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Why AI Is Important for Customer Loyalty?

Here are a few reasons why AI and machine learning are becoming the most important tools brands use to encourage customer loyalty.

Any business is on a mission to gain customer loyalty, which can be described as customer behaviors that are beneficial to the business. Broadly speaking, customer loyalty can be categorized into three groups: customer retention, advocacy and purchasing.

Many different factors impact such behaviors, but customer experience (CX) is arguably the key one and with the advancement of artificial intelligence, the CX optimization has taken a whole new level right from the very first encounter with a brand.

Here are a few reasons why AI and machine learning are becoming the most important tools brands use to encourage customer loyalty.

1. Scoring Customers to Predict Their Behavior

Marketers use AI to analyze their historical customer data and to produce actionable insights out of it. Such insights not only allow better customer understanding, but also enable marketers to predict their customer behavior, such as:

  • Which prospects are more likely to respond to certain offers
  • Which product category customers will be most likely to purchase next
  • Content that is most likely to help convert certain customer segments

These are just a few examples that illustrate how AI is transforming marketing and how the technology impacts the customer journey.

2. Individualizing Customer Experiences

Data-driven hyper-personalization has been regarded as one of the most important CX trends that can make a real difference on how consumers are engaged by and perceive brands.

However, the most successful brands are pioneering a new trend – they are replacing hyper-personalization with AI-powered individualization.  

AI solutions are able to adapt brand communications based on the individual user’s needs, offering a personalized experience that drives engagement and makes navigation, content consumptions and purchasing journeys effortless. With real-time learning technology, AI is able to evaluate a user’s moods and behavior in order to gain insight into their current preferences, and then dynamically modify content according to the gathered information.

Such individualized experience ultimately leads to stronger relationships between consumers and brands and makes the shopping experience enjoyable.

Consequently, the integration of AI is changing the marketing technology’s landscape, with companies who possess the AI expertise gaining significant advantage over others.

3. Limitless Communications

Not long ago, the large majority of people were completely skeptical of the thought that AI systems could be able to establish better interactions with humans than actual humans would.

Today, it is already a norm to be greeted by an AI-powered chatbot the moment one enters an e-commerce website. At the same time, AI-assisted content production is spreading across other marketing channels, including social, email and every other major marketing tactic across the customer journey.

AI-powered content scoring has enabled marketers to produce compelling communications and to engage customers just like a real shopping consultant would. But here’s the thing: the technology is likely to do the job even better, as it evaluates the user’s reactions and is able to learn from them in order to better segment the customers and adjust content directed towards them.

This has been a huge shift towards optimizing the customer experience as it helps form an even more cohesive multichannel service experience connecting customer touchpoints. As technology advances and new solutions arise, the latest developments in AI are shaping the customer experience in the digital era.

Furthermore, brands and developers are focusing their energy on how to optimize the customer experience to the point that it will actually encourage loyalty in an extremely competitive environment. In light of that, it’s fascinating to see how machine learning is being used to make highly personal and human interactions that essentially entice attachment.

How to Start Gaining Customer Loyalty Using AI?

 First, you might be interested in learning more about Customer Modeling and Archetyping (or generating emotionally intelligent insights about your customers using AI) and the advanced Content Scoring & Matching (or identifying content that is going to perform best towards your specific audiences).

As soon as you are ready to take the next step, request a demo of the Genus AI Platform – see our marketing AI solutions in action and learn how they can help you deal with your business challenges.

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