The video game retailer CEX recently suffered a blow to their public perception when approximately two million customers had their personal information compromised in a massive security break. The damage was relevant for online customers who had data including their names, addresses, phone number, e-mail addresses, and credit card information stolen /1/. The security breach speaks to the lingering worries of online shoppers regarding their safety of their personal information in a digital age.
Customer trust critical to retail success
In addition to the challenge of storing customer data responsibly, online retailers are confronted with problems storing the data on the products they are selling and ensuring that customers trust the products they buy. The success of an online retailer depends heavily on their ability to incite confidence in the customer regarding their products and the process of purchasing them.
66% of online shoppers are reported to worry about data protection when shopping online /2/, and the recent CEX incident proves their worries legitimate. Online retailers ought to be looking for data storage options to improve transparency and legitimize customer trust.
Blockchain could heighten trust
Implementing Blockchain technology in their IT structures could provide tremendous advantages to online retailers in a number of ways. The storage of customer data in a Blockchain makes such security breaches nearly impossible – Blockchain uses a very elaborate encryption procedure and distributes many copies of the data throughout the overall database.
An unauthorized party would need to change 51% of all instances in order to successfully change one entry. An unchangeable record of transactions would result in heightened security and trust for customers.
Further benefits for retail supply chain transparency
Online retailers could also benefit from implementing Blockchain in their supply chains to trace the history and origins of products, and make that information available to customers. A seamless record of a product’s manufacturing and delivery process is made possible when changes in status are saved as transactions in the Blockchain. Customers could then feasibly scan QR codes on their products and see the complete history, further boosting trust and customer satisfaction.
To learn more about Blockchain and further use cases, you can get in touch with our experts.