Bitcoin and Etherium are rising names in the industry. As cryptocurrency gains popularity, its uses in other fields are being debated upon and even executed in some. There is pushback for cryptocurrencies due to certain uncertainty that is attached to them. However, it has opened up a world of possibilities and has shown the potential to change the existing technologies and how we conduct business.
Let us focus on how Blockchain can improve Customer Relationship Management software.
Blockchain: An Introduction
Blockchain is simply an ever-growing list of interlinked blocks or records. The blocks are secure cryptographically and cannot be tampered with externally.
How Blockchain is going to affect CRM?
Blockchain is going to have a massive impact on the CRM industry. Apart from the enhanced security and improved organisational transparency, we can expect to see other changes down the line.
Blockchain is what the name suggests. It is a chain of blocks wherein every block contains data about a transaction made. With cryptographical linking with neighbouring blocks, these are secured such that they can be accessed with network keys only. This reduces the chances of unauthorised access.
Adding to this, CRM databases are hosted by cloud servers. Cloud computing for CRM has its own benefits however many concerns about security have been raised ever since. Cloud has come a long way but the centralised system for storing data would give access to all the customer and organisation information to the hackers in one trial.
If we compare it to Blockchain, these are decentralised and are distributed cross synchronised peer-to-peer networks. This makes tampering with data almost impossible because one will need a massive amount of computing power to be able to access the Blockchain. Subsequently, chances of fraud and repudiation attacks are significantly reduced.
Boost in Data Transparency
As mentioned before, Blockchain is decentralised. Therefore, your organisation can deal with customers securely and transparently. Since there is no third-party interference, you can make the process far more efficient and make sure that the customers are receiving correct data and you will be able to gauge their reactions personally for more customer intuitive decision making.
Also Read: Understanding Guest Experience and Loyalty in Hospitality Industry
Improvement in Data Privacy Control
CRM systems are all about storing customers' needs. wants, preferences, and transaction records. This information consists of sensitive data such as emails, numbers, credit cards, addresses etc. But additional concerns surrounding data privacy control have not been addressed.
Personal data security concerns are at an all-time high. Customers are aware of companies storing their data and now want assurance that their data privacy will be maintained. Data privacy is the proper handling of sensitive data that includes customers' personal data.
Because Blockchain is decentralised, it gives the idea of creating a self-sovereign identity. It will store the personal information of the customers and verify it without sharing any specifics with the concerned parties. Users will have greater control over their identities.
Also, companies can use private Blockchains to ensure that a set of authorised nodes can participate in that network. It will not be open to the public and sensitive data of the customers can be kept secure.
CRM tools do face issues with data duplication and errors. It may be because of human negligence or it may be because of issues with data import tools, CRM is not foolproof and mistakes are made.
However, with Blockchain, the customers will have their personal keys to verify the data that is available with the companies. Their preference, personal information, last transactions, subscriptions etc are all stored in blocks, making the issue of data inaccuracy obsolete. Data that is already present will not be duplicated. In the end, businesses will be able to interact with customers effectively using customer-verified information.
Intuitive Loyalty Programs
Loyalty programs require much more than some points for every time the customer makes a purchase. They are about the customer experience now and if a business is looking to drive up its profits, the first thing they need to do is offer an incredibly personalised customer experience.
Using Blockchain, brands can recreate intuitive loyalty programs that are in tune with the specific needs of every customer and will be able to capture the attention of the consumers.
As customers will use one decentralised wallet that works with all brands, they will not be bound by the rules or limitations of one brand. Using points from loyalty programs will be very easy and consumers will have control over the customer experience rather than the company.
Blockchain is bound to change the way we have used CRM. It will persuade businesses to change their operating models with something that offers Privacy and User control to the customers.
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