The technology behind cryptocurrencies like Bitcoin and Etherium may not be a household name just yet but it has been gaining traction fast and although the future of the said cryptocurrencies may still be up in the air, the Blockchain itself is bound to stick around for the long haul. It has opened up a world of possibilities and can potentially revolutionize the way existing technologies and business processes function. With that in mind, we will focus on how blockchain is likely to affect Customer Relationship Management down the road.
What is Blockchain?
On the off chance you’ve not hopped onto the Bitcoin bandwagon and are totally unfamiliar with Blockchain, let us help you figure it out. Simply put, a block chain is an ever-growing list of interlinked records or ‘blocks’. These blocks are cryptographically secure and resistant to any external tampering. A blockchain functions as an open, decentralized ledger that effectively keeps track of transaction between two parties in a permanent and verifiable way.
How Blockchain will change CRM
With the basics out of the way, I think we are in a slightly better position to discuss how Blockchain can potentially alter CRM in the years to come. Here are five areas that are likely to benefit the most from this technology:
1. Enhanced security
A blockchain is literally a chain of blocks, where each block contains transactional records. Each block is connected to blocks before and after it and is cryptographically secured such that participating users are assigned network keys in order to restrict unauthorized access.
Additionally most CRM databases are presently hosted on cloud servers. Although cloud security protocols have come a long ways, Cloud security concerns are not completely unfounded. These are mainly centralized systems and thus, have an inherent single point of failure. Comparatively, blockchains are decentralized and distributed across regularly synchronized peer-to-peer networks. This makes tampering nearly impossible as it would require massive computing power to access the entire blockchain. Consequently, chances of fraud and repudiation are also eliminated.
2. Better Transparency
Since it is decentralized, Blockchain can allow your company to securely and transparently deal with your customers without the need for a financial institution such as a bank or a third party broker to facilitate this. The elimination of these ‘middlemen’ will also bring about greater efficiency and speed in all your dealings.
3. Improved User Privacy Control
With concerns about personal data security on the rise, CRM systems will have to address them by adjusting how they handle customer data. Owing to its decentralized and secure nature, blockchain gives way to the idea of a self-sovereign identity. It can store and encrypt personal information and verify this upon inquiry without actually sharing any specifics with the concerned parties, granting users greater control over their identity.
4. Data Cleansing
Whether it’s due to inept data import tools or human negligence, CRM users all over the world have to deal with inaccurate or duplicate data at some level. With blockchain in place, a customer can have their very own personal block that presents companies with a unified and accurate picture of their personal information, past transactions, subscriptions, etc. Hence, blockchain helps these companies circumvent the issue of inaccurate, obsolete and duplicate data 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, 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.
The Bottom Line!
Blockchain will not only change how we approach CRM but has the potential to fundamentally revamp business operating models in general. With the technology still in its preliminary phase, this seems like a bold claim to make. However keeping in the view all that it’s capable of, we believe it is a justifiable one.
Rolustech is a SugarCRM Certified Developer & Partner Firm. We have helped more than 500 firms with various SugarCRM integrations and customizations. Contact us today for your FREE consultation session. We will be happy to assist you.