Positive customer relationships define successful businesses, and customer relationship management (CRM) tools help to connect with customers and engaging with the market is less complex. However, conventional systems often face challenges in ensuring transparency, security, and efficiency in CRM interactions because of interconnectivity and data reliability issues, which is where blockchain can step in to help.
Here’s an infographic showing how blockchain CRM can transform and fortify customer success.
6 benefits of blockchain in CRM
Introducing blockchain technology into CRM boosts existing customer engagement strategies and brings a new era of innovation and efficiency. Blockchain CRM improves your organisation’s customer interactions and satisfaction, giving your clients the best experience. Below are the advantages of using blockchain for your CRM needs.
1. Data security and privacy
Blockchain technology offers unparalleled security measures. It safeguards customer data from breaches and unauthorised access with decentralised data storage and cryptographic techniques, such as hashing and encryption. Leveraging blockchain technology for CRM ensures the integrity and confidentiality of sensitive information.
This enhanced security protects your enterprise from cyber threats and instills customer confidence, leading to stronger relationships and increased trust in your company.
2. Trustworthy customer profiles
Blockchain CRM is immutable, making the authentication process of customer information easier and sturdier. Since transparency and tamper-proofing are core features of blockchain, the technology is valuable for businesses to ensure the accuracy and reliability of customer data.
Besides reducing the risk of identity theft and fraud, blockchain enables better personalisation and meaningful engagements based on verified information. In effect, you can foster credibility in online transactions and improve customer satisfaction and loyalty.
3. Smart contracts
Smart contracts are self-executing agreements that automate processes and transactions without the need for intermediaries. With blockchain, you can implement smart contracts and automate various CRM processes, including contract management and customer onboarding.
For instance, you can use smart contracts to automate the verification process by checking customer data against predefined criteria on the blockchain. Automation lessens the need for manual intervention, ultimately streamlining operations and reducing administrative overhead.
4. Loyalty programs and rewards
Apart from customer onboarding, blockchain CRM and smart contracts are beneficial when creating loyalty programs. Utilising smart contracts on blockchain networks lets you offer customers transparent and traceable rewards distribution. Take Tokenized as an example.
The tokenisation solution company uses smart contracts to enable seamless redemption and secure transferability of loyalty points across platforms and partners. This interoperability enhances the value of loyalty rewards while providing customers with greater flexibility and control that can effectively drive up repeat purchases.
5. Enhanced customer engagement
Blockchain CRM also enables microtransactions that incentivise customer engagement with your company events or announcements. A perfect example of this is the platform Centbee. It leverages blockchain to reward customers with BSV blockchain microtransactions each time they engage with something in the app, like changing profile pictures or encouraging friends to use the platform.
Offering tangible incentives for engagement allows you to foster a community of loyal customers who are actively participating in brand activities and promotions. As a result, you can increase brand awareness and customer retention.
6. Supply chain transparency
Blockchain’s unparalleled transparency is valuable for supply chains. Transparency can combat fraud and ensure product authenticity. Solutions like Manufact utilise blockchain to trace the journey of goods from inception to delivery, recording each step on an immutable ledger.
With this, you can utilise blockchain to reduce the risk of counterfeit products and unauthorised tampering. Consumers can also make informed decisions based on reliable information on the product’s origin and quality. Ultimately, supply chain transparency can enhance brand reputation and consumer confidence.
10 steps to integrate blockchain in CRM
Implementing blockchain technology for your CRM efforts requires careful planning and execution. Here’s a comprehensive guide on how you can integrate blockchain for businesses and transform your CRM strategy for customer success.
1. Understand blockchain technology
Before anything else, learn how blockchain technology works and its applications in CRM. Familiarise yourself with the fundamental concepts such as decentralisation, immutability and consensus mechanisms to grasp the potential benefits and limitations of blockchain for CRM. With this, you can maximise blockchain CRM to enhance the customer experience.
2. Identify and study use cases
Look for various use cases where blockchain can add value to your CRM processes. Analyse industry-specific challenges and pain points to identify areas that blockchain can solve. For example, you can check how blockchain helps with data security and inefficient transactions, which can eliminate customer trust issues.
3. Choose the right blockchain platform for your CRM
Once you know what areas need improvement, evaluate different blockchain platforms based on factors like scalability, security, interoperability and community support. Then, select a platform that aligns with your business requirements and long-term goals, whether it’s a public blockchain or a private one.
4. Develop smart contracts
Leverage smart contracts to automate and streamline CRM processes. On top of contract management, you can use them for customer onboarding and loyalty programs. Work with blockchain developers to design and deploy smart contracts that reflect your workflow and policies for transaction efficiency and transparency.
5. Ensure data consistency
Data standards and protocols promote consistency and integrity across decentralised databases. Meanwhile, data synchronisation mechanisms reconcile discrepancies and maintain a single source of truth for customer information and interactions. These components give you accurate customer data for creating personalised interactions and offers.
Having a blockchain CRM also lets you build a pool of authentic customer profiles, which lessens and eventually eliminates the space for fake accounts and fraudulent transactions.
6. Enhance security and privacy
Protecting sensitive customer data and transactions on the blockchain involves encryption techniques, access controls and multi-factor authentication. These practices safeguard against cyber threats and unauthorised access to customer accounts. You should also prioritise user privacy and adhere to data protection regulations such as GDPR and CCPA.
7. Educate staff and stakeholders
Provide comprehensive training and education to your employees and stakeholders on blockchain technology and its implications for CRM. Cross-functional teams could experiment with blockchain solutions to streamline CRM processes and foster a culture of innovation and collaboration. Then, consider training them about the best blockchain customer relationship management practices.
8. Compliance and regulations
Stay on top of regulatory requirements and compliance standards governing blockchain adoption in your industry. Collaborate with legal experts and compliance officers about your blockchain initiatives to ensure they comply with relevant laws and regulations and mitigate the risks of legal issues and penalties.
9. Monitor and evaluate
Continuously track and assess the performance of your blockchain-powered CRM systems. Monitor key metrics such as transaction volume, processing speed and user satisfaction to determine the effectiveness and return-of-investment (ROI) of your blockchain initiatives. Also, identify areas for improvement and optimisation to drive continuous innovation and growth.
10. Scale gradually
When implementing blockchain CRM, it’s best to start small and scale gradually as you gain experience and confidence in this technology. Consider implementing polar projects to test scale-up feasibility before expanding to larger deployments. Collaborate with industry partners and ecosystem stakeholders to leverage collective expertise and resources in scaling blockchain-enabled CRM solutions.
Note: If you need expert assistance, contact a blockchain service provider to learn more about the technology and help you choose and implement it. See BSV Blockchain Vendor’s directory here: https://www.bsvblockchain.org/vendors
Advancing CRM practices with blockchain innovation
Integrating blockchain technology into CRM can unlock several benefits, from enhanced data security to improved customer engagement. However, you need a comprehensive plan and careful execution when implementing blockchain CRM.
Check out our blockchain eBooks to understand how BSV blockchain’s robust infrastructure and capabilities can complement your CRM goals. BSV Blockchain also has an extensive library of articles where you can learn more about blockchain.
