Question

How does technology-driven personalization impact customer loyalty?

• A. It decreases customer satisfaction by ignoring preferences
• B. It increases loyalty by tailoring offers and recommendations based on past behavior
• C. It forces customers to accept generic offers
• D. It removes customer choice

Answer 1

Answer:

B. It increases loyalty by tailoring offers and recommendations based on past behavior

• Personalization through big data analytics, as used by Netflix and Starbucks, helps deliver relevant content and offers that enhance customer experience and foster stronger loyalty.