ilias has held key roles as marketing director, brand marketing lead, chief communications officer, and managing editor. Orchestrating campaigns that amplify brand awareness and drive user adoption, he excels in crafting clear and precise brand narratives, executing performance-driven marketing strategies, and managing multi-channel engagement strategies. Passionate about decentralized technologies, Ilias actively contributes to discussions on their transformative impact on global markets.

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2024-11-07 20:29