THE ROLE OF ARTIFICIAL INTELLIGENCE IN CUSTOMER LOYALTY PROGRAMS: A CASE STUDY OF GRAND SQUARE SUPERMARKET, ABUJA, FCT
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Background of the Study
Customer loyalty programs are essential for retail businesses seeking to retain customers and enhance lifetime value. Grand Square Supermarket, a leading retail outlet in Abuja, FCT, employs loyalty programs to reward repeat customers and foster long-term relationships. However, traditional loyalty programs often fail to capture individual preferences, leading to reduced engagement and inefficiencies in resource allocation.
Artificial Intelligence (AI) provides advanced capabilities to personalize customer loyalty programs. By analyzing customer data and behavior, AI tools can tailor rewards, offer personalized recommendations, and predict customer needs, thereby increasing engagement and satisfaction. AI-driven loyalty programs are more effective in building strong customer relationships and driving sales growth.
This study explores the role of AI in enhancing customer loyalty programs at Grand Square Supermarket. It evaluates how AI can improve program personalization, optimize resource allocation, and strengthen customer loyalty.
Statement of the Problem
Grand Square Supermarket faces challenges in personalizing its loyalty programs due to the diverse preferences of its customer base and the limitations of traditional program designs. This study investigates how AI tools can address these challenges by providing data-driven insights and enhancing customer loyalty.
Aim and Objectives of the Study
Aim:
To assess the role of Artificial Intelligence in improving customer loyalty programs at Grand Square Supermarket, Abuja, FCT.
Objectives:
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To identify the limitations of traditional customer loyalty programs at Grand Square Supermarket.
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To evaluate the effectiveness of AI tools in personalizing loyalty programs.
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To assess the impact of AI-driven loyalty programs on customer engagement and retention.
Research Questions
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What limitations exist in the traditional customer loyalty programs at Grand Square Supermarket?
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How can AI tools improve the personalization of loyalty programs?
Research Hypotheses
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AI-driven loyalty programs increase customer engagement at Grand Square Supermarket.
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The use of AI in loyalty programs improves customer retention rates.
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AI tools enhance the efficiency of resource allocation in loyalty programs.
Significance of the Study
This study highlights how AI can transform customer loyalty programs, offering insights that can benefit Grand Square Supermarket and other retail businesses. The findings provide a framework for adopting AI technologies to build stronger customer relationships.
Scope and Limitation of the Study
The study focuses on the application of AI in enhancing loyalty programs at Grand Square Supermarket, Abuja. Limitations include the availability of customer data and the specific focus on a single retail outlet.
Definition of Terms
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Artificial Intelligence (AI): Technology that uses data and algorithms to simulate human intelligence processes.
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Customer Loyalty Programs: Marketing strategies designed to encourage repeat purchases by rewarding loyal customers.
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Personalization: The tailoring of products, services, or experiences to individual customer preferences.
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