Is it really possible for AI to improve your customer loyalty program? The answer is yes! The majority of customer service professionals say AI improves the customer experience, so if you’re not using it yet, you’re missing out.
I’ve written a lot about AI in the sales and marketing process, and I come back to the same sentiment that AI can only do so much and that human input is incredibly important. For this reason, even for me, improving customer loyalty with AI felt like a leap, but after speaking to 12 professionals, I’m a convert.
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If it sounds counter-intuitive that automation and artificial intelligence add value to such an extent that retained customers become loyal customers, then this is the article for you. Let’s get into it.
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How AI Can Impact Customer Loyalty
First, let’s look at how AI can impact customer loyalty through four use cases.
Chatbots
Chatbots are an easy way to improve the customer experience by allowing people to self-serve, accelerating resolutions to their real-time problems. A survey conducted by Userlike found that 80.2% of people had interacted with a chatbot, and 77% wanted the option to speak to a human agent.
Many AI chatbots do provide the option to speak with a person. See the image below of HubSpot’s chatbot, where you can click “Chat with sales” and speak with an agent.
I often use a chatbot to access a human, but there are plenty of circumstances where the chatbot has the functionality to do what I need. In circumstances where the chatbot can serve me, I’m happy because it’s faster!
I’m not the only one who’s satisfied with AI chatbots. Tidio’s study found that businesses (especially ecommerce) are very satisfied with how customer service has improved thanks to AI chatbots.
According to IBM, Lyro’s chatbot handles 80% of common inquiries and improves response times significantly.
Analytics and Predictive Analysis
AI can analyze and handle large datasets faster than any human. Plus, unlike a person, AI can be on, working in real-time 24/7 for every single customer on your website or recorded in your CRM.
For example, Omer Lewinsohn, General Manager at Management.org, uses AI to improve customer loyalty by analyzing historical transaction data and customer interaction.
Lewinsohn says, “AI predicts future buying behaviors and preferences. This predictive capability helps us design loyalty programs and offers that resonate more deeply with our customers.”
When asked for an example, Lewinsohn says, “Customers who frequently purchase certain products may receive personalized discounts or exclusive early access to new products, enhancing their feeling of being valued and increasing their loyalty.”
As mentioned before, AI can work 24/7 and for every interaction. When working in real-time, personalized discounts can be provided to customers when they’re on your website contemplating a decision.
Audience Segmentation
Segmenting audiences in your CRM or email campaigns allows you to deliver personalized campaigns designed to nurture your audiences to conversion.
Mailchimp says that their AI audience segmentation is faster and more efficient.
If you know what your audience is interested in, you can build campaigns to better support and engage them.
For example, if you have an automated segment of people who downloaded your most recent ebook, you can target them with content related to the ebook. If you want to take this further, as pictured below, you can add filters such as location or engagement metrics like the number of pages viewed.
Personalization
The audience segmentation leads nicely to personalization.
Alex LaDouceur, Co-Founder at Webineering, recommends micro-moments as the ultimate form of personalization.
LaDouceur says, “We’ve been using AI micro-moments as a new form of customer outreach, creating small, personalized touchpoints based on tiny details of a customer’s engagement. If AI sees a customer looking at a certain product page for a long time or regularly checking their account balance, it might throw them a little real-time bone, such as a discount code or personalized copy, without them having to take action other than engaging.”
The above details just four ways that AI improves customer loyalty. Next, we’ll look at real-life examples of professionals using AI to build customer loyalty.
Examples of AI Building Customer Relationships
I asked professionals for their most interesting examples of AI being used for customer loyalty, and everyone delivered.
Toggl: Proactive AI Engagement Prevents Churn
Toggl uses predictive analysis to track engagement and predict customer disengagement. With this analysis, Toggl can offer proactive help before customers know they need it.
I asked Alari Aho, CEO and Founder at Toggl Inc., about proactive help.
