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Artificial intelligence and its ability to research and benchmark has long been in development but, more recently, its strides have been borderline brain-like, particularly in its ability to process and integrate diverse data sources. No longer limited by traditional methods—i.e., those that struggle with unstructured information—, AI excels at deciphering data from multiple sources, from social media posts to open-ended survey responses. This capability is both advanced and reshaping how we approach complex problems to uncover new insights.
Ease, Effectiveness, and Emotion have been identified as the foundation of customer experience (CX) as highlighted by Forrester Research. Each has a significant impact on how people perceive their interactions with a brand. However, what was once a hallmark has become the price of admission. If experiences are not easy, effective, or positive, customers will find alternatives. The next step on the path to customer loyalty is to elevate experiences beyond the basics to help consumers feel that they are part of something special.
There are two heavy hitters dominating the artificial intelligence (AI) applications narrative: 1) tech giants churning out increasingly powerful AI models, and 2) established companies implementingAI into their existing products. A new player is turning heads in boardrooms across industries: AI orchestrators.
Today, the battle for customer loyalty is hyper-competitive and fierce. Even with the number of loyalty memberships and program activity at their highest in 10 years, members are looking for more; they’re choosing brands that provide better, simpler, and more seamless experiences (The Bond Loyalty Report, 2024). As technology simultaneously advances at a breakneck pace, artificial intelligence (AI) is emerging as a game-changing tool for creating personalized experiences that foster deep, lasting customer relationships. But how exactly is AI revolutionizing personalization in loyalty programs, and why should businesses across industries take note?
Discounts have increasingly dominated the path to customer loyalty reshaping how businesses approach customer retention and engagement. This shift is evident across various industries, from retail and hospitality to online services, where discounts are used as primary tools to entice and retain customers. This trend, while beneficial in the short term, has profound implications for the long-term health of loyalty programs and customer relationships.
The appeal of discounts lies in their immediacy and perceived value. For consumers, discounts offer instant gratification and tangible savings, making them highly attractive. Businesses, on the other hand, see discounts as an effective way to drive quick sales, clear inventory, and attract price-sensitive customers. The rise of e-commerce has further fuelled this trend, with flash sales, promo codes, and exclusive online discounts becoming commonplace. This approach is exemplified by events like Black Friday and Cyber Monday, which generate massive sales through deep discounts.
However, the heavy reliance on discounts can undermine the foundational goals of loyalty programs. Traditional loyalty programs aim to build long-term relationships with customers by rewarding repeat purchases and fostering a sense of belonging and appreciation. These programs often use points, tiers, and exclusive perks to create a sense of progression and exclusivity. When discounts overshadow these elements, the focus shifts from long-term engagement to short-term gains.
Content Writer
Content Writer
The financial sector faces unique challenges: broad demographic targeting, homogenous product and service offerings, and a saturated market. Traditional strategies for growth—such as new account acquisition, product innovation, and cost management—are increasingly difficult to leverage in such a competitive and highly regulated space. The question then is this: how can FIs sustainably defend and increase their share of wallet while fending off new, emerging competitors?