AI “Personalization:” Everything Old is New Again

By Bob Musial and Alan Culler

Alan Culler and I are comfortable calling ourselves “old sales guys.”  Recently, we each watched a video where a consultant described how a company could connect with its customers using information that they already had, “personalizing” the customer experience.

The young man wasn’t a great presenter, but there was nothing wrong with the content he presented:

  • Don’t ask people to give you the same information over and over again, as an Urgent Care did to him.
  • Don’t try to sell a dishwasher to someone who just bought one from you.
  • If you know a person’s dog died, stop sending them treat ads.
  • Use some common sense screening. If something doesn’t fit a buying pattern – a cane bought buy a thirty-year old – maybe it was a gift. Don’t send the hearing aid ad.

He advised his audience to be careful about how and when you use Artificial Intelligence (AI) because you can make the customer’s experience “personal” or not-so-much.

“Well, Duh,” said one of us to the other. It seemed like customer relations 101 to us.

We then regaled each other with some of our very own worst marketing experiences as customers:

“Dear, <<FIRST NAME>> That’s how I was addressed,”” said Bob. “This is a simple error of connecting to the “first name” column on an Excel flat file, but failing to make the link to column content. The real problem is no one looked at the resulting email mailing to catch the mistake, so no matter how targeted the content was [it wasn’t] it gets deleted. (Oh yeah, it was sent by a self-professed ‘sales guru.)”

Alan described his frustration with ordering books online. “I typically read historical or science fiction, but my recommended books immediately fill up with whatever I ordered last. This is especially bad after Christmas when I buy the grandkids books. I have five columns of early readers and Where’s Waldo.”

We then went on to described our best most personalized customer experience.

“Hong Kong, 1997” said Alan. “The hotel clerk took me to my room to check me in and my bags magically followed. She took my passport and credit card and noticed that my birthday was the next day. Starting with a 7 am wake-up call, everyone I met in the hotel wished me ‘Happy Birthday.’ My breakfast was comped  and the cab driver the doorman called wished me Happy Birthday as I left his cab.”

Bob said. “I grew up in a small town. I’d pick up stuff at the local grocery for my Mom. The butcher would know what my mother ordered so if I couldn’t read the list or forgot, he helped out. I always got to pick out two penny candies.”

So, what does all that have to do with AI and personalization?

As a society, we are moving towards a seamless electronic sales and service process. Banks, tech companies, on-line booksellers strive to take the costly human being out of the transaction. Some hide call center phone numbers and direct people to online chat-bots. In those cases, the interaction between humans and AI may quickly deteriorate, leading the customer to utter the four most-dreaded words of request, “Speak to an agent.” When you do get to a real person, it soon becomes apparent that call centers measure customer service representatives on metrics like average call handle time, cross-selling on service calls, and not on call resolution or customer satisfaction, not a happy experience.

Now we want technology to “personalize” the customer experience.

At the core of the word personalization, is . . .  “person.”

Persons listen to other people. They hear what is important to the other person (customer). The “seller” offers products or services of value based upon what is important to the customer.

“Personalization”, whether AI enabled or not, is data driven.

In the past, a person might have taken notes about a spouse’s name or a favorite sports team, because it was the basis of a shared “personal” moment, a connection that embodied our shared humanity that gives me, “the seller,” permission to reconnect to learn more about you, “the customer,” to meet your need.

That sales person might have kept a client file, or a notebook. Later that information might have been transferred to a spreadsheet and then Customer Relationship Management (CRM) software like Salesforce.com.

Marketers might have tracked advertisement response rates and purchase history in handwritten documents, then spreadsheets, then ad tracker software.

The key to success of data-driven personalization, whether notebook or software, is keeping the data up to date, and knowing when to use it, and not abuse it.

Unfortunately during the process, “common sense” frequently takes a back seat to technology.

