How the AI Boom is Going to Shape Customer Loyalty in the Next Decade

how the ai boom is going to shape customer loyalty in the next decade

AI and Business

There may be a lot of misinformation about the remarkably complex world of Artificial Intelligence, but one thing seems to be certain: Artificial Intelligence will radically change and shape how businesses get to own customer loyalty.

By checking this AI article, you will get to understand what is Artificial Intelligence and what is customer loyalty, while also getting to read about some powerful AI and customer loyalty facts that you should get to know as soon as possible.

What is Artificial Intelligence?

Artificial Intelligence (AI) is basically the development and theory behind computer systems which are effectively able to perform tasks that would normally require human intelligence. These tasks can range from speech recognition, translation between languages, decision-making, and even visual perception.

In other words, AI enables machines to actually learn from experience, perform human-like endeavors, and adapt to new ideas and inputs every single day. In a practical sense, this tech relies on deep learning as well as natural language processing.

By using these hyper-advanced technologies, computers can effectively be trained to undertake highly-specific tasks that they accomplish by processing a wealth of analytical data.

Applications of Artificial Intelligence

Even though it seems that we’ve only heard about this topic in the past 3 years, the term was actually coined in 1956. With the passage of time, it ceased to be a creative name and became a real subject that garners attention, demands study, and can shape and change industries. Thanks to improvements in computing storage and power, increased data volumes, and the power of mighty advanced algorithms, AI has now become part of the real-life lexicon.

But what are some of the applications of Artificial Intelligence?

Here’s a list of AI applications that the world uses today.


Amazon’s smart home hub proves its worth by being able to decipher patterns of speech from virtually anywhere in a room, helping people canvass through the internet to get the answers they need.


Elon Musk’s favorite child has tremendous predictive capabilities, tech power, and self-driving features.


A company that lives and breathes this tech, Boxever improves the customer experience in the travel realm, delivering fun micro-moments that use this tech to engage with clients.


With its extraordinarily accurate predictive abilities that are based on a customer’s reactions to movies and TV shows, Netflix is already making use of AI power. As its huge dataset gets bigger and bigger, Netflix will continue to use this tremendous advancement to allow customers to take advantage of a top-notch entertainment experience.

What is Customer Loyalty?

Customer loyalty is actually the result of offering a regularly positive perceived value and a wonderful emotional experience regarding the utilization of products or services. This is something that all enterprises should get to earn.

Why? Because the idea behind creating a profitable business is to actually have an array of different customers that not only buy a product once but are so connected to and enthralled by the company or brand that they actually return and make repeat purchases.

Loyal clients get to spend more and convert more with the brand they believe they are most loyal to. Moreover, loyal customers tend to speak about a brand to their friends, allowing word-of-mouth marketing to become boosted, increasing sales through the blessing of free referrals.

Here are some customer loyalty stats that marketers should become acquainted with:

  • In the United States, 40% of online shopping profits are driven by repeat clients, who actually represent only about 8% of the total number of website visitors
  • Increasing customer retention by a margin of only 5% can actually boost profits by 95%
  • 57% of marketing leaders plan to increase their spending on customer loyalty programs
  • Super-engaged clients purchase 90% more often and spend 60% more per each transaction
  • 80% of clients are ready to spend more money if it ensures them a better customer experience

Now that we’ve seen what is AI, how Artificial Intelligence is already being used in the real world, what is customer loyalty, and how important is customer loyalty, it’s time to understand how these two aspects will come together to ensure you can increase profits and grow your business in the years to come.

5 Key Facts About AI and Customer Loyalty

1. AI Personalizes the Customer Experience

AI systems allow you to change your incredible websites and cater them to a user’s specific needs. This hyper-personalized experience not only helps make navigation effortless but also drives engagement, allowing for a unique user experience that takes the customer’s mood, personality, and needs into account.

By taking advantage of its real-life learning tech, AI technology is able to ascertain a user’s behavioral patterns, predict the user’s needs, understand what their preferences are, and shape a website according to that detailed info. This means that website owners can now be able to grab the chance to create micro-moments, optimizing the user experience and delivering special little engagement-oriented gems that allow customers to feel recognized, appreciated, and loved.

Personalization with AI will really become one of the top customer loyalty magnets in the years to come and will mean CRM systems must be able to evolve quickly.

