The technologies driving cryptocurrencies such as Bitcoin and Etherium might not be a household name as yet but it really is getting traction quick. The future of all these cryptocurrencies might be uncertain, but Blockchain by itself is likely to stick around. They have started out a world of opportunities and can potentially transform the way in which current technology and business procedures function. Keeping that in mind, you will concentrate on how Blockchain will probably affect Customer Relationship Management down the road.
What is Blockchain?
On the off possibility you have not hopped on to the Bitcoin bandwagon yet and are completely not familiar with Blockchain, allow us to assist you to figure it out. Basically, a block chain is an ever-growing listing of interlinked data or ‘blocks’. These blocks are cryptographically safe and resistant to any external tampering. The blockchain features as an open, decentralized ledger which efficiently keep track of transaction between two parties within a permanent and verifiable way.
How Blockchain will Change CRM:
Using the fundamentals out of the way, I believe we have been within a somewhat much better position to talk about how Blockchain can potentially change CRM within the years to come. Here are five places which are more likely to benefit the most using this technology:
1. Enhanced Security:
The blockchain generally is a chain of blocks, where each block consists of transaction data. Every block is linked to neighboring blocks cryptographically. They are guaranteed in a way that taking part consumers use network keys to restrict not authorized access. Additionally almost all CRM databases are hosted on cloud servers. Although the cloud security protocols have come a long ways, concerns regarding Cloud security aren’t totally unfounded. They are primarily centralized systems and therefore, have an inherent single point of failure. Comparatively, blockchains are decentralized and distributed across frequently synchronized peer-to-peer networks. This will make tampering almost impossible since it might need massive computing power to access the whole blockchain. Consequently, possibility of fraud and repudiation may also be removed.
2. Better Transparency:
Blockchain is really a decentralized entity. That enables your business to safely and transparently manage your clients with no need for a financial institution i.e. bank or a 3rd party agent. The elimination of those ‘middlemen’ brings about higher efficiency and speed in all of your dealings.
3. Improved User Privacy Control:
With concerns regarding Personal information security increasing, CRM systems will need to address them through adjusting how they manage client data. Owing to the decentralized and secure nature, blockchain provides method to the idea of a self-sovereign identification. It may store/encrypt personal data and verify without having actually sharing any specifics using the concerned parties. This specific grants users greater control over their identity.
4. Data Cleansing:
Whether it is due to inept data import tools or human negligence, CRM users worldwide have to deal with inaccurate or duplicate data at some level. With blockchain in place, a customer can have their very own individual block which presents companies having a specific and accurate picture of the personal data, past transactions, subscriptions, etc. Hence, blockchain allows these companies circumvent the issue of inaccurate, obsolete and duplicate information records altogether. This consequently yields better insights into customers and helps businesses engage them more effectively.
5. Loyalty Programs:
Loyalty programs aim to drive profits by adding value to the customer experience. However, due to their variable mileage, volatile value and associated privacy concerns, they prove to be cumbersome for customers and yield a low ROI. However, in a manner very similar to cryptocurrencies, brands can make use of blockchain to reimagine and reinvigorate their loyalty programs.
With blockchain, consumers would have a single decentralized wallet that is compatible with all brands. They would not be bound by the rules and limitations of individual brands and point redemption would be greatly simplified. The consumer will have far greater control over the whole experience and brands will complete for their wallet by offering them better deals.
Consultation with Experts:
Blockchain does not only modify how you process CRM but contains the potential to essentially update business operating models generally. Using the technologies still in the primary phase, this appears like a bold claim to make. However keeping in the view all of that it is capable of, we expect this is a justifiable one.