AI can automate data collection and mimic intimate interactions of years past. Computer code, an algorithm, can take the notes, remember the purchase history, recognize patterns of response to certain words, and “personally” recommend a product or service. This technology can dramatically shorten the time required to gather and analyze data from multiple sources to create targeted, meaningful communications.

AI also can portend disaster, ever-faster poorly targeted, even insulting marketing communications that drive customers away rather than attract them.

As you begin the AI or non-AI personalization journey, plan for data accuracy reviews, empathy, and judgement, in short, human insight and oversight. AI programmers and marketers must talk to each other, as the cartoon above illustrates.

Thie AI journey requires detailed knowledge of the customer demographics, and psychographics and the judgement to know when to use it. In the past a customer might have shared a spouse’s name and a savvy salesperson had the judgement to know when and how to inquire after the spouse without sounding creepy.

As AI develops can we trust it to respect privacy, i.e., not be creepy?

The software engineers who develop artificial intelligence are driven by the questions “What’s possible? What can we do?” Marketers must represent the business question, “What  makes sense to generate customer acquisition and retention, revenue and profit? And someone must look at “What should we do? What’s right?”

It is a delicate balance between Artificial Intelligence/Machine Learning and human Soft Skills like communication, critical thinking, creativity and empathy.

Clients and prospects will appreciate receiving well-timed, personalized communications, messages that make them feel that their business is valued. When done well, it will also help to contribute to positive word of mouth referrals.

However, when not done well . . . word of mouth works both ways.

 

 

About Bob and Alan

with piercing blue eyes Bob Musial

Bob Musial helps clients with business development that encompasses a wide spectrum of disciplines and industries. He frequently uses personalized humor (like the cartoon in this article), to set the stage for conveying a message in a relatable and memorable manner. Bob has a long history of personalized communications built from conversations with contacts, storing “likes and dislikes” information in a custom database designed to deepen relationships. He is the author of Soft Skills, Hard Returns.

 

 

Alan Culler is a retired strategic change consultant and author who worked with multi-billion dollar global companies to help them innovate, integrate, and improve processes, productivity and profitability. He is the author of Traveling the Consulting Road and has a new book coming out soon, Change Leader? Who Me?

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A Friday Some Years Ago:

9:00. Phone rings.

“Hello? Oh, Hi Ken…”

12:00 noon. Phone rings.

“Hi Ken, what’s up?”

4:45 p.m. Phone rings.

“Hi Ken… Say Ken, Are you checking on me?”

“Well, actually, yeah. When I work from home I only get about two hours of work done all day. What with the kids and the dog, trying to work from the kitchen counter, and the TV, and computer games. It’s very distracting. We pay you quite a lot and I was just trying to see if you are actually working.”

“OK, Ken, I get it. But I’m in my office on the second floor of my house. It has a desk, phone, files and computer. There’s no TV. I have no games on my computer. My kids are grown and don’t live with me. The dog is old and goes out before work and after. Besides Ken, I only charge you when I’m actually working. We can review the training I wrote today if you’d like.”

“Well, I’m headed home; can you email it?”

“Sure.”

My client was new to the job and he had inherited a consulting team. To him it was easy to see us working when we were on site, but given his personal experience working from home, he couldn’t imagine us working productively on Friday, when we weren’t on site.

In fact, for certain kinds of head-down individual work, I got a great deal more done on Fridays than I did during the week, when I had to attend meetings with clients and build commitment to change. However, I understood that many managers in offices shared Ken’s experience and the concerns that arose from it.

Then Came Covid

Durin the coronavirus pandemic, workers in factories, healthcare, first responders, retail, and food service risked their lives and office workers learned to be productive “working from home.” Office productivity didn’t suffer as expected and office workers liked the flexibility, the lack of wasted commuting time, and not wearing pants on Zoom calls.

I retired in 2018, so this really didn’t affect me directly. I heard about it from my kids. One time consulting colleagues called to ask how I worked as an independent consultant. People asked about my home office and what the IRS required to deduct the set-up of a home office, (dedicated space, documented use, and expense receipts). I started to see jobs advertised as “remote,” or “hybrid.”

