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.

Image source

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.

Image source

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.

Image source

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.

Image source

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.

Conclusion

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.

Gaurav Belani

Gaurav Belani is a senior SEO and content marketing analyst at Growfusely, a content marketing agency that specialises in content and data-driven SEO. With more than seven years of experience in digital marketing, his articles have been featured on popular online publications related to EdTech, Business, Startups and many more. Connect with him on Linkedin and Twitter at @belanigaurav.

Share
Published by
Gaurav Belani

Recent Posts

MDIS Tashkent – 15 Years & Growing Strong

MDIS Tashkent, our first overseas campus, and an institution of choice for students in Uzbekistan,…

6 days ago

MDIS Alumiere: Norishka Cassy Dlima

Meet Norishka Cassy Dlima 🎓💡  She graduated with a Bachelor of Science (Hons) Biomedical Science…

2 weeks ago

Tips on Managing Time Effectively

Time Audit: Calculate how much time you actually spend on your current tasks  Set goals…

2 weeks ago

Biotechnology: Definition, History, Career and Courses

What is biotechnology exactly? What is its history and future and why should you study…

3 weeks ago

MDIS Alumière: Sharanjit Kaur

She graduated with a Bachelor of Science (Hons) in Business Studies and Finance in 2022…

3 weeks ago

High Demand for Nurses in the Next 10 Years (On a Global Scale)

The World Health Organization (WHO) calls for an investment in the worldwide acceleration of nursing…

4 weeks ago