Blockchain and the plethora of cryptocurrencies it has produced is the most important technological innovation since the beginning of the internet. It has the potential to transform how people manage society, how people are directed and the way they do business. However, what is it and how it can improve the customer experience?
A blockchain is a shared digital ledger of records which is visible to all parties. It’s secured through cryptography. The network database keeps a continuously validated and updated record of value and ownership.
Through this trusted, shared and global network, we can validate and transfer data, documents, and value at scale without long process times, costly processing costs or intermediaries. The advantages of this digital technology are efficiency, speed, and transparency. And even though there’s a substantial amount of publicity around cryptocurrencies and issues around the bubble made by hypothetical investors, the real-world effect of blockchain tech is noticeable.
Customer Experience & Blockchain Technology
The basics of customer experience are sourced in the trust, which a customer puts in a brand. The trust which an organization will be true to its words, offer the products/service as provided, live up to the promises of the brand and not let the customer down.
Four factors negatively affect corporation regulation according to The Harris Reputation Quotient. These are:
- Product recalls because of contamination which may cause illness
- Data or security breaches
- Illegal actions by corporate leaders
- Misinterpreting facts about the product/service
The technology has massive potential to enhance customer experience. That’s because the benefits of digital ledger technology of blockchain are transparency and trust.
The technology allows peer-to-peer transactions without the necessity of a trusted intermediary. That means brands can engage directly with customers and have a great level of influence over the customer journey. XinFin, for instance, facilitates decentralized financing and peer-to-peer trading for economic development.
Using XDC Token and XinFin, institutions can connect with global financiers and suppliers. It involves an industrial-grade blockchain platform with the power to integrate IoT devices. The result is a system which can host applications across different industries. XinFin strives to connect global infrastructure deficit with the power of blockchain technology.
Another aspect of how blockchain can enhance customer experience is that cryptography allows increased protection and security of identity and data. It means customers can monetize and own their data leading that will result in a re-imagination of loyalty programs.
Moreover, data is immutable, hence lowering fraud and enhancing transparency. That also means that a claim about the brand, the origin of an asset and company performance is indisputable. It could include customer retention rates, NPS scores as well as product defect ratios.
Corporations which adopt this technology will be transparent. They aren’t hiding behind incomprehensible contract terms and conditions. They establish trust by overhauling obsolete loyalty programs to create unique, traceable customer rewards. Therefore, blockchain technology is a huge deal for customer experience experts. It enables organizations to establish propositions which make long-term loyalty and genuine value for customers.