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BizReport : Loyalty Marketing : May 11, 2017

Brands: How to use AI to increase customer loyalty

Consumers want more personalized experiences online, and according to one expert, AI is one way to increase the personalization level - and increase customer loyalty.

by Kristina Knight

Kristina: What is the connector between loyalty and artificial intelligence?

Phil Yakuel, CEO & Founder, Optimove: It's now up to brands to meet these heightened consumer expectations. In many ways, loyalty is now in the hands of the customer in that today's shoppers, especially those part of the decidedly fickle Gen Z category, expect brands to be loyal to them by showing that they're listening.

Beyond loyalty programs, an actual customer retention program is essential, and must carefully integrate customer data science and artful marketing. Marketers should forgo one-off deals and instead invest in the long-term relationships, and this requires ongoing, personalized communications, and software to constantly recalibrate their outreach based on customer data. Customers are not static, so your campaigns can't be either.

Kristina: How can brands better use AI to increase loyalty?

Phil: If marketers are able to segment their customers into smaller and smaller groups predicted to behave similarly in response to particular actions, they will almost always realize more successful marketing campaigns, with immediate improvements in sales and retention - and, of course, customer loyalty. Artificial intelligence helps them do just that.

Kristina: Can you offer an example?

Phil: If you know that customer A doesn't respond to your offer for free bread, it's because they're gluten-intolerant, and not because they don't check their email on weekends -- which is why customer B didn't respond. Understanding that level of detail can make all the difference to how they view your brand and where they take their loyalties. And as a side benefit, targeting only the most relevant customers with each action can yield lower marketing costs.

Tags: advertising, artificial intelligence, loyalty marketing, loyalty marketing trends, Optimove

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