Using artificial intelligence (AI) can help you offer personalized experiences to your customers and potential buyers. But did you know that it can help you build customer loyalty? Here is how:
Grand View Research, Inc. predicted that the global artificial intelligence (AI) market size will grow to $390.9 billion by 2025.
Why will this market grow so much?
Because marketers who want to stand out from the competition are finding ways to implement artificial intelligence to grow their businesses.
A Gartner study found that 59% of marketers adopted AI-powered solutions for their businesses in 2019. Most marketers planned to implement more AI-powered applications by 2022.
There is a need to offer better customer experiences and automate tasks. And AI-powered solutions can help you do that effectively.
With AI, you can make better decisions, follow a customer-centric approach, and improve customer experiences. All of this will eventually help you build and enhance customer loyalty.
But how can AI help you do all of this?
Let’s find out.
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How Can AI Help You Build and Enhance Customer Loyalty?
AI is continuously shaping the future of marketing.
It is offering marketers a way to offer custom experiences that meet the needs, interests, and preferences of individuals. Offering personalized experiences can encourage customer loyalty and increase customer lifetime value (CLV or often CLTV).
Here are a few ways in which you can use AI to nurture customer loyalty:
1. Leverage Personalization
Using AI-powered solutions can enable you to identify the needs of each customer by tracking their behaviors and interests across touchpoints. You can then use this data to give them custom product recommendations and offers.
This will help you channelize your marketing efforts in the right direction and deliver better customer experiences. It will, eventually, help you build loyalty.
91% of consumers are more likely to shop from brands that remember and recognize them and give them relevant recommendations and offers. Another study found that 72% of consumers only engage with messages tailored to their interests.
With personalization, you can offer consumers what they are actually looking for or what they’re interested in. And when you do so, they are less likely to look up to your competitors for solutions.
2. Reduce Resolution Time with AI-Powered Chatbots
Have you ever had to wait for a long time for a customer service agent to pick up your call?
It’s frustrating, isn’t it?
Offering consumers fast response times is crucial for businesses that want to stand out. But it isn’t always easy to do so.
You need to leverage the right technology to handle large volumes of customer inquiries. This is where AI-powered chatbots come into the picture.
There are many chatbot platforms that allow you to build custom bots for your business. These automated, AI-powered bots can help you handle multiple customer requests at once and provide faster, reliable solutions.
They can also help you improve the quality of customer service experiences you offer to your existing customers and potential buyers.
Using these AI-powered chatbots can help you:
- Offer personalized customer care support, 24/7.
- Set up a knowledge base with responses to basic customer inquiries.
- Bots can learn with every customer interaction using machine learning. So, you can offer improved experiences every time.
- Collect more information about your customers/clients that will help you deliver better experiences. Your human agents will be able to see each consumer’s full history, issues highlighted, and solutions offered.
- Some intelligent bots can also help you drive sales by recommending, cross-selling, and upselling products to customers.
- AI chatbots can also ask relevant questions and use the customer’s responses to make tailored suggestions.
3. Run Data-Driven Customer Loyalty Programs
AI-powered solutions allow you to collect data and segment customers based on their past purchases. This can help you determine their customer lifetime value (CLV), their future buying potential, and how likely they are to leave.
Using these details about your customers, you can offer incentives to your most-valued and high-paying customers. This will help you enhance customer loyalty, improve your retention rate, and bring in more business.
4. Predict Customer Behaviors
AI-powered solutions can help you predict the future actions of your customers using predictive analysis. By analyzing a customer’s past behaviors and purchasing history, AI-powered tools can help you identify what they may look for next.
You can also find potential threats that could derail customers from the buying journey.
For example, you can keep track of what a customer purchases and how often they purchase it. Tracking this can help you ensure that you have enough stock and you don’t run out of products.
You can also send personalized discount offers on their favorite products, right when they are thinking of buying them. This can help you shorten their sales cycle.
By keeping customers happy, you can nurture their loyalty towards your brand.
5. Engage Your Customers Better
What is an important driver of customer loyalty?
A study by PwC found that consumers are likely to endorse a brand, make repeat purchases, and be more loyal to a brand if they feel appreciated. They are also willing to try additional products from brands that deliver superior customer experiences.
One of the best ways to engage your audience and make them feel valued is to interact with them on social media.
You can use AI-powered social listening tools to identify the products or services they like, their top complaints, and the type of content they resonate the most with. You can use these insights to address their common questions and concerns and encourage positive interactions.
You can also engage them by hosting activities that are easy to participate in. For example, you can host a photo-sharing contest or a simple poll to generate engagement.
If you find it difficult to plan and manage consistent social engagement activities, you can also hire a marketing agency with a portfolio of successful social campaigns.
Consumers are willing to pay more for greater convenience, and friendly, welcoming experiences. The same PwC study also showed that 65% of U.S. consumers find positive experiences with a brand to be more influential than great marketing.
AI can help you offer better customer experiences through seamless communications, 24/7 customer support, omnichannel experiences, and personalized messaging. This can, in turn, help you build and nurture customer loyalty and boost your retention rate.
6. Offer Dynamic Pricing
Did you know that consumers value price more than personalization?
Think I’m exaggerating?
See for yourself:
So, how can AI help you offer great prices and deals to your customers?
Using AI can help you strike a balance between making a profit and offering fair prices to customers with self-learning algorithms.
AI-powered tools can help you analyze pricing scenarios, past transactions, contextual data, and competitor prices. You can use these insights to gauge the willingness of customers to pay a certain amount for a specific product.
You can then determine if you’ve overpriced or underpriced your products. AI solutions can help you predict product prices that are likely to drive more sales.
Offering products at reasonable prices can also help you build loyalty.
7. Incorporate Self-Service Options
Do customers have to reach out to your support team for all inquiries and issues?
Why don’t you make it easier for them to find resolutions to basic issues?
You may be wondering if that’s even possible.
Of course it’s possible.
You can easily start a blog with a FAQ section or Help section to provide answers to commonly asked questions. You can also introduce a self-service portal or forum where customers can get instant resolutions on their own.
You can use AI solutions to help customers find the information they need.
When a customer wants to learn about a procedure or process, your AI chatbot can redirect them to a specific link of the FAQ section, blog post, or discussion thread that answers their question.
This way, your customers can learn more on their own and will not have to call or email your support team for further information.
However, there’s a catch:
Articles on the self-service portal should offer value. They should answer all related questions that the customer may have. They should be insightful articles that can help resolve the customer’s problem.
If you provide value through self-service solutions, this can help consumers save time and have good experiences with your brand. This, in turn, can help you enhance customer loyalty and increase your retention rate.
Are You Ready to Nurture Customer Loyalty with AI?
If used correctly, AI can help you build and nurture customer loyalty by giving them what they need.
AI-powered solutions can help you get real-time feedback that can help you provide immediate solutions to resolve issues. You can offer exceptional customer experiences, provide relevant offers and deals, and build loyalty.
That’s why implementing AI is good for your business’ growth.
Do you have any questions about how to use AI solutions to enhance customer loyalty? Let me know in the comments section below nurturing customer loyalty by gathering knowledge.