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Importance of AI in customer loyalty

The expectations of consumers today from their favourite brands has increased ten-fold, and with big companies such as Amazon providing more personalised experiences tailored to individual user interests, have disrupted customer expectations.

The loyalty aspect of the business is no exception. Traditional loyalty programs wherein consumers collect points to earn special rewards, offers or discounts has become universal. Brands now need to leverage new technologies to provide an experience that their customers expect or risk them losing interest.

Here is when artificial intelligence (AI) comes into play. AI is paving the way in providing new opportunities for brands to offer to their customers with hyper-personalised experiences, leading to greater customer loyalty.

Increase in AI involvement

From data-mining to powering intelligent insights to automating manually-intensive processes, organisations have seen the potential that AI can bring.

The variety of potential uses of AI is vast. The companies that invest in AI technologies, are doing so to specifically improve customer experiences.

Role of AI in loyalty

There is a lot of data on the internet. Every activity done by users generate data. Organisations, therefore, can obtain a lot of useful data about their customers. For instance, there are different data points that Amazon collects about their customers -

  1. The frequency of customers logging on and when

  2. Their browsing history

  3. The frequency of their purchases

  4. The time of day of the purchase

  5. What they purchase

Collecting and categorising these pieces of information as well as storing it in the right place for a human would become an arduous and a time consuming task but not for machines. Through automation, AI can easily complete these tasks. Furthermore, it can even gain insights for the data.

This combination of AI and big data provides exactly what is needed to take customer experiences to the next level. Insights can be drawn and used to drive loyalty through greater personalization such as recommendations based on customer lifestyle, interests and activity.

Enhanced customer insights

Developments in AI have now made it possible to analyse this data to provide insights into users lifestyles and interests. AI can teach a mobile device to analyse its on-device image gallery to produce insights about its likes and dislikes, their desires, and their intentions for the future. Photos become a data source that can be used to align your customers with what your loyalty scheme offers.

AI as a differentiator

Metadata and understanding visual information will be the main weapons in the battle for customers’ attention. By leveraging visual information from customers’ photos, it provides experiences and recommendations that are personal, targeted and exactly what customers desire.

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