AI in Advertising: Customer Experience Insights from Toys ‘R’ Us Ad Controversy

AI in Advertising: Customer Experience Insights from Toys ‘R’ Us Ad Controversy

A Wake-Up Call for Customer Experience Innovators

Did you see the Toys “R” Us AI ad that’s got everyone talking? This isn’t just another tech debate – it’s a wake-up call for those dedicated to making customer experience a brand differentiator.

The Situation

Toys “R” Us, a once-dominant player in the toy industry, has been striving to regain its foothold in the market after years of financial struggles and reduced physical presence. To rejuvenate its brand and connect with a new generation of consumers, the company turned to AI technology. The advertisement, which premiered at the 2024 Cannes Lions Festival, was a leap ahead in using cutting-edge technology to tell the brand’s story in a unique way​.

The AI-Generated Ad Controversy

Despite the initial excitement surrounding the AI-generated ad, it quickly became a topic of debate. The advertisement was criticized for several reasons:

Technical Execution: Many viewers found the ad unsettling due to noticeable inconsistencies in the characters’ appearances, leading to a lack of visual continuity. Critics pointed out that the AI-generated content often fell into the “uncanny valley,” where human-like figures appear eerily unnatural and disconcerting​ (Cointelegraph)​.

Energy Consumption: Concerns were also raised about the environmental impact of producing AI-generated content. Critics argued that creating such ads consumes significantly more energy than traditional filming methods, raising questions about the sustainability of using AI for commercial purposes​ (The Daily Dot)​.

Economic Implications: The use of AI in place of human actors and traditional production methods was seen by some as a cost-cutting measure that undermines the quality of the final product. This perception was particularly damaging for a brand like Toys “R” Us, which is already struggling to maintain its market relevance​ (The Daily Dot)​.

My Advice For Customer-Centric Business leaders:

Don’t Jump on the AI Bandwagon Without a Game Plan.

The mixed reactions to the Toys “R” Us AI-generated ad provide several important lessons for businesses looking to innovate in their customer experience strategies:

  1. Technology Must Enhance, Not Replace, Human Creativity

While AI offers powerful tools for creating content, it can be used to augment human creativity rather than replace it. The ad’s failure to achieve visual consistency highlights the current limitations of AI technology. Businesses must ensure that their use of AI complements human efforts to produce high-quality, engaging content.

  1. Consider the Customer’s Emotional Response

Customer experience is deeply tied to emotional engagement. The unsettling nature of the AI-generated ad detracted from the nostalgic and joyful feelings that Toys “R” Us aimed to evoke. Companies must prioritize their audience’s emotional reactions when implementing new technologies, ensuring that innovations do not alienate their core customer base.

  1. Sustainability Matters

With growing awareness of environmental issues, businesses need to consider the sustainability of their operations, including marketing and advertising. The criticism of the ad’s energy consumption serves as a reminder that consumers are increasingly attentive to the ecological impact of the brands they support. Companies should strive for eco-friendly practices even when adopting new technologies.

  1. Authenticity is Key

In the digital age, authenticity remains a crucial component of brand loyalty. The perception that Toys “R” Us used AI to cut costs rather than to enhance the customer experience damaged the brand’s image. Transparency about the use of technology and its purpose in improving customer engagement can help maintain trust and authenticity.

  1. Innovation Must Align with Brand Values

Finally, any innovation in customer experience must align with the brand’s core values and mission. Toys “R” Us aimed to honor its founder’s legacy and evoke nostalgia, but the execution fell short of these goals. Businesses must ensure their innovative efforts harmonize with their brand’s identity and values.

Conclusion: Embracing AI Wisely To Transform Customer Experiences

The Toys “R” Us ad might not have hit all the right notes, but it’s sparking an invaluable conversation about AI’s role in advertising and customer experience.

How can you leverage AI to not just enhance but advance your CX strategies? Are you taking risks that could redefine your market position and create memorable customer service experiences?

The real threat isn’t in experimenting with AI; it’s in standing still while competitors innovate. The brands that will succeed are those pushing boundaries and keeping their customers at the center.

Remember, Doing CX Right means using the latest tech wisely to forge meaningful connections. Keep disrupting, keep innovating, and never settle for the status quo. Challenge norms, embrace AI thoughtfully, and lead the way in transforming customer experience.

Source: Telgraph on Youtube.

