At SatisFacts, we’re dedicated to understanding the ever-changing dynamics of renter expectations. Recently, we conducted focus groups with renters nationwide to explore the impact artificial intelligence (AI) has on their perception of customer service. Our findings illuminate the complex interplay between technology and human connection, offering valuable insights for multifamily operators seeking to enhance their residents’ living experiences.
From Science Fiction to Practical Applications
When thinking about artificial intelligence, popular culture often conjures images of human-like cognitive abilities akin to those seen in science fiction classics like Bicentennial Man or Star Trek. However, the reality of AI today is far more nuanced. Artificial narrow intelligence, which focuses on specific tasks within limited contexts, is becoming more prevalent in everyday applications such as Siri, chatbots, and recommendation systems. This distinction underscores AI’s practicality and tangible benefits in multifamily operations, moving us away from science fiction and into the reality of operational efficiency and enhanced resident and employee experiences.
The Role of AI in Multifamily Marketing
Today, artificial intelligence (AI) already plays a pivotal role in multifamily marketing across various applications. Predictive analytics and lead scoring are commonplace within customer relationship management (CRM) systems, enabling operators to forecast and prioritize leads effectively. Chatbots have become ubiquitous on multifamily websites, offering instant assistance and streamlining renter interactions. Moreover, content recommendation and personalization enhance engagement in email marketing campaigns, optimizing the delivery of relevant content to recipients. Paid marketing campaigns, including social media and Google ads, leverage automated systems to serve targeted audiences with higher-performing ads. However, dynamic pricing may be the most significant application of AI in multifamily. By utilizing algorithms to analyze multiple inputs, operators have optimized rental rates dynamically, ensuring competitive pricing and maximizing revenue potential.
What truly has multifamily executives buzzing with excitement today is the emergence of large language models (LLMs). These advanced AI systems possess the remarkable ability to understand and generate human-like text, offering multifamily operators a powerful tool for enhancing customer experiences. From answering queries and generating content to engaging in dialogue, LLMs represent a paradigm shift in how operators think about their approach to resident interactions and customer service.
Growing Public Concern
As multifamily operators venture into introducing AI solutions, it’s vital to acknowledge the growing public concern surrounding the increased use of AI in daily life. According to a recent Pew Research Center study, about half of Americans express more concern than excitement about this trend. This sentiment has seen a significant uptick, rising by 14 percentage points since last year to the current figure of 52%, up from 38% in December 2022.
Understanding this backdrop is crucial as operators embark on integrating AI into multifamily leasing workflows, particularly those interacting directly with renters. The goal is to elevate the renter experience, not substitute human connection. Applications must be tailored to renters’ needs, akin to a well-tailored suit. Our interviews with renters across the country echoed this sentiment, with many expressing a preference for human involvement in their leasing process. As one renter aptly put it, “Even though it’s a rental or a lease, I still want the human factor involved where I live so that there’s an actual person overseeing everything and that things are resolved with the human element to it.” Another renter voiced concern about the potential for fully AI-managed buildings, “I would be worried about signing a lease with a property management agency in a building where everything is AI self-served,” highlighting the importance of maintaining a balance between technology and human touch in multifamily operations.
AI In Customer Support
Our research also sheds light on renter preferences regarding customer service and interacting with AI versus human representatives. When analyzing consumer data from a survey conducted by SurveyMonkey on AI and customer service, a striking trend emerged: a resounding 90% of respondents expressed a preference for human customer service over chatbots or AI. Further examination of Net Promoter Scores (NPS) revealed a significant disparity, with NPS scores for human service agents surpassing those for AI by 72 points. Respondents cited various reasons for their preference for human interaction, including humans’ better understanding of their needs (61%), provision of more thorough explanations (53%), decreased likelihood of frustration (52%), and offering more options to address their problems (51%).
Our own research at SatisFacts corroborates these findings, with renters overwhelmingly leaning towards human customer service. As one renter said, “I always like to speak to a human…I just feel like it helps move things along quicker, and you get better service.” In our Biennial Online Renter Study, we also observed that renters rated the importance of automated chat significantly lower (2.68) than the ability to easily communicate with the apartment community staff (4.56), indicating a clear preference for human interaction.
One plausible explanation for this preference is the current limitations of the technology deployed on community websites today, which often fail to address even the most straightforward questions, such as breed restrictions. It’s evident that the human element remains integral to the renter experience, and while AI shows promise, its current limitations necessitate human intervention for addressing even simple queries and ensuring satisfactory resolution.
Leveraging AI for Enhanced Leasing Experiences
When inquiring about consumer perspectives on how AI could enhance their experience, respondents to the Survey Monkey study expressed interest in specific functionalities. Among respondents, 52% highlighted the desire for AI to guide them through product experiences, while 47% wished for personalized deals, and 42% sought AI-driven product recommendations.
Aligning with these consumer sentiments, our conversations with renters shed light on similar expectations regarding AI’s role in improving the leasing process. For instance, a 28-year-old female renter emphasized the potential for AI to address minor inquiries or requests that may not necessitate direct human interaction. Echoing this sentiment, another 31-year-old female renter envisioned AI expediting documentation processes and completing essential paperwork faster.
Responding to Online Reviews
While consumers and renters recognize AI’s potential to enhance certain aspects of their purchase and leasing journeys, it’s important to note that both groups remain wary of AI’s involvement in responding to online reviews. This insight underscores the delicate balance between leveraging AI for efficiency and preserving authentic human engagement, particularly in critical areas like reputation management.
Our Biennial Online Renter Study looked into the impact of AI technology on renter perceptions of apartment communities when responding to online reviews. Across age groups, respondents expressed a clear aversion to AI-generated responses, with the sentiment rating dropping from 2.54 to 2.04 on a scale where neutrality sits at 3, indicating a negative perception, particularly among renters paying higher rents. Further insights from our focus group discussions shed light on the nuanced feelings toward AI in online review responses.
Comments from focus group participants highlighted concerns about feeling disheartened or perceiving AI responses as a copout. While some renters expressed skepticism about AI’s influence on their perception, they emphasized the importance of full transparency regarding AI involvement in crafting responses. This nuanced feedback underscores the delicate balance between leveraging AI for efficiency and maintaining authenticity in managing online reputation, highlighting the need for transparent communication to ensure renter trust and satisfaction.
Striking the Balance Between Innovation and Empathy
The integration of AI into multifamily operations represents a delicate balancing act. While AI offers undeniable benefits in terms of efficiency and automation, it must complement, rather than replace, the human touch that defines exceptional resident experiences. By prioritizing transparency, empathy, and collaboration, multifamily operators can navigate this intersection with confidence, ensuring that technology enhances, rather than diminishes, resident satisfaction.
At SatisFacts, we remain steadfast in our commitment to empowering multifamily operators with the research-backed knowledge and tools needed to navigate this evolving landscape successfully. If you want to learn more about how your residents feel about the technology you’ve implemented and its impact on resident and employee satisfaction, contact the SatisFacts & ApartmentRatings education team for a complimentary technology survey consultation.