There has been much talk about customers lately as a result of the pandemic.
That is right and understandable, given the fragile nature of business and society today. Customers are your path to recovery.
But the future may hold something different.
What if your best customers in the future aren’t even human? Will they be better for your business?
Consider the emergence of “Machine Customers” – non-human economic actors that obtain goods or services in exchange for payment. Think of smart appliances, Amazon Alexa, and autonomous cars as the leading edge of this trend.
Mark Raskino and I explore this question in Why Machine Customers May Be Better Than Human Customers, the latest in an ongoing series of research notes and presentations exploring the topic of machine customers (also known as Things as Customers).
Yes, of course – in two key ways:
Machine customers will buy based on data and logic, which will upend traditional sales and marketing practices. A large amount of conventional marketing and sales excellence relies on human initiative, emotion, and personal contact or relationships. How will this work if you are marketing to or selling to machines? Machines don’t have feelings. They will behave logically and rationally based on rules and programming.
Machine customers may be better than humans in some cases. They can process large amounts of data from a large variety of inputs, based on today’s experience with AI. They will carefully collect and weigh the data to make informed decisions for their human owners based on logic and rules. In the case of toilet paper, a human may just be looking for a familiar brand, value, comfort, availability, and maybe even images of babies and clouds. A machine would be more logical. They would analyze dispenser compatibility, enzyme/skin sensitivity information, hard water performance, and cost per foot. Machine customers don’t need to be delighted, so resources usually spent on exceeding human customer needs are used to make the machine transactions seamless.
Machine customers will be more reliable than human customers, resulting in more consistent financial benefits for companies. At home, do you forget to buy laundry detergent or bring your car in for a check-up? Does a competing demand at work push a planned purchase lower in the priority queue until you have to request emergency delivery? In truth, the purchase journey for us as human customers may not be as linear as we think. We are all guilty of these lapses at one time or another (see diagram below).
Machine customers may be better than humans where reliability is essential. Much like auto-replenishment is today. But it is more than that. We think machine customers will minimize waste by ordering exactly what customers need at the right time and be more predictable. This could have a positive impact on sustainability. Purchases could take the form of smaller sizes or just-in-time replenishment, depending on availability from the provider. We also believe machines are better able to find substitute products that may be geographically closer with lower shipping costs.
The possibilities (and risks) are endless, but the growth potential is real. We believe machine customers will be a viable growth opportunity for organizations as they emerge from the aftermath of the pandemic and into the next decade.
What will other ways machine customers be better than humans? We’d love to hear your thoughts.
View Free, Relevant Gartner Research
Gartner's research helps you cut through the complexity and deliver the knowledge you need to make the right decisions quickly, and with confidence.Read Free Gartner Research
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.