Customer engagement hardly meets the world of financial technology. Yet blockchain is a tool that can revolutionize the way people do business. It can influence and transform the way companies will engage with their target market. This is far beyond its potential to transform banking transactions and the entire financial sector.
Surprisingly, the blockchain has an immense capacity to improve service to consumers. It can extend connectivity for vulnerable consumers. Additionally, it can make businesses appear transparent and protect all kinds of customer-to-business experiences.
Today, blockchain is not only seen in financial environments. There are many examples of blockchain technologies being used in a wide variety of industries with diverse applications. It is now used outside the financial and banking sector for voluntary contributions, voting networks, HR processes, etc. With others technologies that benefit businesses, there are also many possible customer interaction applications for the blockchain.
Read on to find out how blockchain could backfire and influence customer service functions!
Index – How blockchain improves customer engagement
Building deeper relationships
Blockchain can dramatically affect consumer engagement. However, actual adoption would primarily depend on how businesses use blockchain to rethink the contact points on the user’s path. Business owners and marketers can use blockchain to deploy a network of loyalty services intended to lock in new customers.
About 77% of existing consumers join loyalty programs. This signals the need to transform the way businesses drive customer activity. It can also be noted that it is necessary to know how to retain customers involved in repeat purchases. By connecting the content to a virtual coin assigned to the customer’s account, companies can explore the blockchain to allow customers to share loyalty points in real time.
Just like IoT, blockchain could revolutionize physical products. There is also a chance that non-physical trading will change in the long run. Anyone can achieve this through smart contracts, authorized by the blockchain. Thanks to the blockchain, contractual commitments can be linked to individual acts using the “If / Then” paradigm. The blockchain can activate or deactivate these actions until the contractual conditions are met or do not satisfy the present technology.
Use of digital wallets
Digital wallets will allow users to recover their credits at their convenience. In return, advertisers will use this data analytics to promote a solid view of their customer base. This will increase awareness of the new offering and increase sales rates.
After-sales support is an important determinant of customer revenue, as customers demand a successful end-to-end experience. Self-service is becoming increasingly popular, with consumers choosing online assistance instead of going to support agents. When built and designed correctly, blockchain through digital wallets can automate these transfers, offering innovation and experience to customers.
There are horror stories of companies that have struggled to protect consumer data. Whether it’s passwords, health records, or even information that exposes personal opinions, businesses and customers understandably have growing concerns about protecting consumer data.
Consumers are convinced that companies have only fair and proportionate knowledge about them. Although this is not always the case.
With the help of blockchain, businesses don’t need to keep confidential details that consumers need to complete a business transaction. Businesses wouldn’t have to think about keeping data safe, sterile or legal because it would not be centralized. Customers would not have to worry about unnecessary or insecure personal information data collected by companies.
Beyond the processing of consumer identity data, there are also opportunities for other forms of blockchain-based records management. Commonly used today in the healthcare industry, some organizations are planning to use the blockchain to store healthcare information such as medical bills and patient-physicist correspondence. The existence of blockchain-based databases ensures that this knowledge can be simultaneously protected by encryption while ensuring that the records created can never be interfered with.
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Bitcoin and other cryptocurrencies use the blockchain to transfer funds from one individual to another. It is a stable and open mechanism that works even without the need for a central bank.
The blockchain allows foreigners to trade without needing a third party to control the transaction.
Clearance and proof of identity take some time. International transfers can be time consuming and usually come with high costs. Many customers are vulnerable or weakened, usually do not have a bank account, or cannot access a bank either.
Payments made through blockchain technology could eliminate these banking problems. It can allow money to travel easily between businesses and their customers, without the need for banks or payment networks to act as intermediaries.
Customers usually complain that they paid for a product or service that they did not receive. Complaining consumers are the tip of the iceberg with issues with shipping and receiving products. These clients have missed out on business opportunities because they are overwhelmed with negativity about a particular brand and even challenge organizations to work on it. These types of customers simply walk away and move on to competitors.
In the future, companies will only be able to take client funds if the product has been verified on blockchain technology obtained by the client. Businesses might see this form of process improvement facilitated by blockchain as a competitive differentiator. This can help consumers avoid the risk of missing out if a product kit goes astray, improving customer engagement along the way.
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Blockchain continues to gain traction in the business sector. This innovation seems to be manageable for most businesses. It is also a flexible investment space for brands and organizations where customer engagement is important. As technology continues to evolve, it disrupts existing digital marketing models that sometimes fail to increase openness with a smoother experience.
The bond between business and customers is redefining itself these days. Customer engagement and satisfaction can traditionally be lost along the buyer’s journey.
However, with the growing influence of blockchain, it is now being strengthened. This degree of commitment allows customers to connect with businesses. It also gives businesses access to precise data and analytics, essentially reinventing the complexities of customer engagement.