Blockchain can provide an enormous amount of opportunities for the retail industries.
FREMONT, CA: Retail sector is booming even last year before the COVID-19 hit the world. Although several retail companies provide online purchasing facilities, the primary revenue comes from their brick-and-mortar stores. However, after the pandemic came, retailers faced significant issues like maintaining the supply chain, selling products, opening stores, and keeping all the employees and customers safe. Blockchain’s reliability, sustainability, and quality of tracking and support in management operations can provide retail industries the ultimate optimization they need. Here is how.
Increasing Customer Loyalty
Using blockchain technology provides instant data integrity. It is largely applied to customer loyalty schemes. The blockchain ensures data capture at every stage of customer interaction. This will help better qualitative analysis and customer modeling potentials. Retailers can use blockchain for customer loyalty programs. They offer consumers the choice to store ubiquitous loyalty points with a single wallet rather than accumulate them in isolated membership schemes.
Supply Chain Transparency
Supply chain management is the flow of products and services and includes processes from sourcing raw materials until conversion into finished products. Blockchain can be leveraged to remediate the issues such as recordkeeping and product tracking. It is certainly an alternative to the centralized database. The use of blockchain adds trust to the brand-customer relationship. Digital recording of the supply chain operation ensures authenticity and mitigates the risk of counterfeiting.
Improving Customer Privacy
Customers are exchanging personal data to the company. The company stores this data in its database. This data is put at high risk and is highly prone to system breaches, hacks, and data losses. This will impact brand perception and consumer loyalty. This data can be securely housed in a blockchain as it is decentralized which cannot be hacked. Consumers can even manage the level of information they need to share with retailers. This way, the consumers are aware of who requires their data and the purpose for which they want it.