How Will Blockchain Transform Customer Retention And CRM For Business Growth

Blockchain is going to overwhelmingly change the world that we see today.

Well, this might be a profoundly bold claim- but it is one that we feel is justified.

This is because; even though so far Blockchain as a business growth technology has been the domain of Fintech industry but as of date this has started to change. 

It has been observed that some of the greatest opportunities of Blockchain are within ‘Marketing’. Since this latest business growth technology can be used to develop customer-centric relationships and propositions that might motivate and empower consumers while also delivering stellar efficiency and responsiveness for rapid revenue growth. 

However, unfortunately even today most marketers are not yet conversant with Blockchain and its opportunities.

Therefore, in this post, we have revealed exactly what this Blockchain technology is all about and how we assume Blockchain will fundamentally change our approach towards customer retention and the use of easy to use CRM platform be it Salesforce or any other Salesforce Alternative CRM solutions for boosting customer experience with brands all across the globe. 

What is Blockchain?

Blockchain is defined as a database that takes into account a number of records and places them in a block (more like assembling them in a proper sequence on a single sheet of paper). Each block is thereafter “chained” to the next block, by using a cryptographic signature, which enables the chain of blocks to be used as a ledger that can be corroborated and shared by anyone with the appropriate permissions to access it.

Blockchain according to HBR (Harvard Business Review) published in May 2016 states that:

"The technology most likely to change the next decade of business is not the social web, big data, the cloud, robotics, or even artificial intelligence. It’s the Blockchain."

So Blockchain in layman’s terms is a business growth technology that aids in:

•  Distributing digital assets (music, money, loyalty points) across global ledgers

•  Post transactions across billions of computers across the globe

•  Create a block every 10 min. and link it to a time-stamped chain of blocks

•  Self-execute agreements among smart contacts between businesses and individuals that use the Blockchain

Blockchain(s) can be permission-less (open to all) or permissioned (closed access).

Now for every business according to its industry, the implications of using Blockchain are quite profound:

•  Blockchain is a disruptive technology as it gets rid of intermediaries and the costs involved with them (like consumers can transfer money directly without the need of banks)

•  Blockchain will allow consumers to monetize and own their data

•  Blockchain will help to make peer-to-peer (P2P) dealings become the norm

•  Blockchain technology is extremely secured and un-hackable owing to the distributed nature of Blockchain that will aid in protecting privacy

Why should marketers take Blockchain technology seriously?

Blockchain is no longer a theme that is being hyped by the industry neither an emerging idea, it is a reality.

According to research done by Deloitte, it showed that:

•  Venture capitalists have invested billions of dollar in more than 120 Blockchain-related startups.

•  Thirty world’s largest banks have joined a consortium to build Blockchain solutions.

•  Microsoft has already launched a cloud-based Blockchain service.

•  Nasdaq is designing a Blockchain-powered private market exchange

•  Blockchain prototypes, concepts, are emerging in every major industry

Therefore, it is evident that Blockchain, in reality, will create disruptive and viable opportunities for marketers to create and deliver customer relationship due to its peer-to-peer nature which will deliver genuine engagements that are customer-centric for businesses that are ready and interested to invest in long-term customer experience and loyalty.   

How will customer retention and CRM get disrupted by Blockchain?

Here is a wonderful illustration (inspired by Deloitte) of what Blockchain-enabled CX (Customer Experience) could look like:

Therefore we think that the following use cases subsist in customer retention and easy to use CRM space:

• Use of loyalty points as global payment economy

• Exchange of loyalty points among peer-to-peers in the marketplace

• Irrefutable customer database, where service issues and questions from the customers can be rapidly identified without any ambiguity

• Multiple customer programs can be managed from a single wallet

• A coalition of brands will offer the customers a more complete experience

The Implications

Now with such awesome opportunities also come profound implications that will decide which brands will be able to lead and will be able to distinguish their customer propositions by use of Blockchain.

Therefore one you buy CRM built with Blockchain capabilities it is likely to:

• Boost redemption of rewards, incentives, and promotions, which will be seen as a positive endeavor to brands that will recognize this technology for engaging customers. 

• Interactions and experiences will be increasingly controlled by modern customers and not by brands or businesses. 

• There will be little need for intermediaries who might add costs and dictate processes. 

• Brands will be able to get genuinely engaged for building long-term loyalties (not just promise great rewards that are never fulfilled by the companies).

• There will be less obscurity in terms and conditions which imply more transparency and accountability between consumers and businesses.

• For the first time businesses will be able to find a real-time view of the behaviors of their customers by offering traceable customer rewards. 

• Customer experience will be more responsive and much faster with increased demands on automated contact strategies and new business rules. 

Why Blockchain is a big deal for marketers?

Once you buy CRM built with Blockchain technology it will help in creating indisputable records of customer behaviors, relationships, and value exchange, as consumer-driven P2P relationships are becoming possible with this business growth technology in ways marketers can only start to imagine for better understanding their customers to build propositions that supports repeat engagements.