Artificial Intelligence is everywhere nowadays, and for companies who know how to use it in myriad ways, this technology is helping to thrive the competition in the age of customer experience and delight. Businesses still looking for effective ways to keep their customers happy should rethink their customer engagement processes and after-sales support. Because with AI, a business can enhance the customer experience and decrease the retention rate at measure.
With fluctuating market trends that appear every minute, it is hard for a business to offer the right product/service that meets the specifications of a customer. And with ever-changing customer needs and demands, it is impossible to identify that one product/service your customer wants. However, it is essential and equally important for a business to understand and discover the vital ways to keep the existing customers even if they are not loyal. Integrating AI techniques to identify repeating customers’ journeys and nurturing relationships with existing customers will eventually lead to rewarding loyal customers. Loyal customers will not only benefit the bottom line of sales but also benefits businesses with network marketing.
AI can help in promoting customer loyalty in many ways, for instance, assisting agents in responding to customer queries quickly and with confidence will automate various activities, drive innovation, and derive higher RoI from investments. Keeping existing customers happy is much more rewarding than acquiring new customers. Artificial Intelligence is one of the great technologies that enable businesses to nurture their customer support with ease. In this article, we’ll explore the top five ways applications of AI for improving customer loyalty programs are scaling growth and helping businesses to improve their overall customer experience.
How Can Artificial Intelligence Improve Your Customer Loyalty?
Using the right mix of AI techniques is always proven to win some loyal customers. However, businesses need to understand and practice AI trends before jumping on to its applications. Even though Artificial Intelligence mirrors human thinking, we have seen many AI systems that are better at outperforming humans in specific tasks. Here below-listed applications of AI are a few examples of how one can integrate AI to improve customer loyalty.
Online virtual customer assistants (Chatbots)
One of the primary factors that drive customer loyalty for any business is a superior customer experience. Organizations often consider in-house customer service centers as an option, so they opt for low-cost traditional third-party services. Which provide unsatisfactory results for both customers and companies.
With AI chatbots, an application interface is personally designed for a specific business purpose to simulate real conversations with human users. It is a one-time investment that reduces the future cost associated with people management and assistance. These pre-described and personalized-smart chatbots increase customer interaction time by solving problems in real-time. Chatbots can resolve 80% of customer problems during their first interaction only which scores extra points for customer experience and increases the chances of customer retention.
Data Harnessing for product innovation
AI has better crunching power than humans. Let your research and development harness the power of AI to extract insights from organizing, processing, and analyzing data sets from multiple sources. AI helps you better understand what your customers want and how you can derive accurate customer insights that can be helpful for your business growth.
AI assistance in personalizing the products/services will not only help to meet your customers’ desires but always empowers your business to explore new market opportunities.
Optimized Research for effective pricing
Pricing is one of the most important and considerable factors for a customer when it is time to make a purchase. So even if you have a spectacular product, if your competitor offers a great price discount, you may lose out on customers. AI supervised self-learning algorithms can suggest optimized prices in real-time to help your business stay profitable, but at the same time, impress customers for buying your product/service without hesitation. These AI algorithms work with mountainous volumes of data and distinct pricing scenarios before they offer pricing suggestions. Predicting competitors’ market pricing and optimizing your pricing will not only retain your existing and new customers, and always helps to increase your loyal customers count.
Predictive insights to attain your customers’ calls
Predictive analytics helps you to understand the needs of your target audience accurately ahead of time. The insights provided helps a business to significantly increase customer loyalty by forecasting reasons to know why a customer is churning out before a sale. Machine learning algorithms can identify the customer’s past buying patterns and estimate the risk of churn and proactively provide personalized retention offers in advance. With these predictions, the company can offer more customized products/services to mitigate all the potential threats that may affect your customers’ journey.
Personalized recommendations for long-lasting individualized customer experiences are only possible through predictive and sentiment analytics. Decoding the existing customer data to understand their sentiments regarding a product/service and personalizing future recommendations by forecasting the consumer requirements can extremely improve customer loyalty.
AI-powered custom loyalty programs
Using AI to digitize traditional loyalty programs can potentially help big brands to make strategic decisions when a customer takes an action. Apart from other AI applications, through custom AI triggers you can tailor your model to meet each of the specified requirements. For instance, leveraging deep learning techniques the models are trained to identify, record, and categorize specific actions across the customers’ journey. Like, views a product, makes a purchase, leaves a review, etc., the deep learning models analyze this information to assess the customer persona according to these demographics. Which in the future helps brands to take necessary decisions for improving customer loyalty at scale.
To enhance the consumer experience, companies spend billions every year. With the implementation of AI technologies, a company can create superior customer experiences and retain them for a longer time. Do you want to leverage AI for your customer support? SoulPage can help you build AI-driven solutions for your business. To know more about SoulPage, contact us.