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AI in Loyalty Marketing and Loyalty Programs

Charles Ehredt, CEO Currency Alliance, shares his latest thoughts on this hot topic

Artificial Intelligence is on the minds of marketers - strike that – all business people as we build momentum in 2023. There is unsatiated intellectual curiosity on this topic as all of us try to understand the impact it will have on our business and to what extent this technology may displace the tools and resources that are core to our business today.

Nik Laming, CLMP™ demonstrated one potential impact of AI on the Loyalty Practitioner market by querying OpenAI Chat GPT with the question “What are the top 10 trends for loyalty programs in 2023 from the perspective of a service provider to the industry?” Nik published the results of the query on this LinkedIn post and sparked a lively discussion on the validity of the list.

Many commenters noted that the Chat GPT tool returns results based on data accumulated through year-end 2021, hence the top 10 trends seemed dated to most. Nik’s experiment demonstrated the speed at which an AI tool can gather information. Yes, it must be interpreted and updated as needed. But there is certainly a time-saving impact from AI that will benefit many of us.

Fortunately, we don’t envision a brand being able to query for “what’s my best loyalty strategy” and getting a result that stands independent of human interaction. We say “fortunately” as most of our audience would need to reimagine their careers if a machine could create and implement loyalty strategy.

The real potential for Artificial Intelligence for Customer Loyalty lies in more significant areas of work. This article authored by Chuck Ehredt, CEO Currency Alliance, covers the key opportunities for AI in loyalty – and more widely in the travel and retail sectors. These opportunities are largely in four key areas:

  • Inventory, pricing & promotions
  • Customer insight and personalization
  • Making loyalty mechanics more efficient and effective
  • Problem solving & prevention

As chuck shares, Progress in artificial intelligence for each of these areas has been constrained by available technology until the past 6-12 months. Legacy technology constraints can still impede progress, but most companies have modernized their tech stack sufficiently in the past three years, meaning legacy systems are no longer the significant roadblock they were in the past.

This is a solid in-depth examination of how AI can benefit Customer Loyalty and we strongly encourage you to read Chuck’s article.