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3 Mins Read
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8,932 Views

Why Your Brand Must Embrace a Hyper-Personalized Retention Model Now

Customer engagement has undergone significant transformations in recent years, particularly accelerated by the seismic shifts brought on by the COVID-19 pandemic. The rapid rise of e-commerce during that phase compelled brands to change strategies as the lines between physical and digital storefronts became blurry. Today, we continue to see the results of that phase: Digitization is synonymous with opportunities for wider reach and more growth.

At the same time, high consumer awareness has created what we call an “experience economy”. Businesses can no longer just rely on selling goods and services as mere transactions. Selling has, more than before, become about communicating the positive impact that a product or service has on buyers’ lives. As each customer might harbour different opinions about what constitutes “value”, businesses must personalize their offerings, recommendations, messaging, and overall engagement. Having a full-stack retention solution to gather deep customer insights and create omnichannel strategies is thus becoming non-negotiable.

Omnichannel engagement is an insurance against churn

In 2023, the valuation of e-commerce retail in the UAE was estimated to be $6.2 billion and is forecasted to rise to $17 billion by 2025. A big factor behind this surge in e-commerce was that businesses began embracing omnichannel operations, regardless of whether they have customer- or business-facing models. This pivot has not only catered to the evolving needs of consumers but has also levelled the playing field. New entrants gained market share through competitive and unique value propositions, while incumbents meaningfully lowered operational costs by focusing on retention.

This has brought up an interesting trend in the market: High awareness of different options in the market means that customers are susceptible to churn. The slightest disengagement and negative experience can make customers turn away from a brand.

Having a full-stack retention solution has enabled brands to build a repository of customer data, create precise market segmentation, and bring AI-led prediction to their marketing process. As a result, individual shopping behaviours and preferences can be analyzed at a granular level and, through journey designers and campaign orchestration tools, used to deliver the right messaging at the right time and in the right channel. The era of one-size-fits-all marketing is long gone.

AI-powered MarTech is here to stay

What comes with the territory when you shift to robust omnichannel strategies is the need to optimally use the vast amounts of customer data that gets collected. AI-powered tools embedded within a retention system will become the norm as a result. The utility they provide in leveraging first-party data will drive customer satisfaction and loyalty targets. That, in turn, translates to long-term relationships, good retention rate & improved margin. Integrated with CRM systems and other software, AI algorithms will maximize efficiencies and ROI while minimizing human intervention — all leading to remarkable business outcomes for brands.

Brands must not get complacent with existing customers and their experiences, and having an automation tool that can provide data-driven insights is crucial on this front. AI-driven retention operating systems not only deliver consistent experiences to customers but also allow course-corrections of engagement strategies through deep-learning models.

As the market matures further, it is safe to say that more businesses than ever will begin leveraging AI-powered marketing tools. Hyper-personalization is here to stay, and so are AI- and ML-powered retention tools.

  • Created: 6th June, 2024
  • Last Updated: 6th June, 2024

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