The Customer Satisfaction on the blockchain
What is Sandblock?
Sandblock leverages cutting edge blockchain technologies to reward customers for their engagement and loyalty using cryptocurrencies.
-Sandblock’s goal is to balance and redefine the relationship between businesses and their customers by building a decentralised protocol to define, measure and improve customer satisfaction in order to benefit both sides.
-Sandblock’s protocol implementation aims at motivating widespread crypto payments adoption by building a trustable decentralized system which rewards customers fortheir engagement and loyalty.
Customer satisfaction is a marketing term which measures how products and services provided by a business meet its customers’ expectations. While working on customer satisfaction can help one feel good as a result of working towards maximizing the positive outcomes of a customer’s experience, it is also an excellent way to ensure business profitability. A study conducted at Harvard by the professors J. Heskett, W. E. Sasser Jr. and L. Schlesinger shows that while a satisfied customer is relatively loyal to a brand, a very satisfied customer becomes truly loyal to the brand.
Process of customer satisfaction
This cognitive theory explains post-purchase or post-adoption satisfaction as a function of expectations, perceived performance and disconfirmation of beliefs.
As we can see in this model, the goal for a business or merchant to be successful at satisfying his customer is to design a good experience, While designing a decent enough experience for customers is something quite easy to do, implementing it and scaling it is the challenge. the flaws in an implementation is even harder because the most of the tools required to do this analysis are expensive and customers will tend not to give merchants obvious answers to the questions they ask to understand what went wrong during the whole experience.
Satisfaction measurements AND Customer loyalty
The Customer Satisfaction Score, or CSAT, basically provides the overall level of satisfaction experienced by customers. It is the most simple metric to grasp the essence of a business’s success.
The Net Promoter Score, or NPS, is one of the tools to measure customer experience and predict business growth. NPS has been defined by Fred Reichheld at management consultancy Bain & Company who deemed customer satisfaction surveys tiresome and inefficient.
This question is usually followed by a 0–10 scale. NPS allows to understand loyalty metrics and measure and track the state of the customer relationship. This tool is globally used by two third of the Fortune 1000 companies. The Customer Effort Score (CES) is a fairly new customer satisfaction metric which appeared forthe first time in an article from the Harvard Business Review.
Customer loyalty with many brands is simultaneously slipping, the active engagement in those loyalty programs is falling with the percentage of loyalty members not using the programs for which they are signed up. . In addition, social media lets customers know exactly what their friends are buying and what they like and don’t like about those purchases. This study shows that not only loyalty programs are important and must be tied closely to customer satisfaction in order to get the most of it.
One could be satisfied by this number but the reality is that locking customers within a loyalty program harms the customer satisfaction and moreoverthe reputation of the brand. This is often done through loyalty program coalitions but those coalitions tend to be quite exclusive, are really expensive for small brands to join and simply put the issue at another level because, for a customer, leaving the coalition is the same as leaving another brand loyalty program.
This protocol is decentralised and is based on Smart Contracts on the Ethereum blockchain. The Satisfaction Protocol handles the most important and sensitive aspects of the Sanblock project regarding the token economy, the rewards attributions and the various merchantrules.
Satisfaction Token & Merchant tokens
Satisfaction Token (SAT) is an ERC20 tradable cryptocurrency on the Ethereum blockchain. Merchant Tokens is the name used to describe a token created by a merchant using the Satisfaction protocol. Merchant Tokens are linked to the SAT at a ratio defined at their creation (e.g 100 MyShopCoin = 1 SAT).
Merchant Tokens contract only allow them to be sent to predefined addresses (the merchant wallet(s)), and through peer to peer transfer handled by the Satisfaction protocol forthe same amount of SAT.
The transfer of Merchant Tokens between customers is fairly simple. The following schema shows the process by which a customer (C1) can exchange Merchant Tokens A (MTA) to a customer(C2) against other Merchant Tokens B (MTB). The SAT ratio of MTA is 1/10 and the SAT ratio of MTB is 1/100, MTB/MTA is equal to 1/10, therefore, C1 must send 10 times less tokens than C2 as required to have an equivalent number of SAT being traded.
The Loyalty protocol handles, as its name implies, the customer loyalty aspects of the Satisfaction protocol.
Using Smart Contracts we can implement any kind of already existing loyalty programs while autonomously linking them together to create a coalition which does not make brands lose theirinvestment in their customers even if they shift away.
A customer C make a purchase to a merchant M, merchant M decided to create a Cash Back program rewarding customers with a 5% discount. When C makes a purchase of X ETH he then receives X * 5/100 ETH in SATs embedded in the Merchant Tokens (MT).
Several ranking mechanisms will be possible, our recommendation and first implementation will be to define levels of token already earned to increase the ranking of a customer. Like every pieces of the Satisfaction Protocol, the ranking strategy will be written in a Smart Contract on the blockchain to ensure its immutability and prevent policy rollbacks which are common practices among different industries when it comes to loyalty programs.
Sandblock will create its own cryptocurrency — named the Satisfaction Token (SAT) — during an Initial Coin Offering (ICO) which will take place during the last quarter of 2017. The precise date will be announced later on the official Sandblock website https://sandblock.io.
The Satisfaction Token will be created on the Ethereum blockchain using Smart Contracts in accord with the ERC20 standard. The SAT crowdsale is set to run for a duration of 30 days maximum, during which contributors will be able to purchase SATs for a discounted price depending on the moment of their purchase.
The crowdsale maximum cap is set to be $20M (twenty million US dollars) evaluated in ETH. As we do not want to raise more money than we need, we still have the desire to let anyone the opportunity to contribute while avoiding large investment designed to have control over the supply.
SATs will be transferable as soon as the ICO succeeds, either due to the reach of the maximum cap or by reaching the end date of the contribution period, we are working with exchanges platforms in order to have the SAT listed on those platform for trading purposes.
Enjoy earning on tradable cryptocurrencies for being an awesome customer!
Join our Community