What Does Artificial Intelligence Mean For Loyalty Marketing?

Without hyperbole, the magic of artificial intelligence in marketing is its pattern recognition, particularly when it comes to very large data sets. This ability to analyze and unpack behavior patterns empowers your loyalty marketing, which is by itself, already magic, too. 

Today’s marketing trends all revolve around customer satisfaction, engagement, and connection, in the hopes of fostering customer loyalty and avoiding customer churn. Think about it: your inbound marketing efforts attract your target audiences, then you nurture them with personalized marketing and keep them coming back with loyalty marketing. 

Loyalty marketing isn’t just rewards programs

It’s about building a relationship (actually, lots of them). Loyalty marketing, also called artificial intelligence marketing because of its necessary use of AI, uses machine learning (a form of artificial intelligence) where human abilities simply can’t achieve the same results at the same efficiency—accelerated pattern recognition, social listening, sending the right offer to the right person at the right time, and doing all this at scale. 

Loyalty or rewards programs build the foundation of data you can use to guess at what your program member might buy, based on their established buying habits and preferences. 

But using AI gives you accurate insight based on more robust data in addition to your loyalty program data, enabling you to personalize your customer’s experience further through behavioral targeting, and therefore influence the next buying decision. 

For example, AI gives you insights learned from countless customer behavior patterns and data so you know when a customer might be running out of their night serum and you can make it so easy for them to re-order and receive their new bottle the next day. This is what Kiehl’s is doing for customer loyalty

You might entice your customers with rewards, but AI helps you gain rewards by understanding how to effectively influence your customers’ buying behavior. 

Loyalty marketing is more than accepted: it’s expected

Today, customers are more and more familiar and comfortable with experiences that have been streamlined using their data, and therefore more willing to exchange their data for easier, smarter retail experiences. Customers expect marketers to use AI technology and their captured data from store activities and interactions: 

  • To deliver personalized interactions
  • To provide omni-channel support and services
  • To listen on social media 

Using AI helps you send effective, personalized incentives: the “right offer to the right person at the right time in the right channel” because AI gives you data on what your customers are saying about you or their needs relevant to what you can offer, through digital breadcrumbs like their purchases, searches, reviews, posts, and website visits. 

It’s no longer about what you want to sell, but what your customers want. That’s what drives customer loyalty. And social listening isn’t just about your product—it’s about values and beliefs. Technology has made the world smaller, and what are you doing to adapt to it? 

Customer loyalty through brand values and shared beliefs

Technically, marketers are here to sell, but the rising generation of Millenials and Gen Z, not to mention the “woke” Gen Xers, believe they’re here to make this world a better place, and that you should be, too. 

So you need to know what your customers are passionate about. 

50% of consumers worldwide are belief-driven buyers: They will switch away or toward a brand based on that brand’s stand on societal issues. You want loyalty? Listen to your customers and speak up. Again, AI can pick up patterns of discussions and help you determine the values and beliefs most relevant to your customers. 

Don’t think you can just skate by without taking a stand. 65% of consumers say they would NOT buy from a brand who stays silent about issues the brand should actually participate in. 

On the flipside of that, speaking up will earn you customer loyalty and advocacy. 48% would not only defend you but even criticize your competitors, and 51% will stick with you and buy from you exclusively and frequently. 

Acquiring and keeping customers through collecting and using data

AI-driven hyper personalization will only be as good as the human experts that put the personalization engine together. Even the most beautiful mansion can’t survive a shoddy foundation and construction, no matter how great it looks on the outside. 

There’s still a lot to figure regarding how AI can best deliver premium user experiences for long-term relationships and loyalty programs. But we can keep the momentum going, and keep collecting the information we need to personalize incentives, truly connect, and build a relationship with each customer, and improve collecting practices and machine learning. 

The evidence is already out there: AI and deep learning are keys to marketing success, and they also boost loyalty marketing. 

Sarah Cooper

You may also like
Only relevant content is visible to your audience
Blog

Only relevant content is visible to your audience

Only relevant content is visible to your audience. We always talk about content marketing to attract audiences but it’s amazing how many businesses actually lose sight of the audience.
Read More
Align martech solutions with your marketing and engagement goals
Blog

Align martech solutions with your marketing and engagement goals

It’s going to be a long while before AI truly takes over from humans, if it ever will. The companies that use AI most effectively will be those that work with it, and allow it to take over processes that can and should be automated, freeing up employees to be more creative than ever, to connect dots they wouldn’t otherwise, and to be great translators of data.
Read More
The magic of dynamic content personalization
Blog