Aho explained and provided examples, “Offering proactive help before [the customers] even know they need it could be as simple as an email nudging them to use a feature they‘ve overlooked, or as complex as offering personalized training for teams that aren’t getting the most out of the product.”
Aho says the benefit is “[showing] users that we care about their success with our tools, keeping them loyal over time. AI allows us to be proactive rather than reactive in nurturing loyalty.”
Aho has many great tips for bringing proactive AI engagement into your operations. Below, I break down each top tip.
Set up triggers.
First, Aho recommends setting up triggers. He says, “Set up triggers for proactive communication, offering support or incentives to re-engage users before they decide to leave.”
Catch signs of disengagement early.
Proactivity is certainly the goal of catching disengagement with your product. With AI, you want to serve your customers before they need it. Aho says, “The earlier you catch signs of disengagement, the easier it is to course-correct and bring users back on board.”
Keep the communication personal.
Personalization came up a lot when I researched how AI supports customer loyalty.
Aho says, “Keep the communication personal, and don't bombard them with generic messaging — use AI to deliver genuinely useful tips or tools that will enhance their experience. A timely, thoughtful interaction can turn a wavering user into a long-term loyal customer.”
What I like: I love this example from Toggl. I think taking proactive measures to look after customers is exactly where AI can be a huge benefit. As I mentioned earlier, the major benefit of AI is that it can be on 24/7 and can serve every single one of your customers. This is an insightful example of how to do it.
Reiner Group: AI Proactively Predicts Maintenance
I love this example from Andrew Hulsebos, Service Director at Reiner Group Inc. Huslebos uses AI for many proactive customer touchpoints, such as maintenance needs and timely reminders for service appointments.
Hulsebos told me, “In our HVAC company, AI has helped us create a personalized customer experience from the start. We use AI-driven analytics to track customer preferences, predict maintenance needs, and provide timely reminders for service appointments. This has helped us reach out to customers before an issue arises, giving them peace of mind and reinforcing trust in our service.
“Being able to predict when their system might need a tune-up, we offer preventive maintenance at just the right time, increasing both the longevity of their equipment and their satisfaction with our company.”
This is a perfect AI use case. The AI can automate alerts or give service teams a heads-up about when maintenance might be due. This proactive service will undoubtedly keep customers happy and prevent them from reaching a problem and turning to Google (and potentially competitors) to resolve it.
Automate routine tasks.
Hulsebos’s tip for implementing AI is to focus on automating routine tasks so you can maximize the human element.
He says, “Start small and focus on high-impact touchpoints. We use AI to automate routine interactions, like sending reminders or follow-up messages, but also make sure that there’s still a human element for more complex conversations. Balancing automation with personalized customer care allows us to maintain a relationship that feels personal and attentive, which is what drives long-term loyalty.”
What I like: I love it when I feel like a company is looking out for me. I had a company call me at timely moments when I needed a service a few years ago. I was so impressed with their proactivity that I signed up with them. I felt looked after and cared for.
Ondato: Process Improvements and Predictive Analysis
Liudas Kanapienis, CEO of Ondato, says the company is using AI extensively to improve business processes, which indirectly impacts customer satisfaction and directly impacts customers with personalization. Like Toggl, Ondato also uses predictive analysis.
Let’s dig into each example so you can start implementing this innovative AI for yourself.
Personalization
Kanapienis describes trust as “paramount” in the compliance space. According to him, “AI has played a critical role in fostering customer loyalty for our business by enhancing personalization, streamlining onboarding, and improving user experience.”
Kanapienis is using AI to “provide a seamless and tailored experience,” which is a “game-changer for customer retention.”
Processes
Ondato’s process improvements made them “faster, more accurate, and user-friendly.”
Processes were improved with AI-driven identity verification and fraud detection. Kanapienis says, “We reduced onboarding time while maintaining high security, leading to a smoother and more trustworthy experience. This efficiency creates a strong first impression, which is crucial for building long-term loyalty.”
Predictive Analysis
One key way AI helps with customer retention is through predictive analytics.
