4 Reasons Why AI Is the Best Move in Customer Loyalty Right Now

As many industries, including e-commerce and enterprise tech, move more towards artificial intelligence and machine learning (AI/ML), you might be wondering about their future place within marketing and customer loyalty. If you are intrigued by the possibilities of utilising the power of AI within your marketing stack, keep reading. Let us show you that the best time for AI in customer loyalty is now. Here are four important reasons why.


Smart and improved segmentation

Are you tired of constantly re-analysing your customer segments and their individual needs? The good news is that you can get tech to help you with that! AI algorithms can be used within your CRM and customer loyalty efforts to optimise your customer segmentation.


Technologies like AI are designed to constantly learn from new impulses, such as transactions, email click-through rates and reward redemption rates. They can learn from every event and automatically place your loyalty program users into segments based on current customer lifecycle stages, demographics and much more.


Where the power of AI really comes into play is when predicting users’ movement between their incremental life cycle stages. It’s kind of like seeing into the future but with actionables for your marketing department.


Predicting customer churn

Following on from the previous point, the true glory of AI in customer loyalty lies within predicting customer churn. Using machine learning algorithms, the system can predict the probability of each individual customer to churn. As a result, this gives your company the prime opportunity to only focus on the most profitable customers and maximise the ROI of your marketing and loyalty efforts.


Considering it is nearly impossible to win a lost customer back, this is a crucial ability for any company. Not to mention avoiding the repercussions of a potential detractor spreading unsatisfied feedback to more potential customers.

AI customer insight


Greater personalisation

Did you know that 72% of consumers will only interact with personalised brand messaging? As consumers increasingly move their activities online, the focus on personalisation has been evident. This is due to individuals being flooded with (mostly generic) digital messaging from brands, creating a communications fatigue. In 2021, if you don’t personalise your messaging, you have no chance for success.


With such an emphasis on understanding customers’ wants, needs and preferences, AI presents itself as an extraordinary opportunity. This is particularly true within customer relationship management (CRM) and customer loyalty.


With deeper understanding of customers and customer segments, AI can be used to suggest personalised offers that will resonate with the targeted individuals. Using the power of deep learning, you don’t need to invest in entire customer analytics departments. Move with the time and utilise AI instead! In the long-term, you will save money and see better return on investment. This is because greater personalisation leads to improved customer experience, which in turn produces higher revenue and CLV.


Supercharge your campaigns with AI

Finally, you can make thousands of automated and personalised interventions across an entire customer base at an aggregate level with AI. This means that you can supercharge your marketing campaigns while focusing activity on a specific objective.


The objectives can range from cross-selling and up-selling in order to increase customer lifetime value (CLV) to retaining a customer likely to churn. No matter your goals, insights from AI modelling can be gathered and used significantly faster than any data processed by humans. Hence, AI can give you the boost that you need to get ahead of your competition and win over your customers. This should be a good enough reason especially now that brand innovation is forced to an all-time-high and e-commerce competitiveness is through the roof (read more here).

AI predicting customer churn


How do you feel about the use of AI in your business? Have we persuaded you about the power of AI in customer loyalty?


Here at White Label Loyalty, we have been working on an AI module behind the scenes. We made sure that the technology that we develop is at the forefront of innovation when it comes to AI. Naturally, our loyalty AI module has all the above capabilities built-in and much more. We have a very exciting announcement coming soon so stay tuned and watch our socials! Don’t forget to get in touch if you would like to be an early adopter of cutting-edge technologies within loyalty programs and loyalty marketing.



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Kristyna Efferoth

Kristyna Efferoth

Marketing Manager

Kristyna is our Marketing Manager. She helps White Label Loyalty reach the right businesses in need of a loyalty program and helps our clients' programs reach their full potential. She loves sharing her varied experience in marketing and loyalty by writing helpful resources on the blog from time to time for all loyalty novices and aficionados alike.

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White Label Loyalty
Artificial Intelligence
Machine Learning