How Artificial Intelligence Drive Customer Loyalty?
For successful marketing, it is necessary to find out the answers to two significant questions.
The questions include “what are the real requirements of the customers?” and “how is your marketing approaches fulfill their requirements?”
To get the answers to these questions, marketers need to utilize Artificial Intelligence (AI). AI technology helps to provide outstanding customer experience and satisfaction. This innovative technology helps marketers to retain customers for a long period and build trust in your brand.
Nowadays, marketers are facing hard challenges in retaining existing customers as well as attracting new customers. Increasing brand among a pool of brands in the market is tough for marketers who use traditional marketing methods. Here, digital transformation plays a vital role.
Moreover, advancements in the developments of emerging technologies like artificial intelligence, machine learning, and predictive analytics may help companies in retaining their brand in the market.
AI applications and artificial intelligence devices bring personalized marketing experience to customers. They provide customer-centric recommendations and suggestions to customers. AI is the real spirit in this data-driven marketing world. It can build trust & optimize customer loyalty.
Artificial Intelligence can perform & automate monotonous, repetitive tasks, and speed up the current business processes. This helps organizations to get new opportunities that enhance marketing efficiency and accelerates the strategy of delivering services at the right time to the target person through the right channel.
In this data-driven loyalty marketing, enterprises should focus on convincing the customers. This would help both customers and the brand. If you attract more and more customers, you can excel in your financial and operational margins. Moreover, competitive offerings always help brands in building strong relationships with their customers.
A study states that currently 80% of companies are using AI technologies (Machine Learning & Deep Learning), and 30% are in plans of investing in AI.
It is also proved that with the benefits delivered by AI in improving customer experience and satisfaction, 62% of companies have planned to invest in Artificial Intelligence in the next three years.
AI Builds a Strong Relationship between the Brand & Customers
Any organization is primarily seeking to build a long-lasting relationship with their customers. In general, brands collect user information when they visit or search through a web portal. Using Artificial Intelligence, the companies are analyzing the vast datasets and predicting customer behavior easily. This could be done by implementing machine learning and predictive analytics.
Therefore, AI tools and Machine Learning (ML) models play an essential role in connecting brands with the targeted audience.
AI Advances Customer Loyalty through ML & Data Analytics
Source: Digitalist Magazine
To provide improved personalization, brands are using ML and data analytics. These technologies help to derive insights from customer data, draw patterns, and make predictions as well as decisions. Machine Learning algorithms can process the vast data sets and understand the search behavior of the customers and time they spent on browsing. This helps brands to provide personalized customer experience.
The more time an individual spends on browsing and purchasing a specific brand means that the brand is providing increased personalization to its customers. When you meet your customer’s needs and respond quickly to all of their queries, your business will surely get success.
AI Helps To Make Dynamic Pricing Strategies
One of the major difficulties for the pricing managers is the daily fluctuations of prices. Many e-commerce organizations are utilizing Machine learning for managing the supply and demand of the customers. It provides a better knowledge of pricing to the marketers that customers are willing to pay at any time.
Along with this, it is also pushing the intended customers above the threshold of purchasing. But to be dynamic with pricing, a lot of information is needed, such as previous customers’ purchases, their browsing activities, brands & product information, range of pricing, supply information, etc.
Provide Personalized Recommendations for Individual Experiences
Personalization is very important for gaining consumer loyalty. Customers are more likely to buy if they provide them with something they are looking for. Obviously, If you get what you want, you have no chance of going to a competing brand.
It is important to understand the preferences of your customers for offering successful personalization. Instead of manually deleting each user history, Artificial intelligence can help you find what your customers like easily and quickly. Based on that, you can customize the products you suggest for them.
AI helps Optimize Your Prices with Self-Learning Algorithms
Did you know that prices are the crucial factor for customers when making a purchase decision? So even if you have a great product to sale, you may lose consumers if you don’t give the right price. Getting the product cost right is really an art. You ensure that your business is profitable, but at the same time, it should not make customers pocket empty.
Most of the AI-based software solutions use self-learning algorithms to scan large amounts of information and analyze different price scenarios, and finally, they come up with right price indications. They look at contextual data, competitors’ price, past trades, and then make a loss/win analysis.
AI Chat bots for Customer Engagement
AI Chatbots are here to handle queries of customers and resolve them instantly. As it offers 24/7 service, consumers can get a good impression of the business and gain loyalty.
But there is so much more to AI chatbots than answering customers’ queries. You can use AI chatbots to notify your consumers about your new events, products, discounts, etc. They can inform customers about the status of their orders.
Use Predictive Analytics to Keep Your Customers Well-Stocked
Understanding the requirements of your target audience is a key to each and every marketing strategy. With Artificial Intelligence, you can get insights into their customer behavior and forecast what they really want. ML Based algorithms look at consumers last past buying list to predict their future requirements.
Using this strategy, you can identify potential threats that affect their purchasers’ journey. It gives you the right data in advance, so you can take the right action on it ahead of time.
Making pricing strategies will also helpful for companies. Based on the demand for a particular product in the market, the price has to be decided. This will be actively done by AI. Artificial intelligence tools collect and compare the prices of your products with the competitors’ products. Knowing different prices for the same product helps companies in deciding the best price for the most sought-after product.