The Use of AI in Customer Retention

19/08/22 05:19 PM By Shayne

Let's Talk About Customer Retention

Customer retention pertains to the ability of an organization to keep its customers over time. Apart from identifying loyal customers, customer retention can also reflect customer satisfaction, repurchase behavior, and customer engagement.

While customer relationships typically begin with an initial interaction, customer retention metrics are related to the first purchase made by a customer and include all subsequent interactions. 

Once customer retention is measured, organizations can use this feedback to perform data analysis on components of customer experience.

If an organization does not focus on customer retention but instead focuses solely on expanding its customer base, it is potentially losing out on repeat customers. While the process of gaining new customers is important, it is also much more expensive. Maintaining customers and transitioning them into recurring customers is just as important as gaining new ones.

Use AI to Increase Customer Retention

Businesses are becoming even more curious as to how AI (Aritificial Intelligence) can aleviate data-driven customer marketing and brand loyalty.

Today, AI-based marketing enables organizations to personalize the customer experience while providing real-time decisioning based on the actionable insights that are obtained through the analysis of massive amounts of historical and current customer data. In fact, a report from IBM states that 50% of the businesses today are already using AI to quickly access insights, automate campaigns and processes, and are eager to embed it directly into their customer journey.

So how can AI increase customer retention?

  • Chatbots for Increased Engagement

      According to Accenture, as many as 83% of organizations could serve better if they provided real-time customer service.

      Hence, it is better for you and your organization to create Chatbots for increased engagement.                                          

     You can implement AI-powered chatbots to enable personalization for your customers by automating answers to 80% of routine questions. Not only does this             empowers your customers but it also speeds up the turnaround time and results in reduction of operating costs on the part of your business.                               

  • Personalized Recommendations for a Custom Experience

     An article explains that personalization is so necessary today that almost 56% of consumers claim they would transact with a business again only if it             offered a personalized experience product or services recommendations to them.           

     AI can greatly help supplement a personalized experience by helping to discover what customers need quickly. You can then use this data to tailor your           product or services recommendations to them.

Improve Retention with a Combination of AI and CRM

A true AI-fueled CRM goes beyond simple automation. To provide real benefit, AI must aggregate data from multiple sources, including the need to break down organizational silos to identify patterns in interactions and offer deeper customer insights.

Some feel they don’t necessarily have enough primary data to build effective predictive models. SugarCRM suggests that the trick is to leverage a CRM that understands and captures all of these interactions in a format that can fuel AI initiatives. 

An organization that has the complete picture of customers and leads, thanks to accessible data, can focus on leads that are most likely to convert and proactively anticipate and mitigate signs of customer churn. 

With AI and CRM, you can leverage all your business intelligence to focus on customer retention —optimizing marketing tactics and sales growth. Hence, the reason why you should give attention to ensuring customer retention.

At Devtac, we value customer retention. Reach out and we’ll gladly help you look for solutions.