Blockchain is a secure, decentralized data organization system that allows businesses to fuel consumer loyalty, increase transparency, and enable machine learning on a scale not yet even dreamed of.
Most people have heard of blockchain in conjunction with cryptocurrencies such as Bitcoin or smart contracts like Ethereum. While these applications demonstrate blockchain’s disruptive power, its decentralized, trustless technology has the power to do so much more for businesses and brands everywhere .
So what is blockchain? At its foundation, a blockchain is a data filing system. It stores data in an encrypted, decentralized ledger. Because the data is both encrypted and spread across different sources, it fosters the creation of secure, nuanced databases. Any type of data can be recorded securely using this decentralized system and no one can hack into the blockchain to change its records.
Why should your business care? Here are 5 reasons blockchain can help grow your brand:
1. Blockchain helps give consumers the transparency they demand
These days, if you want to build a loyal customer base, you need a transparent business. In a survey of more than 2,000 customers, 94% said they were much more likely to be loyal to brands that are completely transparent. It not only helps to attract new customers, but helps retain existing ones by fortifying trust.
Transparency is within the very DNA of blockchain technology. Its implementation allows all parties (supplier, manufacturer, retailer, and end-user) to trace a product’s path. Whether it is a personal record, consumer good, or currency exchange, each item can be easily and clearly tracked. This creates a new level of consumer trust in the products that they are buying and with the businesses where they transact.
As consumers continue to demand more and more transparency from products and businesses, blockchain will become an essential technology.
2. Blockchain helps reduce your supply chain latency
Blockchain, together with advances in AI, creates more transparent, collaborative, and efficient supply chains that are responsive, less error-prone, and are always self-improving.
Since a blockchain is a fixed ledger, changes in possession of consumer goods from producer to end-user are entered into it instantaneously and permanently. Knowing in real-time the exact location of all inventory helps reduce stock outages, improves delivery times, and reduces waste supply chain costs, particularly those dealing in CPGs or luxury goods.
As supply chain complexity increases, expect to see and hear more about how blockchain can make the entire process more efficient.
3. Blockchain fuels consumer loyalty through more compelling rewards programs
Many loyalty programs today create frustration and exasperation for consumers rather than improved usability and brand loyalty. Blockchain has the potential to overhaul the tracking and management of loyalty points, rewards cards, and coupons.
Each brand creates and manages their loyalty program independently, causing consumers to self manage their rewards and points. Blockchain can unify the overly complicated loyalty rewards space, making reward points more valuable to the end-user. For businesses, adopting blockchain to manage their loyalty programs will expand partnerships and brand awareness without adding complexity. For consumers who have to juggle a confusing assortment of loyalty programs, blockchain provides instant redemption for loyalty programs on a single platform.
4. Blockchain super charges consumer data and advertising ROI
Consumer data helps companies make informed advertising decisions that lower their bottom line. Current advertising models result in a lot of waste and imperfect attempts to attract and retain new customers. Blockchain can produce accurate, real-time data about the content people consume, the ads they receive, and how they move across platforms.
The ability to better understand consumers uniquely enables businesses to reduce shot gun approaches to advertising, target the right consumers, and create fewer, but more effective ads. The best part of all: it does this without any personally identifiable information being shared, or expensive contracts with media giants.
5. Blockchain skyrockets AI
Your company’s AI algorithms benefit from blockchain’s decentralized, standardized data. Why? Because introducing secure data sharing means introducing more high quality data, better models and, eventually, better recommendations to fuel the cycle of machine learning again.
With data decentralization, companies of all sizes have access to high quality, integrated data that would not be accessible via isolated data stores. The best companies only use 3% of their internal data to drive algorithms and recommendations. Imagine how much smarter your company can be if it combines internal data with easily accessible shared data.
Liquid Analytics is always interested in partnering with organizations who are seeking to push the envelope with technologies like Blockchain. Contact us to talk about what we could create together.
Lyn Nguyen is the CEO of Liquid Analytics. She leverages machine learning and design thinking to drive innovative change for enterprise clients. Connect with her on LinkedIn.