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Insight: How AI fuels loyalty marketing


Over at Entrepreneur, contributor Ido Mart details the success of artificial intelligence (AI) applications in improving mobile offer response rates. The key takeaway: AI outperforms human-triggered messages by both improving personalisation and facilitating "just-in-time" marketing messages.

Mart drops some impressive stats (albeit conveniently taken from his own company Flok's engagement software platform) detailing how AI is outperforming human-triggered messaging: in Q1 2016, Flok saw contextual, AI-driven push messages perform 3.8 times better than human-triggered offers; AI-triggered visit reminders performed 1.6 times better than humans; and requests for online review sent by AI performed more than five times better.

How does AI perform so well at personalisation? Money quote from Mart:

"How is AI besting humans in managing relationships? Message timing and context are common themes across all AI engagements. Push messaging allows businesses to perfectly time personalised messages, which could lead to better engagement rates. Visits for store reminders often are proximity-based, making them more contextually relevant than a static message."

While AI and machine learning are becoming de rigueur for the most sophisticated loyalty marketers, bear in mind the old loyalty marketer's mantra: technology enables, but imagination wins. As AI tools continue to replace human-driven messaging, those marketers who expend the most effort in using the tools to build sustainable, profitable, long-term relationships with their best customers will emerge the winners in the battle for customer loyalty. Every tool, no matter how sophisticated, requires a skilled hand to wield it.

Read Mart's article here.

-Rick Ferguson


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http://www.entrepreneur.com