Kanapienis says, “By analyzing user behavior, we can proactively address potential pain points before they become issues. For example, AI flags unusual activity, allowing us to offer proactive support or adjustments, reinforcing the customer's trust in our service.”
Kanapienis has top tips for implementing AI to improve customer loyalty. He says, “Start by integrating AI tools that enhance the user experience, such as chatbots for real-time support or recommendation systems that offer personalized content. Focus on one process — like customer onboarding — where AI can immediately show results. The smoother and more personalized the experience, the more likely customers will remain loyal.
“By making every interaction seamless and relevant, AI helps turn satisfied customers into long-term advocates.”
What I like: The team at Ondato has made the best out of AI for customer loyalty by integrating it into different parts of their company. The goal is always about the customer, though, and it shows how things like process improvements filter down and serve them.
The Laundry Basket: Personalized Offers
If you start collecting data about your customers’ behavior, you can learn what they want from you and then give them a personalized experience.
Hyacinth Tucker, Owner and CEO of The Laundry Basket LLC, describes AI as a “game-changer” for improving customer loyalty.
She says, “We use AI-driven tools to analyze customer behavior and personalize the experience for each individual.”
When asked for an example, Tucker says, “Based on past purchases and service preferences, we send tailored recommendations and exclusive offers that match each customer's needs. This level of personalization makes our customers feel valued and keeps them coming back.”
Tucker’s tips for implementing AI in customer loyalty would be, “To start by collecting data on your customers' preferences and buying habits, then use an AI platform to segment your audience and automate personalized communications. The key is to make sure the recommendations feel natural and relevant, not overly salesy.”
What I like: This AI approach is bringing a better, more personalized experience to Tucker’s audiences. I like how she finds a balance between natural and relevant marketing that isn’t too salesy.
Sail: Optimized Marketing Campaigns for Hotels
Shahar Rubin, CEO of Sail, is using AI to help hotels gain loyal customers. There are two primary ways in which the company is using AI.
Targeted Campaigns
Sail’s algorithms analyze hotel booking and guest data to optimize marketing campaigns and boost direct bookings, which builds trust and loyalty.
Rubin provides an impressive example, resulting in direct bookings rising 34%, “One hotel saw stagnant growth for over a year. Our AI found their social media presence was low, so we launched targeted Facebook and Instagram ads. In three months, direct bookings rose 34%, and repeat guest rates increased over 50%. By using data to demonstrate how we improve KPIs, hotel loyalty soars.”
Chatbots
Rubin continues, “We also provide 24/7 chatbots on hotel websites to resolve basic questions. One hotel found over 70% of inquiries were simple, like rates or amenities, so their chatbot now handles these. Guest satisfaction improved 15% in two months. The chatbot streamlines simple interactions so staff can focus on meaningful guest relationships.”
On using AI, Rubin warns that the “Combination of AI technology and human touch is key. We use AI to handle repetitive tasks, freeing hotels to personally engage guests. When customers see how AI benefits them through a better experience and staff empowered to build real connections, loyalty grows.
“AI allows us to gain insight into what matters most to our customers and take action. The result is higher direct bookings, more repeat guests, and lasting partnerships.”
What I like: Sail has provided some excellent examples of AI and customer loyalty. They’ve seen notable and measurable impacts from AI, and I love their outlook on the balance between AI and that vital human touch.
50 Free Customer Service Email Templates
Templates to communicate price increases, apologies, thanks, and notifications to your customers with sincere, on-brand messaging.
- Price Increase Letter Templates
- Customer Apology Email Templates
- Referral Email Templates
- And More!
Download Free
All fields are required.
Tips for Using AI to Gain Loyal Customers
Look after customer service teams.
HubSpot’s AI Trends for Marketers says, “It’s important to acknowledge that there are still many professionals who are skeptical about [AI] and the technology’s impact.”
From HubSpot’s research, we know that 57% of marketers feel pressure to learn AI. If we want to get the most out of AI for customer loyalty, teams need to be on board. I think it’s important that teams feel empowered to use the tool and are not scared of AI’s role in customer service.
