5 ways to increase customer loyalty - The AI approach


According to a software company, ‘Artificial Intelligence has been driving the key business processes of major enterprises for over a decade – helping businesses like Amazon, Google, and Walmart recommend products, automate supply chains, personalise content, and detect anomalies in purchase behaviour to prevent fraud.


There is a link between customer service and customer loyalty. Chatbots are good for customers who want instant responses. Consistent, good customer service is a very important part of any business. Good customer service can lead to increased customer loyalty and returning of customers, which leads to more revenue.


We have listed below some useful stats on customer loyalty;

  • Drift: 64% of internet users say 24-hour service is the best feature of chatbots.

  • Drift: 37% of people use a customer service bot to get a quick answer in emergencies.

  • Forbes: Companies with a customer experience mindset drive revenue 4-8% higher than the rest of their industries.

  • InMoment: 50% of loyal customers will make more purchases with their preferred companies.

  • SAP: 60% of customers say unexpected rewards are the biggest reason they'll stay loyal to a brand.

  • Accenture: 57% of consumers spend more on brands to which they are loyal.

  • HBR: Loyalty leaders grow revenues roughly 2.5x as fast as other companies in their industries.

  • Incentive Solutions: Adding a loyalty program to an e-commerce platform can increase average order quantity by 319%.

Conversational & interactive brand messaging using virtual agents – Increased customer service

Virtual agents make use of Artificial intelligence. According to an IBM study, AI-driven virtual agents can drive customer satisfaction and cost savings amid COVID-19. Virtual agents also support interactive brand messaging. This is known as conversational AI. Conversational AI enables you to personify your brand to create a truly interactive experience. Businesses often use chatbots as part of their marketing and brand strategy. There is a link between a business brand and customer loyalty. Conversational AI in your virtual agents is a huge competitive advantage.


Brand marketing: Predicted content & offers

AI data Insight & predictive analysis is useful for any business. AI and machine learning can help you to understand your customers more. AI can be used to find customer insights such as behaviour trends. These trends may include buyer trends. Having data insight on your customers enables you to make better business decisions. Using AI data analysis can also be used by sales and marketing teams. If you understand your buyers more, you can provide them a more bespoke online experience. You can also use this data to make predictions on what your buyers may do. You can email them products that they may like based on their viewing history on your ecommerce website. Not only does this increase sales and turnover, this also makes the customer find things they want much easier. Whilst, this is more a SEO and SEM (marketing) activity, this is all part of increasing customer loyalty.


The customer journey: Keeping the ‘browsing to buying,’ task simple

AI can be used to simplify online shopping experiences. Buyers like, simple, easy to use tools to make their viewing experience and check out experience as seamless as possible. By improving and simplifying your customers shopping experience you are likely to have happier customers which will result in customers. You can also use AI chat bots to help buyers if they need urgent assistance.


Social media powered by AI

Social media can increase customer awareness. Social media can be used to communicate to prospective customers and current customers. AI is becoming a key component to social media networks such as LinkedIn Twitter and Instagram. LinkedIn also uses AI to offer job recommendations, to their users which provides extra value to those searching for jobs using the platform. LinkedIn also provide suggestions of people that you might like to connect with. This is AI in use adding value to their customers.


Digital loyalty programmes – From in person to online

The aim of loyalty programmes is to compensate customers for being ‘loyal’ to your brand by offering them things like, cash back, travel miles or points. Some businesses offer points that can be used as cash in their stores or on their ecommerce websites. Larger firms are more likely to operate loyalty programmes. CPG, FMCG, and travel brands often provide these schemes. With the use of AI you can create AI based customer loyalty programs. A lot of brands are ensuring that their loyalty programmes also work online, digitally, and not just in person at check out. More than ever people are transacting online, which is a growing trend, especially now during the covid-19 pandemic. Loyalty schemes need to work online and AI can enhance these schemes.


There are many commercial benefits of using AI to increase customer loyalty. Using artificial intelligence to create a more personalised experience, which increases customer loyalty is going to become the ‘norm,’ for brands.


At AtomX Digital our team of customer experience specialists and AI engineers will recommend this most ideal AI solution for your business to help you to increase revenue and improve customer loyalty.

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