AI is the next big thing in Loyalty. Learn how it works for your brand from here. -
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Imagine machines that could literally learn, reason, solve problems and plan like humans!
This is what Artificial Intelligence does – computers that can think- process information as we do. They just don’t simply mimic us, while AI operates, it processes abundant information in a matter of milliseconds and proposes accurate solutions. These results are beyond the limitations of human errors and biases. This is the very reason why loyalty companies worldwide are implementing AI or machine learning in their algorithms to enhance customer experience and engagement.

How does AI change the customer’s attitude towards loyalty programs?

Machine learning creates algorithms that detect patterns from a large set of data and based on the conclusion it derives, it can predict possibilities and outcomes that apply for the future. Utilizing this aspect, loyalty companies are planning to employ AI to carry out rewards and redemption in compliance with customer shopping behavior.

With the help of AI and based on the shopping pattern of the customer, only those gift products and benefits that a particular customer requires or longs for will be pitched to them.

This enhances customer engagement with loyalty programs. If a customer regularly burns his or her points for a benefit or gift, then suggestions displayed to him will be related to that item. This keeps customers in a loyalty program for long as they will be constantly logging in to see more updates. This also helps to segregate customers based on their redemption behavior, points banked, points redeemed, redemption trends followed by various age groups, and a lot more.

AI helps out in discovering and banning fraud redemptions:

The reality is that even the highly secured loyalty programs are not free from fraudulent activities. Hackers are seeing pretty big potential and opportunity in unburnt loyalty points spread across customer wallets. They are literally money or carry equivalent value. Thus, finding a way to a customer’s loyalty account by hacking and later redeeming points on behalf of the customer’s identity is the current threatening situation many loyalty companies face and it is real!!!

AI will be the savior. It can detect a real customer from fraud ones based on individual data collected. Not only identification but AI algorithms can also be alerted to block such doubtful redemptions.

New possibilities of AI with loyalty programs are being researched extensively by companies around the world. The new era of AI-powered loyalty programs will impress customers and engage them more. It will be secure and sanguine, and it will be promising.

To get the latest updates about loyalty programs, or if you are planning to create a rewarding campaign for your brand, connect with us talktous@loylt.works.

Author: Prashanth Maxim.

Title: CEO & Founder Director of Loyltwo3ks Pvt Limited.

Linkedin: https://www.linkedin.com/in/prashanthmaximm/

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