Click here to read the article as published in the Zee Business November 2023
Companies can now predict customer behaviour, such as churn risk, enabling proactive measures to retain at-risk customers through targeted offers or interventions.
In the ever-evolving landscape of business, customer retention has become a game of constant adaptation and innovation. With the rise of technology, companies now have an array of powerful tools at their disposal to not only retain customers but also foster lasting relationships. This shift in the business paradigm has given rise to a host of groundbreaking technological innovations that are reshaping the way we approach customer retention.
According to Amandeep Kaur, Founder & CEO, Phoenix TalentX Branding, one of the most significant tech innovations that transformed customer retention in recent years is AI-powered personalisation. “By harnessing machine learning algorithms, businesses can analyze vast amounts of customer data to create highly tailored experiences. This allows them to recommend products, services, and content that match individual preferences. Furthermore, chatbots and virtual assistants have become instrumental in providing instant support and information to customers, enhancing their overall satisfaction. These AI-driven solutions operate 24/7, addressing queries promptly and efficiently,” she said.
Another game-changer is the use of data analytics and predictive modelling. Companies can now predict customer behaviour, such as churn risk, enabling proactive measures to retain at-risk customers through targeted offers or interventions.
Moreover, the rise of subscription-based models, powered by tech platforms, has redefined customer loyalty. Services like Amazon Prime and streaming platforms offer exclusive benefits, locking in customer loyalty through convenience and content access. AR and the metaverse redefine customer engagement. Augmented reality enhances product visualization, while the metaverse fosters community and virtual experiences.
All these tech innovations deepen customer loyalty and retention, making them vital in modern marketing by fostering stronger, data-driven connections between businesses and their customers.
According to Archit Agarwal, founder and CEO at Tikshark Solutions, tech innovations have revolutionized customer retention.
“In today’s fast-paced world, staying ahead is vital, and technology has provided businesses with the means to forge deeper connections with their customer base. Innovative processes, driven by cutting-edge tech, empower brands to anticipate their customers’ needs through data analytics, resulting in personalized recommendations and seamless omnichannel experiences. This transformation in the customer journey is crucial for building enduring relationships,” Agarwal said.
With the integration of AI-driven chatbots, the power of social media, and immersive experiences, a new era of engagement and customer loyalty has dawned. However, the human touch remains central. Authenticity, empathy, and genuine connection are still the foundations of customer retention. Technology, then, becomes the bridge that facilitates these essential connections.
According to Christopher Roberts, Managing Director, Engaged Strategy and Creator of the Total Engagement Model, customer retention is the cornerstone for a business to thrive and technological innovation stands as a potent force. However, he feels that it is not merely a matter of employing technology, artificial intelligence (AI), or chatbots to streamline customer interactions.
“The fundamental principle lies in how a business approaches technological integration within the domain of customer experience (CX). This business intent can either be a game-changer or a significant obstacle,”
Technology, be it GenAI, AI, bots, etc. brings undeniable benefits, including swift responses, round-the-clock availability and efficient task management. Nevertheless, their role transcends mere operational efficiency. They must be trained to not only comprehend but also respond to the emotional nuances of customers, fostering empathy within digital interactions. If a customer is made to interact too long with a bot, or if an app is overly smart for your customers’ understanding, there is no way that you will win the CX game. The true triumph lies in establishing a harmonious coexistence of technology and human elements. Utilising technology solely to downsize the workforce can backfire as it may leave customers feeling alienated and underserved,” Roberts said.
However, when AI complements human support by handling routine inquiries and seamlessly redirecting complex issues to human agents, customers experience a sense of value and understanding. This synergy optimises operational efficiency while maintaining the indispensable human touch.
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