Filip Zajdel – Business Development Manager, Sparta Loyalty
Analytics with AI – the key to loyalty success
Artificial intelligence, machine learning, data analytics. These are the terms that have become an inseparable part of everyday life. They make it easier for companies to make business decisions and plan activities, and they guarantee us a better shopping experience, increasing the revenues of stores and enterprises and greater brand loyalty. It seems all well and true but in some circumstances, businesses’ customer bases are shrouded in mystery, due to privacy regulations and a lack of a sophisticated customer data system. But let’s say you can understand your customer base without revealing their personal identity? What are the benefits of building loyalty programs whose members are no longer unknown?
A well-implemented loyalty program allows the operator to know where 70% of its sales are coming from by demographic and of course, up to 80% of the transactions that previously eluded them, are revealed. Thanks to the implementation of a loyalty program, the system is able to respond to the needs of consumers on an ongoing basis and inform them about changes or new solutions. Furthermore, the business can use the collected data to build an even better shopping experience. Note, that this is only possible when the program operator carefully monitors each touchpoint and analyzes the entire path of the consumer – from presenting the offer to the moment when the participant becomes a member of the loyalty program.
Trends speak the language of AI
We have just returned from Smart Retail Tech Expo in London, one of the most important trade fairs in the retail industry, attended primarily by customer service companies. What did we pay attention to? The main thing we paid attention to is that in our current epoch the most important trend in loyalty is the use of data analytics supported by artificial intelligence. The price is not just processing and analyzing the data, but predicting what a specific client needs at a specific moment and what he will expect in the near future, depending on the weather, place of residence and lifestyle.
Artificial intelligence understands the customer and adjusts appropriate algorithms for them.
How can artificial intelligence help? Among other things, in managing the churn rate, which determines the measure of customers resigning from our services. AI allows them to detect and react appropriately before it is too late and they leave for the competition. For this, it uses, among others historical or geographic data.
The customer retention module is also worth its weight in gold, as it automatically analyzes customer and transaction data. It helps to increase revenues by proposing the most suitable products or services and up-sell / co-sell opportunities for individuals.
Artificial intelligence also supports sales forecasting, enabling wholesalers to make informed business decisions and determine the long-term development of the business. By simplifying forecasting and increasing accuracy, sales teams have better information and more time, allowing them to fully focus on customer needs.
Marketing personalization also benefits from the introduction of AI. Here I mean tailored newsletters, advertisements and offers. This area of customer-oriented marketing is growing the fastest today, which we saw at the Smart Retail Tech Expo in London.
Dedicated = analyzed
It is worth realizing that all this will not work out until we combine the loyalty system with the POS (Point of Sale) area, from which all sales flow, and e-commerce in the model of omnichannel programs. This is why a good program management system is so important.
Good, i.e. one that efficiently integrates individual points and thus creates an integrated, unified, automated and real-time ecosystem. We will not find such mechanisms in the loyalty programs available in the SAAS model, of which more and more are appearing on the market at the moment.
More and more salespeople and marketers are using AI to build real customer relationships based on real-time metrics determined for each consumer. In my opinion, however, no algorithm can 100% replace a living human. That is why artificial intelligence is a technology that works best when it is combined with human knowledge and analysis. Only such an analytical duo is effective and makes it easier to achieve the set goals.
Original article:
https://magazyn.brandsit.pl/analityka-z-ai-klucz-do-sukcesu-lojalnosci/