2. AI Improves Communication

By using machine learning and natural language processing, this impeccable tech can actually be utilized to improve product discoverability, ensure you can target more accurately than ever before, and produce a better customer experience throughout the funnel. This ability to allow consumers to communicate their specific requests to a machine will increase the sense of immediacy and instant gratification.

Customers won’t have to wait in line, waste their time, and think about going to another website to get their product: they will only have to communicate and get what they need when they need it. Natural language processing can really translate the beautifully spoken word, understand degrees and variations, and even allow a virtual assistant such as Siri to give customers human-like pieces of concrete advice.

With additional cognitive methods such as predictive modeling and deep learning now becoming more widespread, the communication abilities of Artificial Intelligence can only improve.

Through that evolution, these systems will be able to create unsurpassed techniques that craft more advanced algorithms and precise models which allow the machine to get even better at predicting possible outcomes, learning through adaptation and experience, and catering a powerful customer journey that will ensure customer retention and loyalty become a reality.

3. AI Helps Identify What the Customer Loves

Everyone knows that the marketing pros of today are already all over the fantastic powers of predictive analytics and Big Data, accumulating purchase patterns to understand the causes of seasonal variations, surges, drops, and anomalies. Now, with data sets getting to become bigger every single day, you will have a whole new world of customer-driven possibilities at your disposal.

This will allow you to identify what the customers love, recommending similar products that actually make sense for that specific customer - unlike what happens nowadays, due to the ineffective wave of deceptive cookies. In the future, as the customer browses through a website and decides to purchase a specific product, personalization will become ever more powerful, learning with each passing day, rookie mistake, and eager assumption.

Indeed, different algorithms will be able to generate customized recommendations and give the customers the best offers they need. On the other hand, as these mechanisms evolve, customers will also feel much more at ease offering suggestions and recommendations for product improvement, since they will also know that the advanced tech is listening carefully, gathering data, and learning through the user’s comments, suggestions, and actions.

4. AI Allows Companies to Use Dynamic Pricing

Daily dynamic pricing fluctuations are a bane for most business leaders. But with AI, you will have the chance to take advantage of real-time data you can use to calibrate the price to optimized perfection. It will effectively allow you to increase customer loyalty by giving you a concrete idea of what the price should be at each specific window of time.

AI will also be able to analyze customer intent info, getting to understand the price point the client will actually be ready to pay. This ability to fine-tune pricing will trigger a deep personalization, allowing different companies to not only increase revenue but also create unflagging customer loyalty.

With a more natural and intuitive ability, AI will get ready to learn about intent, customer behavior patterns, and purchasing variations, becoming able to adjust prices in an optimal way. By taking the human mindset out of the equation, pricing will become dependent on actual data and the ability that these systems have of always adapting prices to maximize revenue while never letting go of the all-important customer satisfaction.

5. AI Offers Unparalleled Customer Insights

Images, videos, Twitter feeds, photographically perfect Instagram updates, and those long-winded Facebook posts about political upheaval in Northeastern Jamaica. Users keep on flooding the web with their thoughts, actions, and ideas.

They keep telling these technological masterpieces where they live, how they live, where they vote, and how they eat. This means that this tech can now analyze all these pithy data and provide companies with finely-crafted and precise insights into customer interests and lifestyles.

AI can actually teach any mobile device to analyze shared images, videos, and updates, ensuring companies get juicy insights into customer desires, likes, dislikes, and intentions. This ability to take advantage of customer-created data will obviously allow you to use AI to improve product development, craft better marketing campaigns, produce more precise advertising and personalize the experience of each specific user taking their thoughts, ideas, reactions, likes, and comments into account.

It may seem Orwellian to know that we live in a world where any shared thoughts and desires can be dissected, taken apart, and analyzed. However, this will be one of the most relevant advantages of AI.

By using AI’s data-draining powers, you can get tremendous leverage, offer uniquely crafted user experiences, drive sales, get phenomenal retention, and become the master of customer loyalty in the 21st century.

A Gigantic AI-Powered Gift

Artificial Intelligence seems to be the gift that keeps on giving, allowing companies to take massive advantage of personalized customer experiences, improved communication, customer desire, dynamic pricing, and super-detailed customer insights.

By using AI to the best of its deep learning and predictive modeling ability, companies from all over the world will get ready to improve their customer experience, retain more customers, and use customer loyalty to maximize their revenue like never before.