4 Ways to Revitalize Customer Loyalty With Artificial Intelligence

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It seems that every business today is talking about how AI (Artificial Intelligence) can impact data-driven customer marketing and brand loyalty.

Businesses have been quick to respond to its adoption,with 37% of themclaiming to have implemented AI in some form. With over80% of emerging technologiespredicted to have AI foundations by 2021, it has truly come to the fore.

AI has opened up a lot of possibilities on the CX front, withover 40% of marketing and sales teamstestifying to this by crediting their success to AI and ML (Machine Learning).

The biggest benefit of AI is that it allows businesses to make sense of humongous amounts of data in real-time. Brands can leverage its power to make effective use of this data to enable loyalty marketing and positively impact customer behavior.

If you want your business to be a cut above the rest, you need to jump on the AI bandwagon. It is a great tool to enable user retention; doing it right could mean loyal customers for life. Here, we’ll look at four ways you can use it to improve customer loyalty.

Predictive analytics is quite thetour de force, as research firm Aberdeen found that companies using it saw a21% YoY growth in their organic revenuecompared to an average of 12% for companies that didn’t. It helps companies harness customer data to predict future trends and inform the purchase behavior of customers.

Starbucks uses predictive analytics for its mobile app and loyalty card to collect and analyze customer data. With it, they built quite the mobile experience, processing data acquired through predictive analytics to send customers personalized messages.

According to Accenture, as many as83% of organizationscould be better served if they provided better in-person customer service.

This is where businesses can implementAI-powered chatbotsto enable personalization for customers byautomating answers to 80% of routine questions. This not only empowers customers and provides a better CX, but it also speeds up the turnaround time by 500% and results in a 66% reduction of operating costs on the part of businesses.

Personalization is so necessary today that almost56% of consumers claim they would return to shopwith a business only if it offered a personalized experience.

AI can greatly help supplement apersonalized experienceby helping to discover what customers need quickly. You can then use this data to tailor your services or product recommendations to them.

UK-based fashion company,Thread, is one example where AI works wonders. Thread’s AI algorithm uses customer data derived from quizzes and finds patterns to offer customized recommendations and provide data about personal style. Its implementation was so successful that thecompany saw a 79% YoY growthfor the last three years.

A vastly underexploited benefit of AI is for product innovation. Since AI can help you understand purchase behavior and interaction patterns of customers, why not use this information to design products more suited to them?

An excellent example of AI for product innovation is the high-end fashion retail brand,Tommy Hilfiger. In its project,Reimagine Retail, Tommy used AI research tools to uncover buyer trends to learn how customers viewed their products.

The company used NLP (Natural Language Processing), computer vision, and deep learning to analyze a huge database of visuals and text and identify the main themes in colors, patterns, styles, and silhouettes of their products. They then shared the findings with designers so that they could implement them while thinking about their next collection.

Businesses are on the precipice of a tantalizing frontier. Fascinatingly, this could just be the start of it as AI adoption is poised todouble economic growth ratesacross industries by 2035. 

As AI develops and uncovers more exciting opportunities, business is going to take a more intelligent turn as marketers will be able to identify trends and implement smarter measures to improve customer experience.

Dhruv Mehta is a Digital Marketing Professional who works at Acquire and provides solutions in the digital era. In free time, he loves to write on tech & marketing. He is a frequent contributor to Tweak Your Biz. Connect with him on Twitter or LinkedIn.