The online global ecosystem is saturated with noise, making customer retention and acquisition more difficult than ever for retailers and businesses. Despite its own noise, blockchain technology can be a divisive tool for merchants to utilize to acquire new customers, establish repeat customers and build their brand through proactive engagement marketing.
The current business landscape is rapidly changing by the growth of e-commerce and online stores offering convenience and one-click purchases, leaving brick-and-mortar businesses with empty stores. Consumers are beginning to ingest all of their media online, and where word of mouth from friends and family used to be the golden rule for purchase recommendations, Yelp is now king.
Studies have shown that nearly 90% of consumers refer to an online review before making a purchase, and the majority are deterred by a single negative review. In fact, most customers won’t buy from companies with a negative review, and merchants are feeling the pressure. However, the true problem lies in the matter that more than half of some major retailers’ reviews are false. As merchants look for new ways to attract and retain customers, a pristine digital presence is essential and one negative review could result in the loss of profits.
Blockchain technology has the power to change the infrastructure of the online review system to benefit both merchants and consumers. The online review system has long lacked transparency, making reviews easily susceptible to corruption, and the system is overdue for an overhaul. TEE-Coin is an example of one company transforming the review system. The company has designed an ecosystem built on blockchain technology to facilitate authentic customer reviews for merchants, while providing incentives for customers. The platform ensures that the customers who actually purchase products or services through their ChatTee app are the ones leaving reviews.
As the retail landscape continues to evolve, merchants are looking for technology solutions to remain relevant and profitable, and authentic reviews are only one piece of the equation. Merchants are faced with the challenge of finding new ways to retain customers and tap into new opportunities. It costs five times as much to acquire a new customer than it does to maintain an existing customer, highlighting a drastic need for change. The concept of incentivizing reviews to leverage blockchain technology has the potential to immediately begin combating the common issues associated with both illegitimate and negative reviews. Most consumers are more likely to post a negative review than a positive, but a reward system will drive more users with pleasant experiences to share.
Speed, security and transparency are some of the key features blockchain technology brings to the marketplace, and both merchants and consumers will start demanding all of these sooner rather than later.
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