The impact of AI-driven marketing data personalization on customer engagement and loyalty

Abstract

Artificial intelligence is transforming customer experience through the analysis and personalization of marketing data. Using a qualitative approach, this study examines how AI-driven personalization affects customer engagement and loyalty. The findings indicate that personalized marketing enhances customer participation by enabling enterprises to tailor content and interactions based on customer journeys, preferences, and behavioral data. AI-supported personalization also strengthens both transactional and emotional loyalty by improving relevance, convenience, satisfaction, and perceived connection with brands. However, extensive data collection and algorithmic targeting raise ethical concerns regarding privacy, transparency, consent, and potential misuse of personal information. The study therefore emphasizes that enterprises should balance personalization benefits with responsible data governance, transparent communication, and appropriate privacy safeguards.
Keywords
data personalization artificial intelligence customer engagement customer loyalty

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