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Customer Loyalty Loop Using ML and Automation

Organizations who want a competitive advantage will need to create distinctive customer experiences that boost customer loyalty and retention.

Customer Loyalty Loop Using ML and Automation

Create a Customer Loyalty Loop Using ML and Automation that can be Scaled

In today’s competitive marketplace, it is no more enough even for businesses to just compete on price, quality, and value. They’re now squabbling over a more important issue: the customer’s perception of the brand. If you want to be successful, you need to shift your focus from short-term acquisitions to long-term customer loyalty.

Investing in this business has a high probability of rewarding results. Loyal customers generate more revenue and have a higher lifetime value than new ones, therefore keeping them is cheaper by a factor of five.

With the variety of offers that organizations deliver to their clients, customer retention is not without its hurdles. It’s common for many companies to provide the identical, one-size-fits-all deals to every customer. However, 80% of customers are more inclined to purchase when brands deliver tailored experiences. These broad transactional offerings do not foster loyalty. Personalizing the customer journey for each individual is now a must since customers expect every interaction to be highly relevant to them. A dynamic offer optimization can aid with this one-to-one relevancy.

  What is Loyalty Loop?

The customer loyalty loop illustrates how customers make purchasing decisions and then decide whether or not to continue with those choices. Customers continuously review whether or not they made the right decision by purchasing an item, and the loop knows that this constant evaluation is what the loop is built around.

It’s impossible to overstate the importance of long-term clients, who put their trust in your company, buy more, and spread the word about your brand. The classic conversion funnel, used by many businesses, ignores the importance of retaining current customers by simply having the following six stages: awareness, interest, consideration, intent, evaluation, and purchase. However, the classic conversion funnel is still widely used.

Newer versions of the conversion funnel track the retention stage, but a better way to measure and manage client retention is the loyalty loop.

Instead than relying on a traditional funnel, the loyalty loop takes into account the role that technology and social media have had on today’s consumers.

  Challenges to Build Customer Loyalty Loop

The customer loyalty loop only works if each brand engagement is relevant and valuable. Existing marketing tech stacks aren’t intended for loyalty loop marketing.

Most marketers personalize material. They can change consumers’ first names, pictures, and more. This isn’t enough individualization. Social networking, Google AdWords, and Netflix have raised customers’ expectations. They want personalized points, products, and prizes.

Loyalty loop trigger

The loyalty loop trigger is its main feature. This is what motivates a customer to buy. Marketing creates the urge to buy, and loyalty loop marketing drives customers to skip review and contemplation and go straight to purchase. It reduces buying time and boosts brand loyalty. Summary:

Trigger – The practice of developing a need in a customer’s thinking through marketing messages or offers.

Initial Consideration Set – A customer does online or offline product research.

Active evaluation – Customers compare features, pricing, reviews, return policy, etc.

Customer buys a product or service.

After a purchase, a customer may leave a review or spread word-of-mouth.

Select Offer optimization platform

To create a customer journey based on data analytics for loyalty loop tools and triggers, you must give individually individualized experiences while providing repeat purchase chances.

Choose provide optimization platforms that gather consumer data from loyalty programs and data platforms that employ machine learning (ML) to acquire actionable insights into individual customer’s motivations, interests, and habits. Offer optimization tools employ ML to create dynamic customer loyalty offers and distribute them across all marketing channels.

ML algorithms never stop learning, so that’s just the beginning. They examine each client interaction and customize offers and experiences. This clever automation scales to millions of tailored offerings that get more effective—true 1:1 relevancy.

Personalized brand building

The number and type of actions necessary, offer categories and products, and the quantity and type of prizes were all customized. Formation automated offer assembly, offer management, award fulfillment, and KPI measuring and tracking for the worldwide coffee chain.

Starbucks used Formation to expand offer variations 100x and reduce development and launch time 10x, leading in a 20% increase in U.S. loyalty program member spending.


Gamification has negatives, yet it can be exciting for goal-oriented clients. Gamification requires time and effort. Your organization and customers can’t customize their experience.

A marketing solution that  automates one-to-one personalization  and gamification can unlock your clients’ growth potential. Our technology allows us to reach your clients wherever they are in their journey and provide them customised offers that fit with your goals. Using promotional offers, you may boost purchase frequency, reward and reinforce behavior, cross-sell, upsell to high-value products, onboard new consumers, and re-engage inactive ones.

Formation’s offer library includes customer journey templates based on gamification or progressive behavior modification. Then optimize and grow the process through better and faster experimentation. Pre-wired templates use client data insights to be configured quickly and automatically. This means you can start manufacturing in days, not months.

How to Boost Customer Retention with AI?

AI is a hot topic right now, and it’s a smart investment for companies. For your firm, artificial intelligence is a key to  unlocking a slew of new potential prospects . It allows you to improve the complete customer experience, from omnichannel presence to improved personalization.

With the correct application of AI, you have a decent chance of gaining long-term consumer relationships. Businesses can effortlessly cultivate their relationships with clients by utilizing AI-integrated products.

Artificial intelligence can be used to improve client retention in the following ways:

  • Gather as many data points as possible to get the best results.
  • In order to predict who is at danger, predictive analytics employs Machine Learning.
  • Make a list of those clients who are most important to you.
  • Personalized advice for specific people
  • Interact with your clients


Infinite potential awaits those who use artificial intelligence, and the demand for it will never fade. More and more tasks are being taken over by artificial intelligence (AI), and  organizations who want a competitive advantage will need to create distinctive customer experiences  that boost customer loyalty and retention.



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