Value Propositions: How AI Is Helping Build Brand Loyalty

For all the work brands put in to build loyalty, it always comes down to a consumer to reciprocate that relationship.

And sometimes, a consumer just wants to play the field.

Capgemini surveyed 12,000 consumers for its recent What Matters To Today’s Consumer report, finding that 70% have switched brands because they like experimenting. In matters that are more in marketers’ control, 65% said they switched because subscribing to a membership program and sharing preference data didn’t ultimately result in a better shopping experience.

(Source: Capgemini)

“This highlights the key issue of lack of value exchange consumers seek when they sign up for membership program[s] and do not get a better experience,” the report says. 

The report found that 71% of the retail organizations it surveyed consider gen AI to be a transformative technology, one that has already revealed AI use-cases designed for reaching the consumer where they are. According to the report, 30% have implemented it to match brand visions with content creators, 30% implemented it for “hyper-personalized, multi-sensory consumer experience,” 27% for customer-service chatbots, and 25% for predictive analysis of demand and consumer trends.

“To remain competitive,” the report says, “brands and retailers must augment Gen AI tools to become more consumer-centric, use technology to boost resilience and sustainability and lower prices, leverage social and retail media networks as a keyway to engage and influence early in the consumer journey, and bridge the gap in consumer education and trust with transparent collaboration across all partners.”

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