November 5, 2018

How blockchain is changing customer experience through identity and trust

We’ve all heard a lot by this point on how much Blockchain will change payment and processing. That’s the Bitcoin and cryptocurrency story. But that’s not what I want to talk about with you in this blog. I want to talk to you about how blockchain can and will transform your relationship to customer experience. This is going to have two major components: identity and trust.

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Right now, ecommerce sites have to gather a huge amount of information from customers before they can conclude a transaction, both because those sites like to have that information, but also because in order to make those transactions happen, the sites need to be able to verify that you are who you say you are. In effect, this is to prevent fraud. But this comes at a cost to the customer, and thereby damages the customer experience.

However, the Blockchain promises to change all that. By holding the keys to customer identity in an independent, trusted location, the Blockchain can step in between the customer and company, to verify that identity independently. The customer can trust it, and the company can trust it, because they both know that within the Blockchain identities cannot be changed. This will put the power over their identifying information back in the customer’s hands, and thereby improve the customer experience. Customers will have control over whether they provide their data, or not. If they can see some utility, they might. Otherwise, no way.

What this will mean for companies is that they will have to earn, and then re-earn the trust of their customers. It won’t come as a given that the customer will turn over information. As a company, you’re going to have to think about how you can earn this trust, and really deliver extra value to the customer for collecting any kind of his or her personal data. Because when “Trust is replaced by the Blockchain,” the customer’s trust of you is no longer the default.

Overall, this is going to be to the long-term benefit of the customer experience, as the terms of the interaction change, and the opportunities are there for you to distinguish yourself. This is the time to start thinking about it! 

Check out this video to hear more!