Have you received a phone call from an energetic young woman who says something like “Hi, I just wanted to let you know that your recent stay at the [hotel name here] qualifies you for a free night, isn’t that great?” If you say anything other than yes the voice will say “I’m sorry, I didn’t get that, free is good right?” It may take a few exchanges before you realize you are talking to a digital robot – an artificial intelligence computer. Since the computer starts out programed to recognize many words and how to reply and then learns more as it has conversations with humans, the result is pretty impressive. The intended business results not so much.
Earlier this year an article in Loyalty360 reported that only one in three (36 percent) are comfortable dealing with businesses that use artificial intelligence (AI) to engage them. When asked if using AI allowed for better service and overall experience would that make a difference, people said no. Almost three out of four (72 percent) said they have a degree of fear about AI. The rest of the article went on to give a defense of AI sighting things like efficiency, improved customer relationship management (CRM) and easy to access analytics. It was pointed out the there is misunderstanding about AI and that many things people use every day function using AI and machine learning.
What was not covered in the article was why people react as they do. One theory is that there is an intimidation that comes from talking to a machine. Others feel it is disrespectful. When a consumer has an issue and can only talk to a machine it increases their frustration and their dissatisfaction with the brand. And when the machine can’t quite grasp what is being said or fails to offer alternatives, customer experience and brand affinity can be destroyed.
That begs the question: Why use AI if the reaction to it is not completely positive? Because strictly by the numbers it appears to be efficient. Without a salary to pay, the computer can make calls all day, never take a break, always sound pleasant and proper and end up with what seems like acceptable accomplishments. People involved in the business of building and using AI are very enthusiastic about the amazing technology and interpret information in a way that supports their position. Other surveys and research, not necessarily specifically about AI reveals interesting facts that can be important to people in the promotional advertising/specialty marketing industry. A study discussed in Successful Meetings found that face to face requests are 97 percent more likely to be agreed to. That means you need 200 electronic contacts (email, AI, robocalls) to equal the power of just six people addressed in person.
The argument is that it might take all day to meet with six customers but an email blast can go out to 200 people is seconds. The tech enthusiast wins that round! But when the effectiveness is measured against the efficiency, the tables are turned. Which would you prefer to have, six customers who do business with you or 200 who don’t?
If you apply this knowledge when meeting face to face with your clients (customers) and discuss it along with pointing out that the ability to give a promotional item to reinforce the message is provided when meeting, but not available when emailing or using AI robocalls – the likelihood of a promotional project with that client is almost guaranteed.
Consumer buying including B2B is changing. More goods are being advertised on mobile devices and more transactions are happening online every day. Amazon is now in the grocery business and the apparel business and Niki will be selling direct on that platform. The important consideration is that services are not the same as goods. Our industry is a service industry in spite of the fact we earn our living selling goods. It will get tougher to compete selling imprinted goods as online and direct sources will do that with efficiencies that lower costs. But those in this industry who understand they are in the message delivery business – an arm of the advertising industry – will not have to compete on price of goods but rather on creative ideas and past accomplishments.
That brings us back to Artificial Intelligence and Einstein’s quote. AI is essentially a library of information with the ability to acquire more – a knowledge base, not actually intelligence and certainly not imagination. While you still have the real thing, why use the artificial variety?
Gregg Emmer is chief marketing officer and vice president at Kaeser & Blair, Inc. He has more than 40 years experience in marketing and the promotional specialty advertising industry. His outside consultancy provides marketing, public relations and business planning consulting to a wide range of other businesses and has been a useful knowledge base for K&B Dealers. Contact Gregg at gemmer@kaeser-blair.com.