AI for Loyalty Programs and Consumer Promotions

A well-executed loyalty program may be a game changer when building long-term consumer relationships and driving revenue development. Companies now have an unparalleled potential to supercharge their loyalty programs and promotions, thanks to the rise of Artificial Intelligence (AI).

This blog post outlines the potential of artificial intelligence in developing dynamic loyalty programs, maximizing promotional activities, and providing superior customer service.

Examples of AI in Marketing (Source: Smart Insights)

The Basics of AI and Loyalty Programs

Artificial intelligence (AI) is when computers do tasks that usually need human intelligence. They can learn from lots of info, spot patterns, and make clever decisions without direct instructions.

Loyalty programs are like innovative plans to give prizes to customers who keep buying and being part of things. Good ones help friendships with customers, make them want to keep coming back, and even tell others, which makes them super valuable in the long run.

Source: Salesforce

How Does AI Enhance Loyalty Programs?

Programmatic Advertising

Imagine if a computer could make your shopping experience feel like it was made just for you! That’s what happens when Artificial Intelligence (AI) teams up with loyalty programs. Businesses use AI to look at a lot of info about you, like what you buy, where you live, and even how you click around online.

Then, like magic, AI figures out the perfect rewards that will excite you. It’s like getting gifts that match exactly what you like! This special treatment makes you happy and makes you want to stick with that brand and feel like you’re part of something special. It’s like having a secret club just for you! This clever computer stuff is what experts call “Programmatic Advertising,” and it’s like giving you a VIP pass to an awesome shopping world.

Real-Time Engagement

Guess what? AI also helps companies talk to you right when you’re interested!

Imagine you’re checking out a cool brand online, and suddenly, a friendly message pops up. It’s not a real person but an AI-powered smart computer program. It knows what you like and suggests special deals, discounts, or cool stuff you might want to buy. It’s like having a shopping buddy who knows you well!

This quick and friendly interaction makes shopping super smooth and fun. Plus, it makes you want to keep returning for more, like hanging out with a helpful friend.

Predictive Analytics

AI is like a fortune teller for businesses! It can predict what you might do next.

By looking at how you’ve shopped before, AI can guess if you might stop buying from a brand or if you’re likely to buy even more. It’s like magic math that helps companies understand what you want.

And here’s the cool part: AI can even find new people who would like a brand, like matchmaking for shopping!

Companies that have Leveraged AI in Loyalty Programs and Promotions

Artificial intelligence is the development of computer systems that can do tasks that normally require human intelligence. Without explicit programming, AI systems can analyze enormous amounts of data, learn from patterns, and AI-driven customer Segmentation.

Below are companies that have leveraged AI in digital marketing:

Whole Foods

Up to 36% of customers think businesses should try to provide more individualized service; this number jumps to 43% for households with annual incomes over $100,000. However, only 12% of retail firms believe they effectively provide customers with individualized experiences.

Grocery behemoth, Whole Foods, has opened 24 “Just Walk Out” locations throughout the US to solve this apparent expectation gap.

These stores, covered in sensors and cameras, enable customers to pick up their purchases and pay without pausing at the cashier. Instead, AI is used to track and charge orders.

Naturally, Just Walk Out’s “leave without paying” component has garnered all the attention. However, from a marketing standpoint, data collection is the most intriguing aspect of the plan.

Because every transaction is traced down to the person, Whole Foods can use AI to examine shopping patterns, spot trends, and forecast future behaviour.

This project also paves the way for hyper-personalized marketing; for example, a merchant may provide a consumer with a coupon for other Italian-themed ingredients if they frequently purchase pasta, basil, and canned tomatoes.

HubSpot agency partner: Imagine Business Development

By 2025, the average person would receive more than 375 emails daily, up from the present average of roughly 350. Wouldn’t it be great to send emails when certain recipients are most likely to open them amid all the noise?

Naturally, such a level of personalization would be impossible for people to achieve if your marketing list had more than a few dozen names. However, it can be easily managed by AI tools.

For instance, the Seventh Sense AI technology, which employs artificial intelligence to optimize and personalize email delivery times for every user in a database, was used by HubSpot agency partner Imagine Business Development.