Some people figured out they could work from anywhere and you saw magazine articles of people working from the deck of their beach house. I was always jealous of that because I didn’t have a beach house.

Some people complained about the isolation of Covid-time. As the pandemic died down, some people reminisced about standing on balconies of city apartments banging pots in support of first responders and healthcare workers. Covid was something that affected us all, a unifier after a time of division.

Then Covid was (finally) over

Well, not really over. Covid is still around. We’re just done with it, over it; Covid is so four years ago. For the last four years, there has been a discussion building.

“OK everybody, it’s time to return to work.”

That one pissed off all those workers in factories, healthcare, first responders, retail, and food service who risked their lives.

“We never stopped working.”

So R-T-W became R-T-O, “return to office.”

Some were enthusiastic; some were less so. Sure, there would be less isolation, but more colds and flu (and Covid whispered the risk averse). And then there is wasted commute time. And then there is the flexibility of working when I want. And then there is the fact that I don’t have to stay late because Mary bent my ear about her mom, and Ted just had to relive the highlights of the big game, etc.

“OK, well, what about two days per week?”

“Maybe.”

“Three?”

“I don’t know.”

It’s been a long four years.

This conversation has been slowly accelerating. I must admit that, Boomer dinosaur that I am, I wasn’t particularly won over by the Gen X, Y, Z, Alpha whines about commuting costs and cleaning bills for the pants they would now have to wear. I also thought that some workers were being clearly unreasonable in their demands.

My nephew runs a retail food business and told me about job applicants who asked if they could “do the retail floor job remotely.” Some jobs require face time.

Culture is built by being together. Teams function best if they actually know each other. I began to hypothesize that introverts would want to work at home but extraverts would want to return to the office. It turns out there is no evidence of that.

I have had more and more conversations recently with office workers, people I respect for their intelligence and projected competence, who say, “If they insist on 5-days-in-office, I will leave.” Or “OK, I’ll come in for 9:00 and leave at 5:00, but there is no working till 7:00 and no calls on nights and weekends.”

There have been some famous CEOs who have gone public “R-T-O or else!” At a recent cookout, huddling under a canopy during an inconvenient downpour, I was engaged in conversation with the manager of administration for the board of directors at a money center bank.

“My CEO is friends with another CEO who has drawn a very public line in the sand, but my colleagues, my boss and three quarters of my staff will walk if he enforces the RTO mandate. Most of the board are off site and 90% of my work is email and phone. I have to be here for board meetings and two or three days a week is reasonable. Five is a hard “No!”

I began to think that managers, even CEOs, who insisted on a 5-day RTO mandate, might be driven by their own convenience  ̶  “I want to turn around an give someone a job directly. I don’t want to find out they’re ‘shirking from home’ and have to call them.”

Then, in today’s New York Times, I came upon an article by Adam Grant, et al, at the Wharton Business School, that quotes research, that demonstrates that:

“ One: Return-to-office mandates don’t increase profits by weeding out people who lack commitment. They motivate the most talented people to jump ship. Two: As long as people are together for half the week, remote work isn’t isolating. And three: Hybrid work isn’t bad for performance, innovation or connection. “

Grant et al go on to describe how adamant RTO mandates are most often pushed by narcissistic managers that require constant attention, as demonstrated by the size of their pay packages, offices, and their photos in the annual reports.

So where does that leave RTO?

It depends. There are clearly some jobs that require presence, just like first responders, and retail workers, if your job has a face to the public, well, you gotta face the public. If your job has more individual than team work, you might have more of an argument for remote or hybrid work.

If you are a manager, who just can’t get over the fact that, “Hey, I got up every day and went into the office. I sucked up to my manager and now its my turn,” then maybe look in a mirror. Get over yourself, and see how you can lead change three days a week or on Zoom without any pants.

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