The blockchain has the power to transform customer service. It provides security and the ability to perform quick transactions. We discuss its usefulness using examples from business and everyday services such as the lotto in the article below.
The blockchain is mostly associated with cryptocurrencies and their financial worth. Yet this overshadows its true potential. It has the ability to transform how many administrative tasks and business processes are performed, increasing speed and security. Customer service and communication are two areas that could benefit from blockchain incorporation. We discuss them in the article below.
Why Blockchain Technology?
The blockchain is essentially a digital ledger. As it is decentralized, no one owns it. Each block on this chain will record information about transactions, that cannot be altered or changed.
As no single entity owns the nodes on the blockchain, it makes it extremely transparent. It also improves security, one of the main advantages. Data recorded on it is immutable, meaning it can not be changed. By locking it in using cryptography, data is stored forever, essentially marking it in digital stone, making a lasting record. Finally, everyone can see these records. That makes the chance of fraud and manipulation much less, as it is all out in the open.
What Are the Benefits of Customer Service?
The benefits to customer service from a blockchain are plentiful. Firstly, information is transparent and easy to trace, which makes it much easier to see where a query is in the relationship management process. It also opens up certain business practices to public scrutiny, all of which can improve trust and accountability. For example, where products are sourced from could be one piece of information stored on the blockchain for all to see.
As information stored on the blockchain is immutable, it seriously reduces the risk of fraud. Data breaches, identity theft and payment fraud can all be seriously reduced in this way. Finally, it is able to execute commands using automation. This utilises smart contracts. When a certain number of criteria are met, a process automatically begins.
Real World Applications
Some of the most practical and simple applications are the most useful and can save people a lot of unknowing trouble. Take the example of the Australian Lottery winner, who last year was reported to have won a $1 million prize. This player never came forward to claim it and most probably didn’t realise they even had a winning ticket. Under Australian lotto rules, players have one year to apply for winnings before they lose the chance, and that has expired. This is also important, as there are different expiration dates across the various territories. So how could the blockchain have helped?
If blockchain had been applied to these events, then there would be a lasting record of the transaction. Unless the Government Regulator compels the lotto company to place a time limit, tickets could remain open for an indefinite amount of time. With the recorded transaction, even if the physical ticket had been lost, there would have been a digital record.
Finally, the process of verifying the identity of the recipient would have been much quicker. With numbers and personal data recorded on a blockchain, once these numbers were selected it would have automatically set the smart contract into action. Funds could have been released to the recipient almost instantaneously.
Ways to Implement Blockchain Technology
Of course, you don’t need a full overhaul of all services to use blockchain technology. Below are a few ways you can use it to enhance customer service and the customer experience.
Feedback – Decentralized feedback systems are a way in which customer service reports can be written directly onto the blockchain. While this may not help you, an approach to this across industries would eliminate the ability to leave fake reviews and improve feedback for customers.
Supply Chains and Logistics – With this, a customer can track a product throughout its whole journey. This may start at where the goods are made and sourced, all the way to last-mile delivery. With this accountability, it can eliminate counterfeit goods and improve accuracy about when products will arrive.
Smart Contracts – Smart contracts will execute whenever a range of predetermined criteria are met. Some countries, such as Nigeria, are already implementing these systems to combat fraud and reduce administrative backlogs. A great example is a mortgage chain. Instead of one person, like a bank, passing more information onto the next, such as the lawyer, sections can be signed off instantly as criteria are fulfilled.
While these are the visible applications, there will be many not yet realised. The blockchain is a new technology, yet to fulfil its potential. If you want to be at the cutting edge of customer service, look out for innovations and see who is using them. Before long, you could have brought your customer service into the future.
