November 6, 2018

Why blockchain is about to change customer experience

By now, you’ve probably heard a lot about Blockchain, and a lot of it was probably very technical discussions of how the technology functions, what a distributed ledger is and how it works with things like Bitcoin and Cryptocurrency. But I’m not here to discuss those things yet again with you. What I’d like to talk about is how Blockchain is going to change customer experience, and how it’s going to do this: through changes to how we trust, and what we do with our identifying data.

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At the moment, customers are at a disadvantage when it comes to performing ecommerce transactions. They have to give over all their data every time they want to buy something. Why? Well, of course the companies like this data, but more than that, all the transaction systems need to verify the customer’s identity every single time they want to complete a transaction. It may be for their safety, but this is a hassle, and really diminishes the customer experience.

But when you start introducing Blockchain verification systems, you can change this whole process, and that will have big and durable effects on ecommerce. What this means is that the customer can keep his or her identity verified in a third party, blockchain-secured system, and can rely on that to verify that identity for transactions, rather than handing over that data every time. This will make everything faster, and will improve the customer experience because they won’t feel like they had their privacy invaded every time. And this is going to put the power over that data back in the hands of the customers. This last part is important, because it will mean that customers will provide you with that data only if they get some kind of tangible value out of it. And you’re going to have to provide that value.

As a corollary to this, you’re going to have to earn, and re-earn the trust of your customers all the time. It’s no longer going to be the default condition that your customers are going to give you their data. The way I like to put it is that “Trust is going to be replaced by the blockchain.”

Customers are going to be the beneficiaries of these changes, as the customer experience gets more streamlined, more reliable, and more valuable, as a result. But companies can benefit, too. Once trust becomes commodified and automated, you can distinguish yourself through other avenues that play to your strengths and can make you stand out in really important ways. Now is the time to start!

Check out this video to learn more: