Algorithms have become ubiquitous, influencing nearly every decision-making process in our daily lives—from job applications to mortgage approvals. Despite their efficiency and consistency, one pressing question remains: how do consumers feel about decisions made by robots (bots) versus humans?
Recent research reveals a surprising twist: while unfavorable decisions (e.g., rejections) elicit similar consumer reactions regardless of the source, favorable decisions (e.g., acceptances) spark notably less enthusiasm when made by an algorithm than by a human.
This insight challenges assumptions many managers and marketers hold, and it underscores the need for a nuanced approach to integrating algorithms into consumer-facing interactions.
As a Top Product Marketing Voice, with years of experience driving revenue growth (+124% U.S. revenue growth) and improving customer retention (+31% retention boost), I’ve seen firsthand how understanding consumer sentiment can make or break a product strategy.
Let’s explore key takeaways from this research and how marketers can address the human-bot tension effectively.
Algorithm vs. human: The emotional divide
At its core, the difference in consumer reactions to algorithmic and human decisions lies in attribution. When receiving favorable decisions from a human, consumers tend to internalize the outcome, interpreting it as a reflection of their unique value or worth. This personal validation fosters stronger emotional connections.
On the other hand, favorable decisions delivered by algorithms often feel transactional. Consumers struggle to ascribe the same personal meaning, leading to a muted positive response.
In the case of unfavorable decisions, however, consumers react similarly to both algorithms and humans. Rejections are often externalized—blamed on biases, flawed criteria, or systemic issues—regardless of who or what delivers the news.
Christina Diane Warner
What this means for product marketers
Marketers increasingly rely on algorithms for decision-making at scale, but this research highlights the importance of humanizing these processes. Drawing from my experience leading global product marketing initiatives, here are three actionable strategies:
1. Humanize favorable outcomes
Since consumers respond less positively to algorithmic acceptances, marketers should focus on making these interactions feel personal and empathetic. Simple adjustments to messaging can bridge the emotional gap.
Instead of:
“Approved by our system.”
Try:
“Congratulations! After carefully reviewing your application, we’re excited to share this decision with you.”
Even automated messages can adopt a tone that mimics human interaction. Alternatively, hybrid models, where algorithms handle evaluations but humans communicate results, can boost consumer satisfaction.
Case in action:
During my tenure at one company, we leveraged AI to analyze client needs but paired it with personal outreach from our team. This dual approach contributed to our 90% global revenue growth, ensuring clients felt valued beyond the data.
Meenal Relekar
2. De-personalize rejections to preserve goodwill
Consumers externalize unfavorable decisions, so marketers can mitigate negative emotions by emphasizing objective criteria and offering actionable next steps. Transparency about the process makes rejection feel less like a personal failure.
Example:
“Based on current eligibility criteria, we cannot approve your request at this time. We encourage you to reapply once these factors improve.”
Providing constructive feedback or alternatives, such as resources for improvement, shifts the narrative from rejection to opportunity.
Case in action:
At Amazon, our team tackled user churn by introducing personalized improvement recommendations based on behavioral data. This approach didn’t just soften the blow of cancellations—it drove a 31% improvement in customer retention.
3. Educate consumers about algorithms
A lack of understanding often fuels consumer skepticism toward algorithmic decisions. By demystifying how algorithms work, companies can build trust and reduce negative reactions.
For instance, a fintech app could explain:
“Our algorithm uses industry-leading data models to analyze your profile and provide decisions tailored to your unique circumstances. Here’s how it works...”
Transparency instills confidence, making it easier for consumers to accept decisions—whether favorable or not.
Nitin Kartik
Case in action:
During my time at TomTom, we introduced user-friendly dashboards to explain how our navigation algorithms optimized routes. This increased user trust, contributing to over $40 million in incremental sales from new services.
Managerial blind spots: Aligning expectations with reality
One striking finding from the research was the disconnect between managers’ predictions and consumer reactions. Managers often overestimate how positively consumers will respond to algorithmic decisions, particularly favorable ones.
To close this gap, managers need to adopt a more consumer-centric mindset. Here’s how:
- Prioritize user experience design: Make algorithmic interactions feel personal and intuitive.
- Monitor sentiment: Regularly collect and analyze consumer feedback to refine messaging and delivery.
- Invest in human touchpoints: Even as automation scales, human intervention in key moments can enhance emotional resonance.
Embracing a hybrid future
As AI adoption accelerates, the solution isn’t to choose between humans and bots but to integrate both in ways that maximize their strengths. Algorithms offer unparalleled efficiency and consistency, while humans bring empathy and emotional intelligence to the table.
Imagine a healthcare scenario where an algorithm diagnoses a patient with precision, but a doctor delivers the results with compassion and discusses the treatment plan. This balance ensures both accuracy and emotional support.
For product marketers, the same principle applies. Whether it’s a subscription service, SaaS product, or fintech app, the winning strategy lies in pairing data-driven decision-making with human-centric communication.
Ben Munroe
Lessons for the product marketing community
The findings on consumer reactions to algorithmic versus human decisions offer profound lessons for product marketers. Here’s what we can take away:
- Human touch enhances loyalty: Consumers value personalization and empathy. Even small efforts to humanize interactions can foster deeper emotional connections.
- Transparency builds trust: Educating users about how algorithms work increases acceptance and reduces skepticism.
- Emotional context matters: It’s not just about the outcome of a decision but how it’s delivered. The messenger plays a critical role in shaping perceptions.
As someone who’s worked on both sides of the equation—leveraging cutting-edge algorithms and crafting empathetic marketing strategies—I’ve seen the transformative impact of balancing efficiency with humanity.
Final thoughts
The question isn’t whether consumers will interact with algorithms—they already do. The real question is how marketers can design these interactions to resonate emotionally and drive lasting loyalty.
By understanding the nuances of consumer reactions and implementing strategies that humanize algorithmic successes, depersonalize rejections, and build trust through education, product marketers can thrive in this hybrid world.
As I reflect on my journey—from driving $40M in new revenue streams at TomTom to creating award-winning retention strategies at Amazon—one truth stands out: technology may be the engine, but empathy is the fuel.
The future of product marketing lies in finding harmony between the bot and the human. Let’s embrace it.
Product marketing insider
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