The Impact Of Blockchain On Online Customer Experience
The blockchain industry is rapidly expanding. Its international market is anticipated to reach $20 billion by 2024.
And this technology has a huge impact on online customer experience.
But what exactly is blockchain?
Blockchain, in simple terms, can be understood as a system wherein online transactions are recorded. It is the core technology for cryptocurrencies such as bitcoin. Since a blockchain encrypts, validates, and permanently records transactions, it ensures the cryptocurrency’s integrity.
Customer experience, also referred to as CX, on the other hand, is your customers’ insight into their experience with your brand as a whole.
Every interaction your brand has with a customer starting from website navigation to customer service will determine the CX. Thus, offering a great customer experience is the key to business success.
Blockchain technology is being used in various industries today, including FinTech, real estate, digital marketing, healthcare, and more, to provide better CX.
According to a report on Forbes, 55% of healthcare applications will implement blockchain for commercial deployment by 2025. And 77% of financial services companies are thinking of implementing blockchain as part of an in-production system by 2020.
In this article, let us look closely at the impact of blockchain on online customer experience.
How blockchain can help create a better customer experience
● Creating smart contracts
Blockchains can facilitate smart contracts. People are reluctant to enter into a contract with someone whom they have never met for fear of being cheated upon. Or for instance, people are unable to become an investor in a small company overseas because they can’t trust the other party.
By using blockchain, you can tie contractual obligations to specific actions by putting forth conditions. You can hold the transaction in a smart contract and record it on the blockchain. If the promised service can’t be delivered by the agreed date, the customer can get a refund.
Blockchain transactions are verified publicly and cannot be tampered with. It even eliminates the need for third parties, thus reducing complex procedures and saving time and cost.
● Ensuring customer data is secure
If you have plans to build an online store, the security of your customers should be your first priority. Only then can you be sure of providing a great customer experience.
Customers, these days, are reluctant to shop online as data breach incidents are very high. Even the big names and top companies are not spared. In one incident, hackers reportedly stole the IDs and encrypted passwords of 38 million of Adobe’s active users. You will not only lose resources if such data breaches happen but lose your loyal customers as well, for good.
You can avoid data breach issues by encrypting your customer’s data with blockchain technology. Once implemented, the data can’t be modified or tampered with.
Blockchain also allows you to save a cryptographic signature of a document or file. Thus, users can rest assured that a file is un-tampered, without having to save the entire file on the Blockchain.
Since blockchain has a decentralised nature, cross-checking file signatures are made possible across all the ledgers on all the intersections.
When your customer’s data is safe, you can offer superior CX.
● Improving customer loyalty
There are many reasons why customers switch brands. And one of them is transparency.
Customers, more than anything, want transparency.
Blockchain has the ability to create business transparency. Since data transferred on Blockchain is transparent, you can leverage it to build trust among consumers.
For instance, your company’s portal can show all blockchain activity linked with a customer and allow him/her to view it any time. It will boost your brand loyalty and promote better customer service.
Ever since Blockchain was introduced in 2008 to serve as the public transaction ledger of bitcoin, its importance has been rapidly growing. It has especially made a significant impact on online customer experience.
Blockchain can help create smart contracts, provide data security through
encryption and saving the cryptographic signature of a document and help improve customer loyalty by demonstrating increased transparency.
If you want to attain business success, improving your customer experience should be your primary goal. Adopting Blockchain technology will make achieving your goal easier. Try implementing Blockchain technology today and see your CX improve!
This article is contributed by Gaurav Belani, a senior SEO and content marketing analyst at Growfusely.