Many businesses take the modern approach of enhancing their businesses using technology which is a great idea to widen opportunities to attract customers. However, despite the modern take of businesses today, there is a huge impact on the customer’s end and it mainly involves the security of their personal data which has been proven easily exploited over the years. Customers today are well aware of the value of their personal data in this digitalised society we live in today.
The rise in awareness of the value of personal data doesn’t seem to be dying down. Modern businesses that sell products on offer for an exchange of personal data have been faced with the issue of reduction in customers as they, the customers are to make a conscious choice of whether it is worth it to trade in data for products. To which it isn’t the case most of the time.
Breaches that are on the rise and reported on a regular basis have been the driving factor of consumers away from entities that trade product for data in return. This is where the trusts or loyalty of customers plays an important role in ensuring the breakeven or increase in revenue over time. This has made businesses differentiating themselves through the trust given by their clients or customers and clearly in order to gain that, is to resolve the issue of building maximum security to ensure data installed are safe in order to gain trust. What better way to do that than with blockchain technology?
It is believed that the rise in blockchain would automatically cause a turn in tokenization and is in fact believed to be the reason for a huge transformation in commerce. Firms have encountered findings that 63 percent see tokens as an easy payment method and 55 percent deem tokens to be a better tool for loyalty-based rewards.
The benefits following the growth and adaptation of tokenization come to both ways. On the consumer’s side, they do not need to provide personal data in the midst of interacting whereas businesses are able to gain the same amount of benefits and increasing customer’s loyalty. This will definitely be a bonus for the business entities as it could possibly be the cause of higher generating revenue.
Blockchain applications in the tokenization process add liquidity by using its tokens hence resulting in an accelerated transfer of value as KPMG mentioned. Blockchain is predicted to be of an important front in the tokenization built up for consumer-related businesses. This becomes a much needed tech for entities that have a high degree of customer’s loyalty.
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Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.
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