Learn How To Deliver Better Customer Service Through An Engaged and Valued Workforce.  Watch My Linkedin Learning Self-Paced Course

Marketing & Customer Experience Trends From A CMO Executive Lens

Marketing & Customer Experience Trends From A CMO Executive Lens

Doing CX Right podcast show on Spotify with host Stacy Sherman
DoingCXRight-Podcast-on-Amazon-with-host-Stacy-Sherman.
Doing Customer Experience (CX) Right Podcast - Hosted by Stacy Sherman
Doing CX Right podcast show on iHeart Radio with host Stacy Sherman

What is the role of Marketing in the digital world? How does it relate to customer experience (CX) and creating real brand loyalty? Stacy Sherman interviews Jackie Yeaney, 6x CMO, to bring you answers to these questions and more as Marketing is no longer just about campaigns. It’s about telling stories, building brands, and creating intentional journeys for customers.

Additional topics include the connection between Marketing and CX and whether one can be considered the new version of the other. Also, the ideal organizational design and future trends that brand leaders must plan for to succeed in a high-tech competitive landscape.

Press Play To WATCH the Interview

About Jackie Yeaney- Marketing and Customer Experience Leader

Recently EVP of Marketing at Tableau, Jackie Yeaney was responsible for empowering and educating more people about the power of seeing and understanding data. She has more than 20 years of experience as a marketing thought leader navigating the intersection of brand, customer experience, and data analytics.

Jackie started her career as an officer in the US Air Force, and then spent several years as a management consultant at the Boston Consulting Group. She has made a big impact at reputable brands like Delta Air Lines and Red Hat. Jackie holds a B.S. in electrical engineering from Rensselaer Polytechnic Institute and an MBA from the Massachusetts Institute of Technology.

Learn more and follow Jackie at: Twitter and LinkedIn.

About Stacy Sherman: Founder of Doing CX Right®‬

An award-winning certified marketing and customer experience (CX) corporate executive, speaker, author, and podcaster, known for DoingCXRight®. She created a Heart & Science™ framework that accelerates customer loyalty, referrals, and revenue, fueled by engaged employees and customer service representatives. Stacy’s been in the trenches improving experiences as a brand differentiator for 20+ years, working at companies of all sizes and industries, like Liveops, Schindler elevator, Verizon, Martha Steward Craft, AT&T++.   Stacy is on a mission to help people DOING, not just TALKING about CX, so real human connections & happiness exist. Continue reading bio >here.

Fireproof Strategies To Lead Teams And Thrive Through Disruption

Fireproof Strategies To Lead Teams And Thrive Through Disruption

Doing CX Right podcast show on Spotify with host Stacy Sherman
DoingCXRight-Podcast-on-Amazon-with-host-Stacy-Sherman.
Doing Customer Experience (CX) Right Podcast - Hosted by Stacy Sherman
Doing CX Right podcast show on iHeart Radio with host Stacy Sherman

Fireproof Strategies For Business and Personal Success

We all face stressful situations. Some put out fires literally, like David Hollenbach, who spent 23 years in public safety, while others do so figuratively in the workplace. David shares fireproof strategies to thrive through disruption, overcome limiting beliefs, create a plan for the future, and leave an intentional legacy. You’ll hear personal stories and captivating case studies to help you be an effective leader and communicator to improve experiences for employees, customers, citizens ~ all humans. 

Listen, learn and pay it forward.

About Battalion Chief David Hollenbach

Battalion Chief David Hollenbach (retired) is the author of “Fireproof: Your Grand Strategy for Transforming Failure into Fuel for Your Future.” He is a motivational speaker, coach, and mentor. He owns and operates David Hollenbach Consulting, LLC, and hosts the popular podcast “From Embers to Excellence.”

During his 23-year career in the fire service, he served as a

  • Firefighter
  • Apparatus Driver/Pump-Operator/Engineer
  • Company Officer/Lieutenant
  • Battalion Chief in Operations
  • Chief of Special Operations
  • Critical Incident Stress Management (CISM) peer counselor
  • Public Safety Rescue Diver
  • Coordinator and developer of his department’s first leadership development program

David Hollenbach is a veteran of the United States Navy with a Master’s Degree in Public Administration from Barry University. A major focus of research for his capstone was how strong, positive leadership can influence the culture of a large organization.

