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  • Writer's pictureIQONIC.AI

Boosting Customer Loyalty with AI

Customer loyalty is an important factor for businesses. The stronger the loyalty, the more revenue each customer brings in - and the less you need to invest in acquiring new customers. Unfortunately, this is often easier said than done: many companies struggle with low customer loyalty. How can technology help here?

A photo of a woman with AI based product recommendations.
AI based product recommendations are one way of boosting conversions an customer loyalty.

According to recent studies, in beauty e-commerce, only every 4th customer returns. But why is that?

A lack of customer loyalty means that customers do not feel the need to shop with a particular company again. A shopping experience that is too easy, whether due to poor customer service, confusing site navigation, or long delivery times, can also discourage repeat purchases. The competitive pressures companies face in a world of oversupply can also contribute. Customers have a variety of alternatives, making it difficult to win and keep their loyalty.


Hope in sight: growing acceptance of AI

71% of consumers would be more likely to buy a product if they could try it out virtually before buying! AR technology is having a significant impact on consumer buying behavior. The trend shows that consumers prefer an interactive shopping experience. As a result, virtual product testing is becoming increasingly important, opening up new opportunities for brands through AI in the beauty industry. 


The fact that customers only buy every 107 days on average highlights the challenge of capturing their attention in the long term. In the 106 days between purchases, there is enormous potential to increase customer loyalty and maintain long-term relationships with customers. AI-supported product recommendations can significantly shorten this period and, for example, increase customer attention by determining the optimal time and content for email campaigns.


Many potential buyers do not complete the purchase process, as evidenced by a 67% drop-off rate in the check-out process. AI can be used to analyze customer behavior in the shopping cart and identify potential abandonment signals at an early stage. On the other hand, personalized product recommendations can be used to better target customers and positively influence their buying behavior by giving them a feeling of process reliability. If the customer is confident that the products are really good for them, they are more likely to buy them. And if the products do actually have the desired effect, they will buy them again – it's a win-win situation!


AI can also analyze large amounts of data to identify and predict patterns in customer behaviour. This helps companies to take proactive measures. With our skin and hair analysis, we also help companies in the cosmetics industry to provide their customers with personalized product recommendations and thereby increase customer loyalty.

Can you imagine using virtual product samples in the future?


If you want to learn more about the topic, take a look at our post: AI Assisted Diagnostics: Do You Trust Dr. AI More Than Your Bank? (iqonic.ai)


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