How AI is Personalizing Customer Experiences through Mobile App Engagement.
The problem with most branded mobile apps today is that they are utilitarian at best. It’s one thing to have a mobile app for your customers to use so they can book an appointment, place an order, or check their loyalty points. It’s an entirely different thing to use that app as a behavioral engagement and personalization tool, which can transform your business.
By incorporating artificial intelligence (AI) into mobile apps, brands can create personalized and unpredictable rewards and experiences that keep customers coming back for more.
Personalization through AI
AI can revolutionize the way brands interact with customers. When incorporated properly, the behavioral analysis which AI can perform provides brands with the ability to create unique personalized experiences and offers. The kind of offers and experiences which are in line with each customer’s motivations. This, in turn, creates an atmosphere for customer behaviors to shift so that they buy and visit more.
By analyzing a customer’s behavioral data such as purchase history, competitive visit frequency, and mobile app browsing behavior, the right AI system—such as the one provided by Lighthouse PE—can leverage customer preferences and anticipate intent. Then it can tailor recommendations and rewards accordingly. This level of personalization can help you outsell your competitors by 20% according to Forrester Research.
Randomization for Surprise and Delight
While personalization is important, it is also crucial to keep customers engaged and excited by offering unexpected rewards and experiences. AI-powered randomization enables brands to create surprise and delight moments which can increase brand loyalty by as much as 71%.
The problem is that most brands with rewards programs don’t truly understand nor do they have the ability to implement the randomness of rewards and experiences through automation. In other words, a coffee company giving away a free cup of coffee with every 10th purchase will never surprise and delight a customer. Sure, the first time is great, and it may even be a surprise. But subsequently, it will become less unexpected in the long run, which can lead to further disappointment if the taste or the experience around getting that free cup is diminished in any way.
By implementing an AI on your mobile app, the coffee company, for example, can randomly offer free cups of coffee that average out to every 10th visit. Not knowing when that free cup of coffee will come to fruition will actually keep customers more engaged and coming back for more coffee. This is a lesson that casinos know very well by tapping into the randomness of winning on a slot machine.
Behavioral Analytics for Anticipating Customer Needs
AI-powered predictive analytics enable brands to anticipate customer needs and proactively offer relevant products or services. By analyzing an app user’s behavioral data such as app navigation, purchasing habits, competitive visits, and geographic location, a mobile app AI can predict what customers may need before they even know it.
For example, a restaurant’s mobile app can analyze a customer’s order history, visitation patterns and competitor visits. Then, it can prompt a customer to visit more frequently or offer discounts to mitigate competitor visits. It can even suggest new dishes they may enjoy so the customer doesn’t get bored of the dish they frequently order. This not only enhances the customer experience but also drives incremental sales which can add up to vast amounts of additional revenue.
Continuous Learning for Ongoing Optimization
One of the key benefits of incorporating AI into mobile apps is the ability to continuously learn and optimize the user’s experience. By incorporating behavioral analytics, the AI can adjust and refine rewards, experiences, and recommendations to better meet a customer’s needs while increasing the value said customer feels for the brand.
Another benefit of the AI’s behavioral learning is that the data can be applied towards other marketing initiatives. For example, who you think your competitors are and who they actually are often quite different. In such cases, this information can be used to shift media buys such as out of home and digital geo-targeting.
Moreover, ongoing behavioral optimization improves the effectiveness of a mobile app’s AI over time, which leads to even greater personalization as well as more relevant surprise and delight moments.
Incorporating artificial intelligence into your mobile app is an incredibly powerful way to manage the relationship your brand has with its customers. By leveraging AI-powered personalization, randomization, behavioral analytics, and continuous learning, organizations can realize new levels of brand loyalty along with an increase in lifetime customer value.
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