Collinson jointly with Salesforce published a deep dive into uses of AI in loyalty.
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Collinson jointly with Salesforce published a deep dive into uses of AI in loyalty.
An elementary grasp of Artificial Intelligence (AI) We’re now in the era of AI, and its influence is rapidly pervading our daily routines! Kids are leveraging tools like Chat GPT to deepen their understanding of school subjects, from exploring Shakespearean themes such as poverty or race to grasping the intricacies of electron behavior, even to generating computer code.
We observe that consumers are also eyeing this technology, seeking ways to capitalize on the opportunities it presents. Surprisingly, 56% have already begun, indicating that nearly half are falling behind.
The Evolution of AI: Before delving into how AI can revolutionize loyalty programs, let’s explore its development across four pivotal waves:
Predictive: These AI systems make informed predictions based on existing data, like NBA (Next Best Action) engines.
Detailed insights into these waves and their application are provided in Appendices 1, 2, and 3 of this document. These models can be integrated into your CRM/loyalty solution to yield relevant information and actions.
Employing AI in your CRM/Loyalty Platform necessitates linking data sources with pertinent AI models and configuring defined inputs and outputs.
For instance:
- Pre-built features like “Next Best Action”
- Insightful Analytics Dashboards
- Automated workflows for task optimization
The Shifting Landscape of CRM and Loyalty: As customer expectations surge, businesses face the challenge of delivering swift, consistent, and personalized interactions. Customers demand exceptional products and services and gravitate towards brands that meet these expectations. Hence, it’s crucial for businesses to harness generative AI to enhance seamless customer experiences.
Rethinking Priorities: External factors such as inflation and technological advancements prompt individuals to reassess their priorities, influencing their spending behaviors. However, customers aren’t solely fixated on price; product quality and customer experience remain paramount.
The Fear of Rising Customer Expectations: Growing customer expectations loom large as both an opportunity and a threat, particularly for loyalty programs. Brands must swiftly adapt to remain competitive.
- The Role of Personalization: Personalization is at the heart of modern customer engagement, with customers expecting tailored experiences. However, many feel overlooked by companies, particularly in smaller transactions.
- Data and Technology: Customers understand the value of data in delivering personalized experiences but expect reciprocity. Advancements like generative AI raise the bar for service and personalization standards.
- Barriers to AI Adoption: Low data readiness poses a significant hurdle for businesses considering AI adoption, surpassing concerns about privacy and regulations.
- The Challenge of Integrated Customer Experiences: Inconsistencies in data across channels hinder seamless customer experiences, leading to fragmented interactions and disjointed customer profiles.
- The Path Forward: Achieving a consolidated and timely customer data solution is imperative for effective AI implementation.
- Mutual Benefits of Loyalty and AI: Loyalty management solutions play a vital role in enhancing data quality, customer engagement, and personalization. Conversely, AI technologies bolster loyalty programs through personalized rewards, predictive analytics, and fraud detection, among other capabilities.
Conclusion: AI technologies are accessible and can be seamlessly integrated into loyalty management. Leveraging AI and loyalty programs can yield significant business benefits, including enhanced customer satisfaction, greater personalization, and improved ROI.
Source: Collinson
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