Blockchain Technology to Enhance the Consumer Experience

Blockchain Technology to Enhance the Consumer Experience

Companies have been able to recognize the importance of blockchain, so much so that according to a recent study by PwC, 84% of the organizations surveyed had some involvement in this technology, and although 30% see China as the country that leads their use, is already being implemented in Spain. 

Blockchain Customer Experience

Blockchain technology is being applied to various fields such as banking, identity, supply chain traceability, insurance, IoT decentralization, notary, etc. 

So important and disruptive is this technology that a recent study by Gartner puts its future into value, predicting that the commercial value added by blockchain will grow by more than 176 million dollars in 2025 and will continue to increase until it exceeds 3.1 billion in 2030.

Trust and Transparency 

Blockchain technology is based on the transparency and traceability of the transferred data, so companies can take advantage of this feature to foster trust among consumers, showing, for example, all the activity in perpetuity associated with the customers. 

This can create greater brand loyalty and a better user experience (CX) in general, thanks to increased customer trust, something essential in the technological context in which we live. 

According to the Drive Long-Term Trust & Loyalty Through Transparency study, up to 94% of consumers indicated that they were more likely to be loyal to a brand that offers transparency. In comparison, 73% said they were willing to pay more for a product that offers full transparency.

Security and Traceability

One of the main areas to improve is cybersecurity, specifically, the security of their customers’ data. According to the recent Hiscox Cyber ​​Readiness Report, 45% of Spanish SMEs consider themselves to be ‘cyber novices’ and therefore have increased their IT budget by 56%, from €95 million in 2020 to €149 million in 2021. 

One of the main technologies in which they have invested their budget is the blockchain since it can guarantee the security and traceability of customer data. Each process and transaction is encrypted and given a unique identification code, verified by the community in a fully decentralized manner. 

Thus, customers will be able to ensure the reliability of their data and their security, seeing if there has been someone who has manipulated that data and guaranteeing the independence of the entire process.

Simplification and Good Use of Data

According to data from Comscore and Entrepreneur, 56% of shoppers expect a wide variety of payment options every time they arrive at the virtual box, but, at the same time, customers are looking for greater agility in the purchase process. 

The use of the blockchain completely changes this paradigm since the client does not have to provide all their data to the company, but rather these are replaced by a blockchain code that serves to identify themselves. 

Therefore, the Customer Experience would be completely transformed, being a faster and simpler purchasing process. In contrast, the customer chooses to provide data to the companies that offer the best reputation and service. 

These companies could make the most of this data by integrating it into a CRM that would allow for rapid blending and merging of existing data, along with data integrity checks. 

Smart Contracts 

The online purchase of all kinds of goods and services has increased significantly during the last year. According to the ‘ 2021 E-commerce Study ‘, in 2021, ecommerce users buy online 3.8 times a month, compared to 2020, and the average cost per act of purchase also increases, reaching an average value of €89(€68 in 2020 and €64 in 2019). 

Implementing blockchain technology would ensure the optimal way of delivering all types of packages to customers. Currently, no explicit contract guarantees the status of the deliveries of goods and services. 

Its application would imply an agreement before the purchase that will formalize an amount to be paid for correct delivery and another if it is defective, thus benefiting the customer who is formally assured of optimal delivery and the best possible customer experience.

Companies are beginning to see the importance of blockchain for the future of their business, and many of them have already incorporated this technology into their next investment plans. 

Beyond the inherent benefits of this technology, the challenge for companies is to get the most out of this technology to improve their customer experience, thus maximizing long-term investment.

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