Artificial Intelligence is being incorporated into loyalty programs
Trend - Brands in the retail space are using AI to enhance their loyalty programs, seen in everything from clothing to food industries. This shift allows consumers to receive the benefits of reward systems in a way that's more interactive for them, and more functional for the brands in question.
Insight - Consumers are increasingly willing to share more information about themselves in order to receive more personalized rewards from brands. Though some are wary of data sharing and the risk it poses to digital privacy, many have become accustomed to the convenience and customization data sharing enables. The latter are consumers who are open to new technologies and their associated risks, given the technology provides a unique service.
Insight - Consumers are increasingly willing to share more information about themselves in order to receive more personalized rewards from brands. Though some are wary of data sharing and the risk it poses to digital privacy, many have become accustomed to the convenience and customization data sharing enables. The latter are consumers who are open to new technologies and their associated risks, given the technology provides a unique service.
Workshop Question - Conceptualize an AI-based rewards platform for your brand's loyal customers.
Trend Themes
1. Personalized AI Rewards Programs - Businesses utilizing AI to predict how consumers want to redeem rewards and provide customized offers are disrupting traditional loyalty programs and boosting consumer satisfaction.
2. Integrated Smart Technology for Loyalty Programs - Companies are integrating smart technology such as chatbots, RFID tagging, and wearables into loyalty programs to provide new and interactive rewards experiences for consumers.
3. Voice-activated Sampling Campaigns - Sampling campaigns using voice-activated technology like Google Assistant or Amazon Alexa are disrupting traditional sampling methods and opening up new consumer segments.
Industry Implications
1. Retail - The retail industry can benefit from using AI and smart technology to enhance loyalty programs and improve customer experiences.
2. Hospitality - The hospitality industry can leverage chatbot AI and other smart technology to provide more personalized and enhanced experiences for loyalty program members.
3. Marketing and Advertising - The marketing and advertising industry can adopt innovative sampling methods using voice-activated technology to reach new consumer segments and increase brand loyalty.
