Impact of AI-Enabled Customer Satisfaction on Retention and Financial Performance: A Quantitative Study in Tunisian Online Cosmetics Communities

This study examines the relationships between artificial intelligence (AI)-enabled customer satisfaction, retention, and financial performance in Tunisian online communities (Facebook) dedicated to cosmetics. Sample data were obtained from 280 active members of Facebook communities related to natural cosmetics brands. AI tools (e.g., product recommendations, automated consultations, and chabots) enhanced satisfaction, participation, and engagement, creating a highly unifying, customer-centric brand loyalty. Ultimately, we find that AI-enabled satisfaction significantly influences active participation and engagement in communities, which in turn promotes loyalty and retention intentions. Customers who are loyal and willing to retain are significantly more likely to have financial performance outcomes such as average spend, cross-buying, and willingness to pay premium prices. With AI as a potential strategic enabler of customer relationship enhancement through customer satisfaction and retention, we challenge existing models of satisfaction - engagement - loyalty to include AI. Additionally, the research has practical implications for marketers and brand managers in emerging markets, highlighting the necessity for them to activate the AI functionalities of online brand communities to embed customer relationships that successfully lead to sustained profitability.