Ways Retailers can benefit from Blockchain Technology
There is no doubt that blockchain is a revolutionary technology. In a short span of time, it has not only given a rise to the single currency (bitcoin) but also to the entire financial market.
The debates will go on for years about the value of Bitcoin, but for now, the whole of tech community seems to be appreciating the functionality and use cases of blockchain technology.
Although the technology favors more of the financial applications, it is now extending its support to numerous non-financial sectors. One such sector is retail, where it is proving to be groundbreaking.
A recent market study shows that by 2020, blockchain could get the adoption and by 2025 it would be generally accepted from consumers all over the globe. Another research shows that technology can enhance the efficiency of processes from 40 to 60%.
These numbers and the amount of research put into this technology only goes to show the range of endless possibilities it has and how it can be the next big industry.
Blockchain technology is starting to seek people’s attention, acquiring far more potential than bitcoin.
Here are a few questions that every retailer should answer before implementing the blockchain technology into the business:
- Where and how I need to use the data in my business? Who controls the data and what are the risks I should undertake in its storage and utilization?
- What are my highest leverage business issues that I could benefit from trust, transparency and the collaboration between the stakeholders?
- What are all the internal capabilities to try and execute these upcoming technologies? If I find this to be insufficient, what will be my plan to bring in additional expertise?
Tracking the origin
On top of the list is for customers to know the provenance of the product. Imagine if the grocery store is specialized in giving the organic food products and delivers the way the customer wants it to be. But the organic labels are just used as a marketing tool in order to charge a high price for each of the products.
And here is when blockchain technology can come in for some use, providing ways and various methods to track the journey of the product- from an organic farm to the store.
This thereby builds confidence among the customers in their products to a larger extent.
Also Read: Smart Contracts in Blockchain
Consumer and Advertising Data
Often consumers complain about the exploitation of their personal data and the regulators are now striking hard with questions about the data security.
Retailers who collect and retain the customers’ data are advancing to this technology as the openness and transparent blockchain will have a constructive impact not only on the operations but also on public relations too.
Controlling fake products
The distribution of fake products is getting out of hands and is almost hard to identify and control the true product. In the cases of luxury products, the effects are dangerous, thereby leading to deterioration in the value of the products. The blockchain technology can help solve the problem by allowing customers to scan a code that is induced on the product, enabling them to see the history of the product.
The history of the product will allow the customer to see the chain of ownership – the country of origin, every point during the lifespan of the product as it moves through the supply chain.
Automated Customer Service
Blockchain allows the use of smart contracts which includes a set of instructions that are automatically performed only if the conditions are met. With the help of this, one can address for consumer claims and settle conflicts without requiring documents or even court proceedings, for frivolous matters.
The digital documents are stored in a digital ledger with the smart contract; the customers will no more be required to search for receipts, insurance papers, warranty documents etc. Thus, we can expect more of blockchain powered automated customer service.
Blockchain can decentralize any centralized service that exists with the intention of establishing trust. Although, there is a long-term possibility we can only say that it is certainly possible anytime in the future.
Albeit, the blockchain technology is a debatable topic. Many people still question the technology and hesitate to include it as part of the mainstream of business operation.
Do you have a few ways that a retailer can benefit from the blockchain technology? Then write to us in the comments section and let us know about the distinct benefits of it.