Target audience research-based marketing strategy for an innovative product: a successful case
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The BDC Consulting team often manages to increase the sales and capitalization of client products by 100-200% through high-quality advertising and reputation management. The key to this success usually remains behind the scenes with target audience research.
How to promote a one-of-a-kind product?
In this case, our client wanted to create a unique product for the local market - a multicurrency crypto wallet aimed at the audience of one specific country. Together with the wallet, a new local stablecoin was created and backed by real assets. The support for USDT and USDC was also planned.
The main highlight of the wallet was the ability to cash out cryptocurrency in fiat at ATMs and withdraw it to a bank card in local currency without commission and limits. In addition, the wallet was supposed to enable buying and selling cryptocurrency and paying for various services within the country through an application.
In all these respects, the project had no analogs in the market of the target country, which made advertising campaign planning very challenging. How wide is the target audience, and what are its segments? We will find out in the course of the study.
Target audience research: structure
In BDC Consulting practice, the target audience research stage usually includes the following steps:
- Surveys and in-depth interviews with potential and existing users (if any), divided into segments. Interviews are carried out in the form of an audio/video conference according to a prepared script—duration from 30 to 60 minutes.
- Analysis of interview results. We identify the advantages of the product in the eyes of the target audience, highlight possible disadvantages, find out what competitive advantages the target audience uses (pros and cons regarding the product configuration), due to which competitive products cover the needs and pains of the target audience, as well as how the obtained data will affect the marketing activity further.
All results are collected in a single tabular report format. At the same time, we pay special attention to two points:
- what questions should be asked to respondents to find out how, where and with which offer to reach out to a specific segment of the target audience.
- what is the critical set of functions that should be available at the launch stage.
- what features competitors have in general and what users want to see in this product.
- Development of a marketing strategy and product positioning for the first advertising campaign.
The goal of the advertising campaign is to attract users to the product and digitize the advertising campaign funnel.
Globally, it is necessary to focus on TVL growth to certain values.
Segmenting of the target audience
We assumed that the key target audience of a crypto wallet is the so-called "crypto maniacs": active users who conduct cryptocurrency transactions (buying, trading, exchanging, withdrawing to fiat) at least once a week.
In turn, "crypto maniacs" can be divided into three segments:
"Crypto natives": they operate large amounts, have up to $350 thousand in circulation and store up to $20 thousand.
Users who are well versed in crypto but operate small amounts: they have up to $500 in circulation and store up to $1,000.
Users who superficially understand the essence of cryptocurrency and operate with small amounts (up to $300 in circulation and up to $1,000 in storage). They use cryptocurrencies to replace fiat: for example, to receive a transfer from another country, invest a few pennies in Bitcoin, etc.
The priority segments for us were the third one and (to a lower extent) the second. These people exploit the connection between cryptocurrency and fiat: they spend money after converting to fiat, want to pay for purchases in crypto, appreciate the idea of withdrawing cryptocurrency from an ATM, etc. Such users may experience difficulties with the withdrawal of crypto to fiat due to volume restrictions and high fees and are also interested in alternative methods of cashing out cryptocurrencies within the country. As for the first segment, these market participants can perform all the actions they need using cryptocurrency only.
Target audience research: threats and how to neutralize them
We conducted 30 interviews during which we categorized the audience of "cryptomaniacs", identified their needs, pains, and tasks of each segment: Segment 1 (crypto natives with a high turnover), Segment 2 (active mid-level users), and Segment 3 (small but active users). We also found out their opinion about this product and offers for its improvement.
Key issue: doubts about the realistic design
Everyone, except for crypto natives, believes that crypto withdrawal from an ATM and paying for purchases in crypto is difficult to implement in a given country for several reasons (regulatory, infrastructural, etc.).
It was clear that this doubt needed to be addressed. Otherwise, users may think that the project is either not viable or is a scam. Innovative users will try the product, while the inert majority will most likely ignore the proposal.
It is not enough to promise that the wallet will allow you to withdraw crypto to fiat: you need to explain how it will work. How the contacts with banks will be established, which stores will accept cryptocurrencies, how the withdrawal from an ATM will be technically implemented - all these questions should be answered for the target audience as part of the first promo campaign.
For this reason, we immediately incorporated explanatory and training materials into the marketing strategy. We also planned to collaborate with local influencers who were supposed to go to the store and buy something using a crypto wallet and show this process on their blogs.
Background problem: Concerns about banks’ reaction
Users expressed concern that local banks would not agree to work with the project, which would make it impossible to withdraw from an ATM and pay for purchases.
The advertising campaign was supposed to demonstrate the willingness of banks to support the wallet, as well as the compliance of the product with the principles of financial regulation.
For this purpose, we have included a list of assignments in the marketing strategy:
- post a review by a bank expert on the website
- negotiate partnerships with several banks
- place logos of partner banks on the website
More insights from target audience research: where do people search for information?
During the research, we did not miss the opportunity to ask users about the channels they used to find information about crypto projects. Information about the media consumption of each specific audience makes it possible to choose the right vector of advertising campaigns and distribute advertising budgets efficiently.
In this case, it turned out that the target audience consumes information from the following sources:
- Personal contacts and business chats
We also identified differences in the structure of media consumption between different segments of the target audience.
Segment 1 (crypto natives with a high turnover):
Segment 2 (knowledgeable, but with low revs):
Segment 3 (users with low revs):
Marketing strategy and product positioning defines after target audience research
Based on the results, the following criteria for choosing a crypto wallet were identified:
security ("I will read reviews on the Internet - I am responsible in this regard")
reliability ("it is used by many people, they trust it")
honesty ("I must surely know that if you send cryptocurrency to your wallet, you can withdraw it later, and it won’t go to some guy from China")
positive reviews as evidence
simplicity and convenience of the interface ("everything is intuitive - no hidden footnotes and buttons")
support for multiple cryptocurrencies
stability of the application
transaction processing time (no more than a day)
In addition, we identified a "killer feature": a function that should be provided to users immediately to force them to switch to a given wallet. We are talking about the deposit and withdrawal of funds through ATMs and terminals.
Based on these findings, we have formed the emphasis on wallet positioning and marketing strategy:
- The main message: the wallet bridges the gap between cryptocurrency and fiat.
- Value for the user: a decentralized cryptocurrency wallet based on stablecoin allowing you to:
withdraw cryptocurrency directly to a card issued in the country - no commission, exchangers and limits.
pay for everything: services, bills, phones, various online purchases.
replenish and withdraw crypto assets from the wallet in local currency at ATMs and partners’ terminals.
- Test multichannel campaign with the following target results:
for six months - 100,000 active users and 20,000 transactions per day by the end of the period;
200,000 transactions per day - 18 months after the launch of the wallet’s beta version.
- User re-survey: The BDC Consulting team proposed to develop a re-questionnaire survey that would determine the most popular product characteristics to use in advertising messages. In addition, the survey will help to characterize in detail the channels of consumption of information about cryptocurrencies for each segment of the target audience, which will increase the effectiveness of marketing channels.
Target Audience Research is the most important preparatory stage of an advertising campaign. It allows you to understand what worries and scares the target audience and to dispel user doubts at an early stage. Our experience shows that in-depth interviews and questionnaires more than justify the time and money spent and dramatically increase the efficiency of the marketing. If you would like to learn more about our target audience research methodology or order this service, contact BDC Consulting today.
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