AI-Driven Personalization -Based Customer Retention Strategies for Indonesian Digital Startups Amidst the Promo Fatigue Phenomenon

Abstract

The phenomenon of promo fatigue, characterized by the declining effectiveness of repeated promotions, poses a challenge for digital startups in Indonesia in maintaining customer loyalty. Modern consumers tend to ignore generic promotions due to the high intensity of exposure to similar advertisements and offers. Under these conditions, utilizing AI and Big Data is a strategic approach to increasing customer retention through personalized services and marketing communications. This study aims to... analyze role personalization based AI in increase retention customer on digital startup Indonesia in middle phenomenon promo fatigue. Method Which used is literature review By reviewing various scientific articles, international journals, and academic publications related to AI-driven personalization, customer engagement, customer loyalty, and customer retention, the study results show that AI is capable of processing data. customers in real-time to generate relevant product recommendations, personalized offers, and interactions that better suit individual customer preferences. Strategy the proven increase involvement customer, satisfaction, And loyalty thus contributing to long-term customer retention. However, AI implementation still faces challenges. various challenge like privacy data, bias algorithm, limitations quality data, as well as the risk of over-personalization. By Because That, startup digital need apply strategy AI Which transparent, ethical, and oriented towards customer needs to increase loyalty and business competitiveness in a sustainable manner.