The impact of blockchain on CX
Blockchain will prove to be a manageable and scalable investment area for brands across industries
For nearly a decade, blockchain and cryptocurrencies have been hailed as catalysts that could and would shake up industries. These decentralised databases govern and record transactions from human or machine interactions, such as the sending of money from one person to another.
Often touted as world-changing, blockchain solutions have made a big splash in the market and gained the attention of potential customers. Spending on the technology has soared from $1.5bn to $4.1bn over the last two years.
The blockchain martech industry has proven ripe for disruption, with brands like Unilever, Nestlé and McDonald’s adopting the technology to improve transparency in their digital campaigns.
Blockchain solutions are fast becoming mainstream in marketing, helping to eradicate advertising fraud and proving their value in overcoming data inefficiency challenges. But according to the CMO Survey, only eight percent of firms believe the use of blockchain in marketing is important, with bad user experience, design and lack of understanding posing significant barriers to its widespread adoption.
Given its high degree of security and accessibility, however, blockchain networks hold significant potential to drive growth and long-term loyalty with customers.
This article discusses the expanding opportunities for marketers to overcome new pain points in the user journey, and build better relationships with customers through blockchain.
Disrupting marketing with blockchain technology
Blockchain is opening up a largely untapped digital advertising and marketing arena. Customer-centric marketing is now non-negotiable for firms wanting to hold onto their customer base and ultimately survive in a fiercely competitive environment.
Given this trend, companies are taking advantage of emerging martech solutions to transform how they surprise and delight their customers.
The vast majority of companies want the contact details of their customers, which – even though it’s intended to personalise offerings – is typically found to be invasive. Most blockchain solutions can help to level the playing field by eliminating intermediaries and storing customer data safely, thus returning a degree of power to the user.
Businesses can allow users more control over their personal information; who has access to it, how they got access to it and how it can be used. Customers have greater freedom to choose to sell their data directly to marketers, while simultaneously avoiding processing fees and interference from third parties.
Building deeper relationships with customers
Blockchain has the potential to dramatically impact customer experiences, but successful implementation will be largely dependent on how companies leverage the technology to reimagine touchpoints in the user journey. There is scope for marketers to use blockchain to manage a secure network of loyalty programmes designed to lock in new customers.
By linking content with a virtual token – credited to the customer’s account – companies can leverage blockchain to entice users to exchange loyalty points in real-time.
Taking this a step further, digital wallets can be used to permit users to redeem their credits at their convenience. In return, marketers can use these data insights to cultivate a strong understanding of their customer base to drive awareness of a new product and improve conversion rates.
After-sales service is also a huge determiner of customer churn, as consumers seek a fulfilling end-to-end experience. Self-service has fast become popular with customers preferring online help instead of turning to support agents.
Blockchain, when developed and configured in the right way, is capable of automating these support transactions and storing this valuable data in blocks – to which customers can access.
What differentiates this from traditional self-service platforms is that customers are in control of their data and can choose instant paid support, boosting revenues and improving turnaround times.
Greater access to highly-usable customer intelligence also enables marketers to run user-tailored campaigns with enhanced personalisation. This can help counteract negative sentiment towards engagement that lacks personalisation like poorly-devised pop-up ads for example – which have a 73% disapproval rating.
Though marketers pay for incentive data collection, blockchain-enabled marketing helps to deliver personalised prices and generate better leads. This smart approach tackles the common issue of being burdened with incomplete customer information, which can typically hinder the success of marketing campaigns.
Future of blockchain marketing
As blockchain continues to build momentum in the marketing space, the technology will prove to be a manageable and scalable investment area for brands across industries. It is already disrupting traditional digital marketing models and is capable of further enhancing transparency to create more frictionless experiences.
The relationship between businesses and consumers is being redefined, as trust – typically surrendered through intermediary interference – is strengthened and data is made more secure under the customer’s control.
This level of visibility is empowering users to engage with companies, and grants them access to their information, ultimately reinventing the dynamic of customer relationships.
16 March 2021
More in Technology & data
Social media & COVID-19: digital crisis interaction among Gen Z and Millennials
A global study by Wunderman Thompson, The University of Melbourne and Pollfish, in collaboration with the World Health Organisation
Five steps to digitise your data capture
Wunderman Thompson’s five-stage approach to frictionless customer data capture to boost business, drive efficiencies and keep your customers happy
How to jump-start customer engagement with zero-party data
As cookies fall under greater scrutiny, the importance of zero-party data (and first-party data) will only grow