Introduction
Given that blockchain has been making waves across different sectors, it actually makes sense to see institutions like Grand View Research expecting its market size to increase by a CAGR of close to 90.1% in the next few years. Such a trend, of course, begs questions like whether the CRM sector is ready for this revolution, and thankfully, this article will address just that. While customer relationship management has long been the backbone of businesses, it has not been without challenges, which provides good grounds for the adoption of technologies like blockchain.
For example, as blockchain adoption grows, digital assets like Solana are gaining traction in decentralized applications. Businesses considering blockchain-based CRM solutions may look at how blockchain networks, such as Solana, handle transactions and security. Tracking Solana price USD fluctuations highlights the increasing mainstream interest in decentralized technologies, meaning that blockchain could be a valuable addition to CRM systems. This could result in more reliable financial interactions between businesses and consumers, ultimately improving trust in digital transactions.
The increasing need for security and privacy
It’s actually true that CRM can really benefit a business. In fact, studies show that businesses using it can exceed sales goals by up to 86% than those that don’t. But these benefits do not come minus their share of challenges. Can you imagine that, according to BIGContacts, there were over 2.8 billion malware attacks targeting CRM systems within the first half of 2022 alone?
Companies use these systems to store massive amounts of customer data, making them a prime target of cybercriminals. The unfortunate thing with such events is the associated financial losses alongside their negative effects on brand image. A recent study by IBM revealed that you could spend up to $4.88 million recovering from them.
It gets even worse when it comes to customer trust because a significant percentage may never transact with you again after a security breach. Remember, everyone is becoming more conscious of their online safety and wouldn’t want to interact in an environment that might expose them. Thankfully, blockchain is decentralized and immutable by nature to ensure businesses can get ahead of some of these challenges.
Just that traditional CRMs store data in centralized servers, the likelihood of single-point failure issues is very high. Blockchain overcomes this challenge by distributing data across a network of nodes, making it nearly impossible for single-entity attacks to compromise the entire system. On top of that, this technology uses advanced cryptographic encryption that keeps customer data more secure from unauthorized access. And do you know what? Given that GDPR and other privacy regulations are tightening, maybe blockchain could help businesses comply with these changing laws.
Building customer trust with transparency
Are you aware that, according to Statista, close to six in ten customers believe trust and transparency are the most important traits of a brand? At a time when it takes a lot of resources to stand out, you don’t want to ignore such statistics. Unfortunately, many customers have not ceased complaining about receiving spammy emails after subscribing to a service. And this is one of the biggest challenges of traditional CRM systems.
So, how can blockchain help with this? You may ask. Well, this technology allows customer interactions and transactions to be recorded on a transparent ledge through its tamper-proof system, denying businesses the opportunity to manipulate or alter records.
Think of it this way: all actions are recorded on the chain so that, if a customer raises a complaint, the blockchain-powered CRM can offer a verifiable history of transactions. This helps build more trustworthy relationships and demonstrates businesses’ commitment to ethical practices. Plus, at a time when fake reviews are becoming a norm, blockchain-based CRM systems can help ensure that only real customers leave feedback.
The power of smart contracts
Have you ever encountered a brand with loyalty programs that you couldn’t use across multiple platforms? Most likely, you didn’t love the experience. But now that we are in a time when customers have become multiscreen consumers, the need for seamless access across multiple channels is very apparent.
Using smart contracts, blockchain can help unify loyalty rewards across multiple businesses and allow customers to redeem points more flexibly. On top of that, this technology can help automate different processes like subscriptions. For example, when a customer renews their subscription, a smart contract could instantly verify the payment, update the CRM database and trigger a thank-you email—all without manual input.
So, is CRM ready for blockchain?
Well, given these benefits, no one would want to operate without blockchain technology. But that does not come without its own challenges. By the way, do you know that, according to Appinventiv, you might need anywhere between $30,000 and $300,000 to build proper blockchain software? This is already a very capital-intensive investment, especially for small businesses.
However, that said, long-term benefits like better security and increased customer trust make blockchain an exciting frontier for CRM. Good enough, there are companies like Salesforce that have already begun exploring this journey, which could imply that the industry is gradually opening up to this technology.
If this trend continues, we may just walk into a future that combines blockchain and traditional CRM. Of course, for businesses that are always seeking innovative competitive advantages, staying on the lookout for such advancements can really help.