Happy customer service teams equal happy customers. AI is a great help to customer service. It helps them hand over the bits of the job they don’t like, leaving them to focus on what they do.
[Video: https://youtu.be/blcJtN2ZDeA?si=dDqneJLRZ-mLyFC-]
Start by integrating AI into existing tools.
I’ve written about this before, but I think it’s a really good tip: start integrating AI tools into existing tools. The data speaks for itself. HubSpot’s research shows that AI usage increases through existing tool integrations.
Marcus Clarke, Owner of Searchant, recommends starting with AI by “integrating an AI tool into your CRM that helps you collect and analyze data to identify behavioral patterns.
“Then, craft personalized outreach strategies that speak directly to the individual’s preferences. By making each customer feel uniquely valued, we’ve seen retention rates increase by 20% in six months, strengthening long-term loyalty.”
Use chatbots strategically.
Andrew Dunn, Vice President of Marketing at Zentro Internet, uses AI chatbots to provide 24/7 personalized support.
Dunn says this support has “significantly boosted customer satisfaction and loyalty.”
“Our chatbots learn from each interaction, continuously improving their ability to resolve issues quickly and accurately.”
When implementing chatbots, Dunn recommends that you “start small with a focused use-case, like handling basic troubleshooting queries, and gradually expand the bot's capabilities based on customer feedback and data analysis.”
Understand your customers.
Dinesh Agarwal, CEO at RecurPost, has a great use case for AI and a good tip for getting started.
Agarwal explains the issue customers were facing and how they solved it. He says, “Our users were struggling with inconsistent engagement with their posts. We developed an AI-driven system that not only analyzes past performance but also adjusts posting times and content formats in real time. This personalization has significantly boosted user satisfaction and retention by ensuring their content consistently performs well.”
To implement this level of personalization, RecurPost’s team started by understanding their customers' challenges so they knew what they had to resolve. Then, they could create a solution around the customers’ needs.
Agarwal says, “I suggest starting with a deep understanding of your customers‘ challenges. In our case, we identified the gap between user expectations and results. Once you have that insight, employ AI not just as a blanket solution but as a tool that can continuously learn and optimize, specific to each user’s needs. This approach has allowed us to create a more loyal customer base, as they see tangible improvements directly tied to our platform’s adaptability.”
Segment your audience for personalization.
When it comes to starting AI with emails and audience segmentation, I spoke to Josh Bluman, Co-Founder at Hoppy Copy.
Bluman is using AI to send personalized emails based on user activity. Hoppy Copy has used AI to send reminders about features, offers, and tips based on user usage patterns.
Blueman believes that “targeted touches make customers feel valued, which keeps them coming back.”
Bluman recommends that you “segment your audience based on behaviors or interests when implementing segmentation. From there, create personalized messages or offers that speak directly to each segment’s needs. It doesn’t have to be overly complicated at first — focus on small, meaningful interactions that show you understand your customers. Over time, these personalized touches build trust and loyalty.”
Focus on high-impact areas.
It makes sense to start with high-impact areas because any effort you put in will theoretically result in good output for your business and its customers.
Bri Como, Chief Operating Officer at Argon Agency, recommends you “see where customers often contact you and start with a chatbot for simple queries. Use AI for data-driven social and email ads customized to customer interests. Never lose the human touch — use AI to strengthen, not replace, relationships. With the right strategy, AI can boost loyalty and revenue.”
Start using AI for customer loyalty.
I hope this article was as inspiring for you as it was for me.
I was blown away by the positive uses of AI in customer loyalty. I feel like I got some impressive and genuinely valuable insights that balanced AI usage with that human touch. I can see how all the examples bring value to customers.
50 Free Customer Service Email Templates
Templates to communicate price increases, apologies, thanks, and notifications to your customers with sincere, on-brand messaging.
- Price Increase Letter Templates
- Customer Apology Email Templates
- Referral Email Templates
- And More!
Download Free
All fields are required.
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