Effective customer service is a fundamental cornerstone of any successful business. Communicating with customers and making them feel heard and appreciated is vital, failure to do so can severely damage a brand’s reputation.
When it comes to blockchain, most of us associate the tech with cryptocurrency. While blockchain can affect things like the XRP price, it also has a number of other applications and is quickly being adopted by a varied collection of different industries. In this guide, we examine how blockchain can be used in customer service. Read on to learn more.
How Does Blockchain Work?
Blockchain is a revolutionary new technology that was designed to facilitate transactions made using digital currencies like cryptocurrencies.
Blockchain networks serve as digital ledgers, with new transactions recorded as blocks and then added to a chain of previous transactions. This ledger is publicly accessible, meaning it is effective at reducing instances of fraud and cybercrime. In addition, all transactions are secured using cryptography, making the system even safer.
We often hear the term ‘decentralized’ used when discussing blockchain, but what does this actually mean? To put it simply, decentralized means blockchain networks are not controlled by banks or other financial institutions. Instead, transactions are verified by other users on the system. This means blockchain transactions can process rapidly and are not subject to fees and charges.
Blockchain technology can also be used for a wide range of other purposes. In recent years, we have seen it being used for things like supply chain management, gaming and app development. Let’s take a look at how it can be used for customer service.
Faster and More Secure Payments
Blockchain was designed to change the way payments are processed. The technology has been adopted by a number of global financial companies, favored for its security and efficiency attributes.
As a business, ensuring that payments for goods and services can be made easily should be a top priority. If a customer finds the payment process difficult or faces long wait times, this can see them fail to convert and turn to a competitor.
With blockchain, customer payments can be processed rapidly. As the technology is decentralized, transactions do not face long wait times or fees, even for cross-border payments. This makes the technology particularly valuable for brands that conduct lots of international business.
Customer Privacy
Collecting customer data has become an integral part of running a modern business. With this information, businesses can draw up more accurate customer profiles, allowing them to tweak product lines and implement more effective marketing campaigns.
However, ensuring that customer data is always securely stored is absolutely paramount. Digital privacy is a big talking point these days, and we’ve seen major global brands face huge fines for breaching privacy regulations.
Data storage can be costly, and protecting data against cyberattacks is even more so. Traditionally, businesses would have to fund and maintain security systems to keep up with the latest threats.
Storing customer data on blockchain platforms is a far more effective approach. It protects data against cybercriminals and data breaches. This will make customers feel more confident about divulging sensitive or personal information to your business.
Smart Contracts
Customers and businesses enter into contracts all the time. Even paying for a product or service is in itself a form of contract. However, traditional contracts can be broken, leaving one or more parties at a disadvantage.
Blockchain platforms allow for the development and implementation of smart contracts. These contracts are written in code, rather than on paper, and they offer a number of advantages over their traditional counterparts.
Smart contracts are self-executing. The code used to write them means that all parties are bound to uphold their end of the bargain. The process is fully automated, which ensures nobody can back out at the last minute.
These are proving incredibly valuable for customer service. They offer customers a higher level of security and confidence when entering into contractual agreements. They also benefit businesses by guaranteeing customers will fulfil their contractually agreed obligations.
Loyalty Programmes
Customers like to feel appreciated. For returning customers who have purchased products and services from a brand multiple times, offering them some kind of reward or show of gratitude can be an effective way of boosting brand image and ensuring they return again in the future. It can also help with word-of-mouth, the customer in question will likely tell friends and family about the positive experience they have had.
By using blockchain platforms, businesses can track customer purchases and activity in detail. With this information, brands can then identify the most loyal customers and award them accordingly with special discounts and offers.
This is key to building further customer loyalty and improving brand reputation. Customers will be able to see how much you value their business, increasing the likelihood of them returning in the future and recommending your products.
Conclusion
Blockchain technology is only for the financial sector. It can be used by all businesses to improve the level of customer service they offer. With blockchain tech, brands can process payments more securely and efficiently, safeguard customer data, implement smart contracts and offer customer loyalty programmes.
