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Artificial Intelligence & Customer Loyalty: A match made in Loyalty Heaven

Team BigCity - May 16, 2024

Team BigCity

In today’s digital age, brands who know how to leverage AI in their marketing decisions have a serious competitive advantage. And the ‘AI revolution’ has come down to customer loyalty, making companies realize the power of data to make game-changing decisions.

And it’s no surprise – in fact, companies that are data-driven are 23 times more likely to acquire customers and 19 times more likely to remain profitable!(1)

The question lies in how brands are using this data to become more consumer-friendly, or to a point where they create brand advocates.

Artificial Intelligence, Machine Learning, and Customer Loyalty

Integrating AI techniques to identify repeating customer journeys and using ML-based algorithms to evaluate a customer’s purchase decisions, will eventually lead to creating customer relations, thus building loyalty.

For instance, in the retail sector, as customers build confidence in a purchase decision, AI can help narrow down the selection by recommending products based on the shoppers’ needs, preferences, and fit.

E-commerce giant, Amazon uses AI(2) for personalized product recommendations based on previously purchased items and utilizing the search history for that particular item.

How brands are leveraging AI for its ability to “act like humans.”

With the power of problem-solving, reasoning ability, and identifying customer patterns, AI helps brands to understand what their customers exactly want.

A targeted approach! AI can help brands plan how to target a shopper proactively.

Sephora predicts when a product is likely to run out by keeping track of its purchase history and targets them with personalized offers to encourage customers to re-stock products.

Starbucks gives its consumers a unique experience by processing their purchase data and allowing them to collect bonus points when trying an item.

Tommy Hilfiger uses NLP (Natural Language Processing) and deep learning to scan through massive databases to identify main themes in colors, styles, and silhouettes of their products and implement the changes in their collection to drive sales.

Using Artificial Intelligence to build Customer Loyalty

AI can be a valuable tool for businesses looking to improve the efficiency of their loyalty programs and to provide a better experience for their customers.

Below are some of the ways brands can leverage Artificial Intelligence to achieve true customer loyalty.

a) Chatbots for better customer assistance

Integrating a chatbot mechanism in a loyalty program help in improving customer interaction as chatbots can handle 80% of routine tasks and customer questions(3) within the first interaction.

BigCity provides custom-built chatbots for resolving queries faster, delivering easy-to-redeem rewards with simplified messaging, and most interestingly, providing themed chatbots with various engagement modules.

b) Personalized Offers based on customer’s purchase records

A report states that 49% of buyers(4) have made impulse purchases after receiving a more personalized experience. Every transaction, online activity, and referral generates mass data – which can be used to strategically create personalized loyalty programs.

Building tailored loyalty platforms, offering relevant rewards, or crafting custom email content shaped by which CTA links the person tended to click on in the past, are some of the best uses of AI for personalization.

c) Dynamic Customer Segmentation to offer relevant rewards

With the help of AI in identifying customer purchasing patterns and engaging experiences, brands can segment customers into different categories that update ‘dynamically’ depending on how their behavior has changed.

When brands create customer cohorts based on purchasing trends, they can offer tailored incentives that will speak to those customers in particular, for example, offering instant wins for trade partners or delighting consumers with experiential rewards.

d) Predictive Modelling to attend to customer needs

AI & machine learning algorithms can identify the customer’s past buying patterns and predict the area of interest of their next purchase, thereby allowing brands to tailor their marketing initiatives to meet customer needs.

For instance, we built an app-based loyalty program that showcases rewards, premium privileges, and engagement activities that catered to a definite audience making them feel engaged, rewarded, and happier to be associated with the brand.

When AI met Loyalty, it was a match made in heaven!

The better insights a brand gets by incorporating AI in its marketing solutions, the more it impacts building greater customer loyalty.

Thanks to AI and cutting-edge technology, BigCity helps brands to drive customer loyalty by:

To create a refined loyalty program, BigCity also provides tactical solutions to build loyalty platforms that are application-based, easy to use, have modules for learning & development, integrate engagement tactics, and more.

​Partner with us to build tailored promotional campaigns that drive customer loyalty, boost sales, and build engagement. Drop us a line at today!

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A promotech company specializing in tactical & loyalty campaigns using rewards, engagement-based technology and loyalty strategy backed by AI & Insights