If the town you live in is anything like mine, you may have noticed several small shops beginning to use Square for credit card transactions. Aside from the nearly unrecognizable signature we have to make with a fingertip, it seems to work well. When shopping online, most of us are familiar with PayPal.
But has anyone used Bitcoin recently? Or even heard of it?
If not, no surprise. But believe it or not, you may see it soon, at the mom and pop shop down the road.
The digital currency company, which launched five years ago and boasts no formal corporate ownership, is admittedly not a household name. Yet seems to be finding a sweet spot within – of all things – the small business, traditional storefront community.
According to an article on CNNMoney.com, about 26,000 businesses around the world use BitPay, the largest processor of Bitcoin payments. That’s up from about 1,000 just two years ago. Among those, the article goes on to say, 20 percent are merchants with actual storefronts and active practices, and many are in tech-savvy cities like New York, San Francisco and Atlanta.
So, what makes a company like Bitcoin, who is going up against the bigger players in the virtual payment arena, survive where others may have crumbled? From a PR perspective, the answer is based on three basic but key components:
Knowing the Competition
Whereas credit card processing fees hover around the two to three percent range, Bitcoin charges one percent or less. Especially appealing to small businesses, where every dime impacts the bottom line.
Knowing Your Strengths
Small business owners quoted in the CNN article say that simply put, Bitcoin is fast and easy. With an estimated five million active “digital wallets” in play, the company allows participating businesses to have payments converted into cash, kept as Bitcoins, or mixed as a combination of the two as best fits their model.
It is also no coincidence that the Bitcoin presence is strongest in tech-savvy markets. The innovative model captures attention in these metros, giving small businesses a potential marketing advantage and an opportunity to demonstrate a forward thinking culture.
Know Your Weaknesses
As an open source software with no formal “owner,” and its fair share of bad press (high profile hacker attack shutdown, anyone?), Bitcoin may well never be ready for the bigger stage. And that may be just fine by them.
By understanding the company’s limitations, its thought leaders can focus entirely on strengths, bypassing the global stage and embracing the mom and pops. If serving the greater masses is not their strong suit – to the point of being risky – then super serving their small business base is where success will lie.
When it comes to PR, many companies want to shoot for the moon. Capture the big fish. Make a global splash. But when it comes to smart PR, far more strategy is involved. Well researched, targeted efforts will produce more ROI than a broad stroke.
We would love to help you define who it is your company or product can service best, and architect the plan which can maximize your PR presence. To get started with a fact finding sit-down, give us a call at 203.762.8833 or visit www.klcpr.com.
– BML
