Artificial Intelligence in loyalty programs: why and how to use it, advantages, benefits
With the emergence of disruptive technologies, it's common to have doubts or even fear about the impact they could have, as happened with the arrival of the first computers, the Internet or smartphones. In recent months, we have seen another important turning point in the history of humanity and its relationship with technology: the advent of Artificial Intelligence .
Of course, A.I.'s have been developed and improved for a long time. The difference is that their use is no longer restricted to large scientific centers and various platforms can be widely accessed by ordinary citizens - it's very likely that you, for example, have already asked ChatGPT at least one question.
However, as with other major technologies, the popularization of the use of Artificial Intelligence has raised a number of questions: Will technology replace human labor? Will company departments disappear? Is Artificial Intelligence our ally or our rival?
These are complex questions, especially as the technology is relatively new. But when it comes to loyalty and customer relations, we're ready to explain what the impacts of A.I. are and how you can prepare to stay ahead in the market!
In recent years, A.I. has already been used by Marketing, Loyalty and CRM professionals, mainly in automation software and chatbots. Now, with so many tools at your disposal, you have to be careful when choosing which ones to use or not, which ones will be facilitators or obstacles, which ones will amplify human talent or which ones will diminish your team's productivity.
But to achieve this insight, you need to put the customer at the center of your strategy.
Companies that rush to use A.I. without a customer-centric vision, just to cut costs, are making a big mistake. The right way forward is to adopt Artificial Intelligence to improve your customer's life!
For Harvard, the companies that will be most successful in the future are those that are using Artificial Intelligence to:
- Connecting data and insights from different sources
- Rethinking the customer experience, creating a frictionless journey
- Activate different experiences on multiple channels
- Reach each consumer in a personalized way
- Constantly carry out tests, seeking innovation and new business
An interesting case is that of a multinational investment bank that is applying A.I. to help its consultants serve clients in a highly personalized way: combining search tools and content creation, Artificial Intelligence receives a question from the consultant, consults a vast database and offers the most appropriate and customized response to the client's needs .
Artificial Intelligence offers countless possibilities for companies wishing to transform the way they relate to customers. The perception of executives, at least, is very positive about this - the main expectations for the use of A.I. in companies revolve around the relationship between the brand and its consumers. According to IBM:
- 74% of executives say that A.I. will profoundly transform Customer Experience strategies
- 74% of executives say that A.I. will change the way customers perceive their brands
Benefits of using A.I. in loyalty and customer relationship programs
According to IBM, these are the main benefits that companies seek with the use of A.I.:
Top 5 growth benefits
- Deepening consumer engagement
- Increased consumer satisfaction
- Increased revenue
- Increased brand loyalty
- Opportunity to create new products and services
Top 5 operational benefits
- Improved consumer insights
- Increased efficiency
- Improved decision-making
- Reducing costs
- Increased employee satisfaction
Of course, everyone expects positive benefits from using Artificial Intelligence, but in order for this to happen, you need to have a realistic vision and be prepared for A.I. to be your true ally in loyalty and customer relations:
- People are people
One of the biggest mistakes companies can make when implementing Artificial Intelligence is to consider it more important than the talent of their team. To get the best out of the technology, don't forget the human essence - a prepared team will be the key to monitoring and calibrating the use of A.I., generating the best customer experience.
- Protection and privacy
Loyalty programs allow companies to obtain a large amount of data about customers and their consumption behavior. To guarantee the privacy of this data, it is necessary to have well-defined cybersecurity processes that prevent possible leaks and allow Artificial Intelligence to work in a way that complies with current legislation.
- Insight, insights, insights!
Gaining insights becomes faster and more effective with the use of Artificial Intelligence. As well as providing a basis for decision-making, it allows new opportunities to be identified in real time. Thus, it is possible to analyze behaviors and interactions in order to communicate in a personalized way with customers at the times and on the channels when they are most likely to engage with the brand.
- Strategy, not software
When Artificial Intelligence is viewed simply as a technology, it can be seen by employees as just a bureaucratic process in the middle of the road. Therefore, it is essential that A.I. is approached as a key strategy for business development, with objectives and goals to be achieved by the team. And at the heart of this strategy must be the customer!
Loyalty 2024 eBook
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In this exclusive and free material, you will learn about:
- Use of Artificial Intelligence
- Offering experiences
- Rise of Generation Z
- Consumer of the future
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