Companies who have deployed blockchain technology to optimize their business operations could have a distinct advantage over those reliant on traditional systems and processes, given that increased adoption of blockchain technology is starting to appear across a range of industries. In particular, companies that have begun to explore the impact of blockchain on AB testing and customer relationship management (CRM) can gain advantages over their competitors by offering the security and data privacy options that customers value more and more today.
Blockchain and AB Testing
AB testing is the practice of comparing two versions of a webpage or a broader campaign that ostensibly offer the same product, but present that product via two versions using the same method. This is also known as split testing and allows a company to determine which technique is more effective before unleashing its product or campaign to its clientele. AB testing allows companies to explore different ways of increasing web traffic and click-throughs, so that businesses can be confident they have opted for the tactic that will generate the most profitable long-term outcome.
There are many variables in play during AB testing, from the hiring of designers and marketers, to establishing the infrastructure required to complete the test. In an interesting interview with Small Business Trends on the wider theme of blockchain in business, Jeremy Epstein cites a salient example of how blockchain can improve the practice of AB testing.
Epstein refers to a test commissioned by Toyota for a campaign on the topic of test drives, where Team A approached the task of delivering advertisements with the usual strategies. Team B cooperated with a company that specializes in blockchain tech to streamline the backend processes, producing an overall improvement of 21% in business outcomes. This type of improvement is likely to encourage more businesses to opt for blockchain-driven approaches in AB testing and, based on this example, more companies may find that using blockchain ultimately increases efficiency and revenue streams.
Decentralization of Data
The decentralization of data is a non-negotiable aspect of blockchain, and for many users it is one of the biggest advantages of the technology. This may not be conducive to traditional CRM methods, given that CRM is currently focused on the acquisition and analysis of data in order to optimize consumer engagement. With decentralized data, companies must shift the way they analyze information. There is no longer one large treasure trove of private customer information for the CRM team of businesses to evaluate. That’s not necessarily bad for business; however it requires companies to re-think their approach with their clients.
Decentralized data systems ensure that the consumer has complete control over their private information, giving them free reign to decide when they want to exchange their details to access a service, and when they want to eradicate their info from a company’s database. This will force industries to adapt their approach to data analysis and where they derive value. Rather than analyzing the minutiae of consumer engagement, companies will be forced to observe wider trends and devise new strategies to connect with clients; for example, perhaps the removal of a particular service results in the increase of customers reclaiming their data.
While decentralized data may make it harder for companies to pursue their existing CRM strategies, the benefits blockchain provides may be integral to driving more customers to the business in the first place. By increasing transparency and security, blockchain could eliminate the major concerns in the CRM sector. Any business that requires the transaction of funds or the transfer of sensitive data may be able to offer new features for consumers via blockchain technology, which results in higher customer satisfaction, better retention rates, and higher profits.
In other industries, blockchain could allow the legal industry to store and authenticate key documents in a more transparent manner for the client. The availability of blockchain tech could make a difference when looking at the most popular casinos, with sites that allow users to verify their identity via information stored on a blockchain which is more secure for players. The use of smart contracts in blockchain could also streamline the real estate business, reducing the need for middlemen and ensuring funds are only transferred once certain conditions are specified.
Improving Customer Retention
While the security and transparency advantages of blockchain may be effective at attracting new customers, industries will still require the implementation of new strategies to ensure that client retention stays high. As stated beforehand, decentralized data networks will shift the way businesses handle their CRM. However, there are existing methods that will slot seamlessly alongside the new tech and, in some ways, be improved by the presence of blockchain.
One example is the use of offers and bonuses. Customers may be rewarded for their loyalty to a company with the award of bonus funds, free product samples, and a discount for their next purchase from a brand. Selecting the tried-and-tested strategies for retaining customers alongside blockchain adoption could allow companies to optimize these offers for an even more effective CRM.
Blockchain takes processes that require human intervention and completes them automatically, removing the need for companies to hire third parties to facilitate the transfer of funds. Leveraging blockchain could help the company to identify fraudulent activity, such as customers collecting forex welcome bonuses in ESMA-regulated countries where this is not allowed.
The integration of blockchain in AB testing and CRM is still in its relative infancy, but the next few years promise to be pivotal. As businesses find that blockchain allows them to streamline processes, reduce running costs, and give more back to consumers, there is likely to be a snowball effect of blockchain adoption across multiple industries.
Meow Corp is a lead generation company based on Malta that mainly focuses on iGaming, Crypto and Finance sector.