How Blockchain Technology Will Change Customer Experience
Blockchain technology was initially designed for cryptocurrency. Gaming sites such as those that can be found in online casino reviews are among the first to use the technology to transfer funds back and forth to customer accounts.
However, most consumers say they aren’t familiar with blockchain technology. According to a recent HSBC study, 59% of respondents said they had never heard of it, with more than 80% of those saying they don’t understand what it’s used for.
When blockchain technology first came into use several years ago, most people recognized it as a term somehow related to Bitcoin and cryptocurrency. Some even passed it off as another tech fad that would eventually die.
However, with the consumer market slowly shifting to an all-digital economy, the increased demand for improved customer service and more consumer trust is not an easy task. The problem of meeting customer expectations can be solved by blockchain technology, which could forever change the customer’s online experience. Nevertheless, blockchain technology has a few fundamental ways customers will benefit.
Simplified Payments
One of the essential factors in any customer experience is convenience. Blockchain technology can help in this aspect by making payments simple while eliminating paperwork. The technology eliminates the need for any middleman between customers and a company, which saves costs that can later be transferred to the customer.
Using fully automated processes, businesses and their customers benefit from the savings, resulting in better products and services at a lower cost. Transactions made using blockchain technology are unalterable. As a result, any errors can immediately be resolved by looking at the history of the transaction to identify the party in error. However, the idea of companies using this method would mean the data would have to be structured to be stored in a blockchain, which could be costly for some businesses.
Improved Transparency
It makes sense for most consumers to have as much information about their products as possible, like where their food comes from or working conditions in the factory that makes their shoes. Blockchain technology will allow customers to verify everything about the products they buy, with companies having no way to manipulate the system.
In addition, this forces companies to be accountable. It ensures every level of their businesses meets the standards of their consumers and all government regulations pertaining to their industry.
Data Ownership
Blockchain technology will soon change online data ownership and restore its control to the consumer, who will have the power to determine what companies have access to their information. Consumers often don’t realize when they provide companies permission to use their data when using their applications.
Customer data can now be collected using various methods, such as smart devices and automobiles. Companies also don’t publicize who they’re partnered with or to whom they sell customer information. However, blockchain technology is helping to reduce these problems, with customers increasingly demanding to control their personal data.
Blockchain-Powered Contracts
Administering contracts is a process that uses many resources and is sometimes quite complicated. However, there is a convenient process in which consumers can simplify the process. Blockchain technology has the capability to automate the consequences when there is contractual non-compliance without any third-party involvement.
Using smart contracts, anytime a party doesn’t hold their contractual obligation, either side can immediately take action. It also reduces the resources needed to correct the situation and spares customers from needless hassle.
Authenticating Products
The counterfeit goods market has forever been the enemy of manufacturers and their customers. For example, pharmaceutical companies lose about $200 million annually due to counterfeit drugs.
This leads to many adverse customer reactions attributed to them. Since the blockchain digital ledger will track every step of the supply chain, companies can show customers every step of the process, which provides proof that the product is authentic. In addition, all goods can be certified, making reporting and tracking stolen merchandise easier.
