How is Artificial Intelligence Changing the B2B Loyalty Landscape?

AI-2-Loyalty

by Ko de Ruyter, Debbie Keeling and David Cox

Deloitte accountancy consultants recently published the 3rd edition of their ‘State of AI in the Enterprise. Thriving in the era of pervasive AI’ report. It is based on a large-scale study that set out to track how businesses are deploying Artificial Intelligence. No less that 2700+ C-suite execs from nine different countries and across a wide range of industries participated in the research.

Key findings are meant to direct us beyond the current hype cycle surrounding this class of AI technologies (e.g., machine and deep learning, natural language processing) and nuance their business value. Top-line findings include that firms continue to have confidence in AI as a value differentiator. But it is also acknowledged that early mover advantages are fading. Buying (rather than building) AI technology is viewed as key to achieving a competitive edge, but there is increasing awareness of a “preparedness gap” in the presence of a widening range of strategic, operational, and ethical risks.

All interesting stuff, if you are a technology watcher. But, how does this boardroom speak translate into actionable advice? Well, for one it means that we will be conversing with chatbots that text like your best friend. They will tell you what to do when your dog misbehaves, how to save on your energy bill and whether you really do look good in that suit.

On a more serious note, to us at Motivforce, a lingering question is ‘what do these results mean for B2B loyalty marketing professionals?’. In search of answers, we turn to some good old-fashioned, human intelligence from our R&D unit for guidance to help you overcome any preparedness gap that you may have.

Here are 3 ways that AI can enhance your B2B loyalty program:

1.     Personalisation and predicting what members want

When your program participants get what they want, they are less likely to feel the need to even consider selling competitor products and services. So, it is really crucial to know about your members’ personal preferences; what types of incentives do they prefer, what gaps exist in relation to your product portfolio and value propositions, what steps do they take to a typical sale, and what program content works best for them. If your program offers learning modules, AI can compose training roadmaps for personal development. AI can do the heavy lifting for you in collating this information which contributes to creating a personalised profile or ‘playlist’ for your members; not much different from the way in which Spotify caters very successfully to segments of one. And it does not stop there. Through predictive analytics, AI tools are able to predict what your members will want next, so you can see what is coming, maybe even before they do. Now, that is what we call a value differentiator.

2.     Chatbots encourage member engagement

With 24/7 availability, intelligent conversation agents can answer member questions about redemption possibilities, proactively suggest new sales opportunities, support program comms and discuss member learning certifications. As programs are increasingly migrating to mobile platforms and the attention span of members shrinks, they are not going to try to fill in a contact form on their mobile device. They want fast and easy access and answers when it suits them. They want to redeem points when they need to. If not, they won’t be bothered and even to this day many programs suffer from the liability of unused point reservoirs. AI-fuelled chatbots now will drive a more engaging experience and an increase in member point redemptions. So, it is imperative that you start exploring the benefits of the conversational member experience through AI.

3.     Fighting fraud

In terms of risk mitigation, AI can help you combat fraud. B2B loyalty programs are particularly vulnerable to fraud and subject to ever stricter compliance regulations. Also, remember that the large majority of your members want to do the right thing and wish to be recognised for the right reasons. AI can help you identify those few bad apples who game your points system. Algorithms can detect fraudulent patterns in data on point transactions or redemption history. Text analytics powered by machine learning and applied to real time analysis of natural language are now available to help you to flag up false member claims and email exchanges and protect your program.

Our recommended approach to integrating AI in your program

Programs are at varying stages of preparedness when it comes to adding AI to their offering. We get that. Ultimately, we recommend developing a strategy of identifying key objectives to achieve and then familiarise yourself with how the technology can help you get there. Take into account your current program platforms to see how AI tools can be integrated and aligned with program processes. Unlike the folks at Deloitte perhaps, for many program managers AI still feels like a black box. That’s why thinking outside the box is a good way to start reflecting on how your program can thrive in this era of pervasive AI.