In other words, if 9:30 am is the time that one person is most likely to open an email, that’s when they’ll receive it.

Email Send Time Optimization Using AI (Source: Hubspot)

CocaCola

In contrast to other companies, Coca-Cola established its own AI platform built specifically for the company by OpenAI and Bain & Company. Other brands might be content to use current AI technology in their marketing.

The platform, called “Create Real Magic,” combines DALL-E, which transforms text prompts into visuals, with GPT-4, which creates text that resembles human speech from search engine queries.

In the ensuing promotion, Coca-Cola invited consumers to design their own digital artwork using various of the company’s trademarked elements, including its unique contour bottle and script logo.

The greatest works were downloaded and submitted by artists, and the best ones were displayed on digital billboards in Piccadilly Circus and Times Square in London and New York, respectively.

To see the full campaign, click here

Alibaba

Alibaba, a major retailer, created a real “FashionAI” store in Hong Kong to improve the efficiency of the fashion retail process. Alibaba outfitted its stores with smart mirrors that show apparel information, recommend matching items, and clever garment tags that recognize when an item is handled. Alibaba also intends to include a virtual wardrobe app in the physical store, enabling consumers to view the clothes they tried on there.

Alibaba uses technology as a reaction to changing consumer expectations. According to a National Retail Federation survey, 80% of consumers feel that retail technologies and innovations have improved their online shopping experience, while 66% say the same about brick-and-mortar retail.

Chatbox

Chatbot usage increased by 92% between 2019 and 2020, according to Drift’s most recent State of Conversational Marketing research. This is a quicker rate of growth than any other channel for brand communication.

Early adopters of AI include the cosmetics company Sephora. In 2017, they started offering Kik beauty tips via a chatbot.

With a questionnaire about their product preferences as a starting point, Sephora’s chatbot assisted customers in making decisions. Product preferences are advantageous in the cosmetics sector, where there are many possibilities, and it can be challenging to buy without trying first. With the help of its chatbot, Sephora learned a lot and received enough interest in the trial that it decided to develop more chatbots on Messenger.

Sephora Chatbot Created Using AI (Source: Clickz)

AI Platforms to Visit for Marketing Ideas

Phrasee

Ever felt stuck trying to cook up words that make people say, “Wow!”? Meet Phrasee, your AI-powered wordsmith for marketing! Think of it as a genius assistant that whips up attention-grabbing and persuasive marketing messages. In the wild marketing world, saying the right thing can make all the difference. That’s where Phrasee steps in – imagine needing catchy email titles, social media posts that sizzle, or ads that pack a punch. Phrasee’s super-smart AI dives into successful campaigns’ secrets, learns their language tricks, and creates captivating copy that hooks your audience. It’s like having a secret recipe for messages that read like a dream and get folks clicking, engaging, and buying. With Phrasee on your side, you’re serving up words that work wonders!

ChatGPT

Imagine your website having a magical helper who talks like a friendly human. That’s ChatGPT – your trusty AI sidekick for supercharged customer chats! Picture a potential customer checking out your goodies online, curious about this and that. Instead of waiting for answers, ChatGPT swoops in like a hero, giving instant responses that make the shopper’s day.

Replika

Have you ever wished you had an AI friend who chats just like you? Meet Replika – your personalized chat guru! Think of it as an AI friend who gets your personality and talks like you. Replika becomes your secret weapon for building strong customer bonds in marketing land. Imagine sending messages to customers that feel like they’re from a friend, tailored to their unique style. Replika dives into past chats, picks up on the vibes, and crafts messages that hit all the right notes. It’s like having a virtual friend who helps you keep customers happy and loyal. Plus, Replika gathers juicy feedback and insights that help you fine-tune your marketing game in real time.

AI-powered loyalty programs and incentives are changing how businesses interact with customers. Companies can design attractive loyalty programs that inspire consumer loyalty and drive corporate success by harnessing AI’s strengths in personalization, predictive analytics, customer segmentation, and real-time interactions.

Conclusion

Sproxil technology has enabled over 250+ global brands to drive successful consumer promotions and loyalty programs through AI, AR, Chatbots, and other 21st-century technology. For a free consultation on your subsequent campaigns, email [email protected] or click here to book an appointment.