The Potential of Blockchain to Transform Customer Service
If you feel like every news channel now covers bitcoin, cryptocurrency, and blockchain more than any other financial technology, you’re not wrong. With 90% of European and North American banks exploring blockchain applications, it’s no wonder every company wants to learn more about this promising form of a shared database. This rings true to the customer service departments that could benefit from the technology the most.
Serving customers is the primary goal of every business. Earning profits is one of them too, but companies would quickly go bankrupt without a loyal customer base. Here’s where blockchain comes into play. Enabling businesses to provide secure payment methods, streamline and automate deliveries, and cater to disadvantaged customers, the potential of this decentralized public ledger is seemingly endless.
1. Blockchain keeps customer data safe with secure record-keeping
Data privacy is becoming a massive concern among customers who do their shopping online. In fact, as many as 78% of survey respondents confessed that they fear how much data is being collected by the companies they’re buying from. As e-commerce continues to grow — US retail sales are expected to surpass 500 million dollars in 2022 — a digital ledger like blockchain becomes the only hope for companies that strive to win the trust of their customers.
Whether it’s health records or passwords to personal accounts, it’s every business owner’s job to ensure the safety of customer information. Companies like Civic are setting the bar high with their blockchain-based identity management solution that provides businesses and individuals with the necessary tools to protect and control personal data.
2. Blockchain facilitates easy payments that don’t require an intermediary
Perhaps the most straightforward use of blockchain is in financial transactions. Although payments with bitcoin and other digital coins aren’t as widespread as payments with credit cards, the transparent nature of the blockchain makes it very likely to become the core of every business transaction in the near future.
The best part — blockchain-run payments eliminate the need for intermediaries. The free movement of money between businesses and their customers allows the payment processing to be cut in half. The same applies to cheque clearing and international payments that can take up to several weeks to reach the other party. Mastercard pioneers the concept with its new partnership with Georgia-based digital wallet company Bakkt enabling companies in the US to offer cryptocurrencies as rewards for transactions.
3. Blockchain introduces smart contracts that keep each party accountable
Contractual agreements can get complex and even messy if there’s a lot on the line. The best solution is to incorporate smart contracts that run on blockchain technology. These digital contracts feature multiple ‘If/Then’ clauses that keep both parties accountable for their actions. The automated essence of these contracts also helps resolve issues related to one of the sides not meeting the stipulations put forward by the agreement.
This so-called digitalization of consequences allows for hassle-free relationships between companies and clients. When a customer orders service, and it’s not delivered on time, he gets a refund. Since transactions are verified publicly, there’s no possibility for tampering with data. If something goes against what’s pre-determined by the smart contract, an automated action occurs.
4. Blockchain enables automated deliveries
Lost parcels and missed deliveries are a common occurrence in the retail industry. It’s also why customers leave negative reviews and choose not to do business with a company that failed to meet their expectations. This ruins brand reputation and makes it tricky to figure out how the parcel got lost.
With blockchain in place, each point of the supply chain is tracked, and the information about the parcel’s exact location is updated in real-time. As the order moves from one place to the next, the customer has a good idea about when to expect his parcel to arrive. And if the order doesn’t get delivered, the payment that the customer makes is withheld by the blockchain. It’s a win-win situation where the customer doesn’t get infuriated when his package gets lost, and the company doesn’t risk losing the customer.
5. Blockchain improves customer trust
Customer trust is at the core of every business. When the trust is broken, winning it back proves close to impossible. Business operations that run on blockchain ensure that the customer is always in the know, no matter if it’s the status of his payment or the amount of time it takes for his order to be dispatched.
This additional level of transparency fosters trust, which leads to customers coming back for more. When combined with modern customer service software that personalizes customer interactions, you increase your chances of retaining the customer.
Blockchain technology is here to stay and evolve. The sooner you’ll implement it in your business processes, the sooner you’ll be able to reap its benefits. Dig deeper into smart contracts, secure record-keeping, and automated transactions and deliveries, and customers will choose you instead of your competitor.
- The Potential of Blockchain to Transform Customer Service - December 17, 2021