Are today’s brands becoming the Captain Ahab of data, obsessively bent on finding their Moby Dick — a.k.a. the consumer — at all costs? Algorithms inform advertisers where their consumers are, where they came from and where they’re most likely to be next. So without prejudice, ad serving software and programmatic buying are now throwing their tethered spears at consumers from site to site to site, hoping that they will catch their white whale and close a sale.
But we should all remember that Ahab’s obsession left behind only one survivor to tell the tale of his failure.
Recently, I googled “fishing getaway” to pass some lazy rainy Sunday afternoon time. Since doing so, I have been unceremoniously served the exact same ad on every single site I’ve visited. The brand will go unnamed to protect the “innocent” because they are not by a long shot alone in this pursuit of repetitive and meaningless connection. Nor is this anecdote limited to display advertising.
I believe the public consciousness is awakening to the tyranny of the algorithm. Our private data is increasingly becoming the topic of public debate around the yet to be enforced, updated (2015) amendments (Bill S-4) of Canada’s federal Personal Information Protection and Electronic Documents Act (PIPEDA). Recall Bell’s $750M class-action lawsuit initiated in April of last year.
Understanding the implications, such as permitting the disclosure of an individual’s personal information without their knowledge or consent in certain circumstances, will make this an interesting time for retailers, many of whom are still relatively new to the online world and struggling to make it profitable.
Perhaps it is time for them to go back to the core of what they are good at — understanding what people need and meeting their requirements.
When building a bricks-and-mortar retail experience, I’m sure retailers are informed by research, mounds of historical data and, yes, by algorithms that will predict optimal traffic flow and merchandizing. But retailers also understand that shoppers are looking to solve problems and that is what their floor staff do so well. A recent trip to Home Hardware reminded me of just how important this part of the customer experience is. I went in with a problem and they solved it for me: I walked out with a fully equipped tackle box, ready to catch any fish.
What does a similar experience online currently look like? When I bought a patch on Amazon to repair a waterproof raincoat, I was subsequently served ads and recommendations for alternative products even though I had bought what I needed and already solved the problem.
As we all seek automation in operations, we must not lose sight of the fact that our customers are human. While e-commerce giants will continue to grow (Amazon and Alibaba), those retailers that exist in high-touch retail environments cannot forget that the humanity of in-store interactions and the exchange that occurs in the face of meaningful, well-trained dialogue must also permeate the algorithm.
Brand dialogue, whether it is a conversation inside a store or advertising, must stand for something more than a transaction. It must evoke emotion, connection, empathy, community and, when possible, friendship… just like my relationship with Home Hardware.
The algorithm is important, but it’s not everything.
Matt Cammaert is the president of Cheil Canada