While studying at Barry University, he published “The Firefighter’s Creed” and “Women in the Fire Service: A Diverse Culture Leads to a Successful Culture,” an article highlighting the importance of gender diversity within the fire service in Fire Engineering Magazine.

He has spent years as an instructor, coach, and mentor, helping others define and realize success. Although he no longer works as a servant to the community, his passion for service to others remains stronger than ever.

Learn more: LinkedIn. Website.

About Stacy Sherman: Founder of Doing CX Right®‬

An award-winning certified marketing and customer experience (CX) corporate executive, speaker, author, and podcaster, known for DoingCXRight®. She created a Heart & Science™ framework that accelerates customer loyalty, referrals, and revenue, fueled by engaged employees and customer service representatives. Stacy’s been in the trenches improving experiences as a brand differentiator for 20+ years, working at companies of all sizes and industries, like Liveops, Schindler elevator, Verizon, Martha Steward Craft, AT&T++.   Stacy is on a mission to help people DOING, not just TALKING about CX, so real human connections & happiness exist. Continue reading bio >here.

Is customer experience replacing advertising at biggest brands?

Is customer experience replacing advertising at biggest brands?

Is product experience becoming more important than advertising? Many business leaders are saying yes, as we’re now living in an experience or expectation-based economy where the quality of experiences delivered to customers determines company performance. 

My featured article guest, Jack Ashdown, shares throught-provoking views about the role of advertising and shifts in approach to acquire new customers and drive loyalty. I encourage you to read and share your perspective.

Is CX Replacing Advertising?

When was the last time you saw an ad for Tesla? That’s right, you haven’t, because Elon Musk believes the brand’s cash should be continually invested in innovation, not creative marketing.

Apart from Musk’s idiosyncratic and highly personal approach to marketing, Tesla has thrived in large part due to the UX experience of its cars. In some models, dials and levers have been reduced down to a steering wheel and iPad-style screen integrating displayed driving, navigation, and external internet access.

Digital disruptors like Uber, Airbnb, and Deliveroo have also chosen this route, making the decision to invest relatively little in advertising – particularly in the early growth stages of the business. Instead, ground-breaking concepts and elegant service design enabled them to transform entire markets.

This approach concentrates on the power of word-of-mouth backed by repeated positive customer interactions at all touchpoints. Brands such as Trainline harnessed this model, relying on organic growth through an excellent CX strategy.

It can be seen everywhere, even in the previously niche world of the stock market investment. Robinhood provides a cheap, easy-to-use trading alternative and reached 18 million accounts in March 2021, a year-on-year increase of 151%. It achieved such stellar growth by creating an app that took many design cues from social platforms and essentially gamified stock trading – enabling activist private traders to take direct action to support companies such as GameStop and AMC in the process.

By 2023 businesses worldwide are predicted to be investing almost two trillion dollars in digital transformation projects. In comparison, they’ll be spending a relatively humble $600 billion on advertising.

A big slice of the money spent on digital transformation will be focussed on digital services and consumer engagement or interaction. The global customer experience management (CXM) market’s CAGR is estimated to be around 12%, which should result in the market being worth around 14.5 billion by 2025.

This begs the question; if the brands that succeed in shaping or outperforming markets are those that step ahead of the pack with unique experiences and products rather than those investing heavily in advertising, will the center of the creative universe shift from advertising towards CX-orientated creativity leveraging data, UX and service innovation over the coming decade?

The CX medium is the advertising message

This huge predicted investment in digital transformation speaks to the emergence of fundamental changes in the way that organizations and businesses, new and old, are thinking about how to either generate sales or achieve long-term brand loyalty.

The digital economy is creating an ever more powerful cycle of digitization with, on one hand, ever better and faster digital products, services, and devices, and on the other the huge pressure on organizations to use technology to transform their operations.

 

Stacy’s advice for advertising & branding leaders: 

*Infuse the customer voice in EVERY business decision. No exceptions.
*Focus on creating better experiences. You don’t have to be  Tesla to gain a competitive edge.
*Hire and collaborate with customer experience (CX) and user experience (UX)  experts. It must be intentional.  

Read more about CX trends and expert views on debatable topics. 

*Should the Chief Experience Officer Oversee Marketing?

*What’s The Fate Of A Customer Experience Officer (CXO)

*Is Customer Experience The New Marketing? Is Marketing the New CX?