Human presence creates value in people's minds

Refocusing products and services on the power of human contact

Everywhere you turn these days, it appears that modern commerce is geared to isolate people from one another. Smartphones keep our attention focused on the virtual world, internet retail allows us to explore and shop without leaving the house, and automated tellers and cashiers appear to be engineered to eliminate all human interaction. However, research indicates that businesses may be overlooking a vital technique—refocusing their products and services on the power of human contact—which offers an opportunity to produce significant social and economic benefit.

When people contemplate what it means to be human, they often think of two core capacities: the ability to feel (conscious experience) and to have thoughts and intentions (agency). According to the study, human-to-human interaction is critical to this concept. As a result, firms that attempt to separate their clients from other humans are missing an important strategy. Refocusing the sales process on services that leverage the power of human interaction offers the potential to create tremendous value.

Human interaction possesses a magical power. It gives experiences and things unique relevance and raises people's perceptions of their value. Smart firms, rather than continuing to automate their services at all costs, would do well to recognize how human presence creates value in the minds of consumers. There are at least three main reasons why human interaction matters.

Intent

Customers want to believe that their interactions with businesses are the result of human agency rather than abstract automation. Sensing human intention at the heart of the interaction is crucial because people often associate intentionality with purpose and significance. The presence of a human indicates intent, making the encounter more meaningful. Several studies have demonstrated the value of human connection throughout the product selection process. Other research reveals that individuals will pay more for handcrafted products such as greeting cards, jewelry, scarves, and knives than for machine-produced products because they believe the handmade items are made with intentional love.

Effort

Another study found that increased satisfaction happens in part because individuals value items depending on the perceived effort put into manufacturing them; human connection makes the effort evident. This tendency, known as the "effort heuristic," was initially demonstrated in a study indicating that people value a poem or artwork more when they realize it was created with more (vs. less) effort. As a result, businesses could gain a lot by simply improving what is known as "operational transparency," which indicates the human effort required in their services.

Authenticity

It is a studied phenomenon that physical contact influences how much people pay at celebrity auctions. Why do people pay more for items if they have contact with their owners? And why does physical interaction impact the willingness to purchase such items? According to the research, these tendencies result from people’s belief in “positive contagion"—the notion that through contact, the owner can instill an object with an authentic essence. Authenticity, like effort and intentionality, creates value. Accordingly, this work reveals the reason why people prefer purchasing original works of art or branded garments to perfect duplicates. It is because of the perceived authenticity imparted through the artist’s or designer’s touch.

Companies recognize the value of authenticity, whether it is an expensive fashion brand patenting its bag designs, companies like Harley Davidson trademarking their engine sound, or luxury watchmakers like AP that simply provide a certificate of authenticity. However, it turns out that one simple way to create authenticity is to emphasize human involvement in the product or service.

Given the significance that people associate with human contact, companies can benefit by making the human touch more visible in their products and services. A human touch signals that the company operates with an intentional purpose, works harder, and acts authentically, all of which create meaning in the minds of consumers. Even in an increasingly human-less age, human interactions still matter for consumers.