HSBC is in the process of developing an AI rewards program that will use predictions to better personalize offers for customers.
The new rewards program from the London-based bank aims to create an improved experience for credit card users by predicting how they may choose to redeem their points. As such, the artificial intelligence system will be able to market the offerings in categories—like travel, gift cards or cash—accordingly.
HSBC conducted a test by sending out emails to 75,000 cardholders based on AI recommendations and found that "of those who received the email and redeemed rewards, 70 percent did so in the AI-recommended category and the number of opened emails increased 40 percent." In partnership with loyalty program provider Maritz Motivation Solutions, HSBC is set to make it easier for consumers to redeem the rewards that are most relevant to them.
AI Rewards Programs
HSBC is Using Artificial Intelligence to Predict How Points May Be Redeemed
Trend Themes
1. AI Rewards Programs Personalization - Developing AI-based rewards programs that use predictions to better personalize offers for customers is a disruptive innovation opportunity for the banking and finance industry.
2. Category-specific Marketing for Rewards Programs - Designing rewards programs that market offerings in categories, such as travel, gift cards, or cash, is a disruptive innovation opportunity for the marketing industry.
3. AI-based Recommendations for Rewards Redemption - Offering AI-based recommendations to customers for redeeming their rewards points is a disruptive innovation opportunity for the loyalty and rewards industry.
Industry Implications
1. Banking and Finance - Developing AI-based rewards programs that use predictions to better personalize offers for customers is a disruptive innovation opportunity for the banking and finance industry.
2. Marketing - Designing rewards programs that market offerings in categories, such as travel, gift cards, or cash, is a disruptive innovation opportunity for the marketing industry.
3. Loyalty and Rewards - Offering AI-based recommendations to customers for redeeming their rewards points is a disruptive innovation opportunity for the loyalty and rewards industry.