The magic of dynamic content personalization

Dynamic content and personalization together create a spark that can be super effective in firing up your marketing and sales goals.
Read More
The biggest lesson you need in business: product market fit
Blog

The biggest lesson you need in business: product market fit

Are people dying to get their hands on your service or product? How much is the demand for your product, and to what extent would you satisfy that demand?
Read More
Hyper-personalization: The fine line between impressive and invasive
Blog

Hyper-personalization: The fine line between impressive and invasive

People now expect hyper-personalization, but don’t want their privacy invaded. This is the privacy paradox.
Read More
The Future is Now—AI-generated content is here to stay
Blog Uncategorized

The Future is Now—AI-generated content is here to stay

Marketing standards and trends in 2016 or 2017 are no longer the done thing in 2019, and more changes will...
Read More
You have data tools, but do you have a data culture?
Blog

You have data tools, but do you have a data culture?

Data analytics tools are great and they’re getting better every year. Marketing continues to utilize and develop personalization through data-driven...
Read More
Artificial Intelligence Will Eliminate Jobs – and Create Them
Blog

Artificial Intelligence Will Eliminate Jobs – and Create Them

There’s a lot of fear around AI’s threat to disrupt a wide swath of jobs, and there seem to be a lot of good reasons why this will be the case. But there’s also no need to panic. Just as the Industrial Revolution disrupted countless jobs, a significant amount were also created.
Read More
How to Execute a Personalization Strategy
Blog

How to Execute a Personalization Strategy

There’s no official guidebook or roadmap for kicking off a personalization strategy at scale. Every organization is different, with varying...
Read More
What Does Artificial Intelligence Mean For Loyalty Marketing?
Blog

What Does Artificial Intelligence Mean For Loyalty Marketing?

Without hyperbole, the magic of artificial intelligence in marketing is its pattern recognition. And this ability to analyze and unpack behavior patterns empowers your loyalty marketing, which is by itself, already magic too.
Read More
Personalizing The Customer Experience In The Physical & Digital Worlds
Blog

Personalizing The Customer Experience In The Physical & Digital Worlds

The old version of demographic personalization “group-ized” rather than truly “personalized,” lumping people together and sending generalized content to each...
Read More
Forget demographics: behavior segmentation is more effective
Blog

Forget demographics: behavior segmentation is more effective

Segmentation has always been key to successful marketing, but a lot of companies still don’t use it, and even when...
Read More
Why behavioral segmentation matters more than demographics
Blog

Why behavioral segmentation matters more than demographics

Behavioral segmentation gets at the heart of what customers are doing, a pattern of past/current actions and a projection of...
Read More
The Nuance Between Customization & Personalization – Know the Difference
Blog

The Nuance Between Customization & Personalization – Know the Difference

Customization and personalization both give users the opportunity to change their digital environment to suit their tastes and preferences, but they’re not the same and shouldn’t be used interchangeably.
Read More
How to Personalize the Customer Experience At Scale
Blog

How to Personalize the Customer Experience At Scale

How do you personalize at a high level for effective conversions? It depends on how you use today’s technology, not just in personalizing, but listening at scale.
Read More
What is Personalized Pricing and Should you Use It?
Blog

What is Personalized Pricing and Should you Use It?

Personalized pricing seems like it’s the soulmate of personalized marketing. What are the benefits and downsides? Is this something you...
Read More
Is personalization still possible in the age of GDPR?
Blog

Is personalization still possible in the age of GDPR?

Now we’re officially in the GDPR age, when you can face heavy fines if you put a toe out of line when it comes to audience privacy. Does that mean your data for personalized marketing is off-limits?
Read More
Personalization Is The Key To Driving Customer Loyalty
Blog

Personalization Is The Key To Driving Customer Loyalty

We have all felt the pain of too much "noise," from overflowing personal and professional inboxes, to unceasing and unwanted spam calls. Even traditional means like postcards, flyers, and brochures add to items we recycle, or in a fit of pique simply throw away.
Read More
Wrench.AI Partners with Patent Capital Fund Ideaship to Provide Personalized AI Experiences at Scale
Blog News Partners Platform

Wrench.AI Partners with Patent Capital Fund Ideaship to Provide Personalized AI Experiences at Scale

Salt Lake City, Utah—April 22, 2019—Wrench.AI today announced it has received a seed investment from Ideaship, a patent capital fund...
Read More
Why We Built an App to Make Personalization Easier
Blog News Partners

Why We Built an App to Make Personalization Easier

The Wrench.Ai origin story involved a "Whoa, Nelly" moment in the summer of 2017, when we were a marketing agency—no...
Read More
Previous Post
Next Post

LEAVE A REPLY