While there are extensive conversations and content on why business and in this case loyalty programs should invest in relevant AI applications, the For Love or Money™ research provides an insight from the members’ point of view.
For the first time in the ongoing series of For Love or Money™ research studies, six categories of AI use cases enhancing the loyalty program experience for members was researched to identify members’ awareness, comfort and concern with these use cases.
- Personalisation and relevance AI analyses member preferences and behaviours to offer tailored rewards and benefits that are more personalised and relevant to each member
- Customer service AI-powered chatbots, virtual assistants and service agents provide 24/7 assistance, answering questions and processing transactions or service enquiries.
- Predictive product recommendations AI analyses member purchase history, and other data to suggest products that complement members’ preferences.
- Operational efficiency AI automates tasks like processing rewards and updating customer profiles.
- Fraud detection AI detects and prevents fraudulent activities in real-time, ensuring the integrity and security of members’ accounts and rewards.
- Enhancing benefits based on engagement AI tracks purchase patterns to offer increasing benefits based on loyalty and purchase frequency.
It is the use case of AI within Customer Service that members are most familiar with (38%) – AI-powered chatbots, virtual assistants and service agents provide 24/7 assistance, answering questions and processing transactions or service enquiries.
This is followed by Personalisation and Relevance (28%) – AI analyses member preferences and behaviours to offer tailored rewards and benefits that are more personalised and relevant to each member
The AI use-cases of fraud protection and operational efficiency have the lowest awareness yet based on how they enhance the member experience, members’ have the highest comfort factor with these.
The full research reveals the ranking of the six use cases across awareness, comfort and concern and then opens up the significance (or not) across gender and the generations.
You can access the comprehensive For Love or Money™ report here .
This area of research provided a very interesting benchmark and the For Love or MoneyTM research will continue to track this over the years to come.
