Global markets have seen an increase in competition which has led to significant challenges for different enterprises when it comes to customer retention and hence, brand loyalty. In addition, customers have become increasingly demanding when it comes to services and products delivered. Bad customer experience on social media has a direct impact on a company’s bottom line. Customer retention and acquisition have therefore become crucial for enterprises and organizations.
Looking to improve brand loyalty, enterprises continue to offer packaged solutions instead of personalizing their offerings. Here are some facts that emphasize the importance of inculcating brand loyalty among your customers:
“An article in Harvard Business Review states that acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one”
” Research done by Frederick Reichheld of Bain & Company has shown that even if you increase customer retention rates by just 5%, you increase your profits by 25% to 95%”
The bottom line? Keeping customers is more valuable than investing in acquiring new ones.
So how can companies learn to improve their brand loyalty and hence, retention?
The answer is in two words – customized incentives.
Many companies have developed a number of machine learning models to help with this issue. However, the majority of these models are static, like decision trees. Moreover, implementing these models can be expensive for small to medium-size businesses.
At PredicitivEye, we team up with SMEs to uncover real-time insights about their customers using artificial intelligence and machine learning. Our models learn from the customer’s behavior to target the brand loyalists with personalized rewards instead of one-size-fits-all strategies. Additionally, we analyze your customer’s demographics, psychographics, and behavioral patterns to understand the likelihood of customer referrals. This helps SMEs meet their customers’ expectations, thus improving brand loyalty.
Want to know more about how we can help you with brand loyalty? Request a FREE demo!