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AI-Powered Personalization Drives Loyalty in Retail
Abstract
This chapter delves into the transformative impact of AI-powered personalization within the retail sector, emphasizing its critical role in fostering deeper customer loyalty, enhancing engagement, and streamlining operations. It examines how retailers leverage machine learning (ML), natural language processing (NLP), and Generative AI (Gen AI) to analyze vast datasets and deliver loyalty-building personalized experiences across omnichannel platforms. The chapter features case studies of leading brands like Amazon, Starbucks, Sephora, and Walmart, showcasing how AI-driven loyalty initiatives, from tailored product recommendations to personalized customer service and anticipatory inventory management, strengthen customer relationships and drive repeat business. By exploring emerging trends such as hyper-personalization, immersive loyalty experiences, and AI integration with AR/VR technologies, the chapter presents a strategic framework for retailers looking to harness AI's power to build lasting customer loyalty and competitive advantage in today's dynamic retail landscape.
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