AI Is Already Transforming Sales
Lance Tyson, a recent guest on The 21 Hats Podcast, says his firm is already using artificial intelligence to make its sales pitches more personalized and more efficient.
Good Morning!
Here are today’s highlights:
Despite high interest rates and slower consumer spending, employers keep hiring.
But why are fewer young men working? Is it because of the way we fund unemployment insurance?
More employers are concluding they need to help their employees find affordable housing.
Tax planning: the Trump tax cuts could simply expire at the end of next year.
MANAGEMENT
In this week’s video, Lou Mosca defends his position on golf: “Last week, I shared a video explaining why it's important for people, specifically business owners, to read. In the video, however, I poked some playful fun at golf. It's a sport I enjoy watching from time to time but hitting a little ball around 30 acres of land isn't my cup of tea. But hey, to each his own, right? Jim Kalb responded in defense of golf and offered 10 lessons he’s learned about business on the green, while quoting Anthony Jeselnik along the way. First off, Jim, I commend your taste in comedians. Jeselnik is incredibly funny. But I’m going to stick to my belief that reading is essential. CONNECT WITH LOU
SALES
Lance Tyson says AI is driving sales: “In the realm of sales, every second counts. The faster you can identify leads, understand their needs, and deliver appropriate solutions, the more likely you are to close deals and outpace competitors. AI accelerates this process exponentially. Leveraging machine learning and advanced data analytics, AI sifts through vast amounts of data at breakneck speed to identify patterns, predict behaviors, and personalize interactions in ways that were once only imaginable in science fiction. At my company, we’ve leveraged AI tools to analyze customer data in real time, which has equipped our sales team with the insights needed to target prospects with surgical accuracy. These tools have not only increased our efficiency, but also enhanced the effectiveness of each interaction, ultimately driving up our conversion rates and revenues.”
“The one-size-fits-all approach to sales pitches is now obsolete, replaced by hyper-personalized communication strategies powered by AI. In this new era, AI functions as the undertaker of generic sales pitches, bringing forth a strategy so tailored it feels as though it’s crafted for an audience of one.”
“We initially used AI to identify upsell and cross-sell opportunities within our existing customer base. The AI tools analyzed purchasing patterns and customer feedback to predict future buying behaviors, enabling our sales team to proactively offer tailored solutions. The results were remarkable—a 25-percent increase in customer engagement and a 15-percent rise in sales in just the first quarter after implementation.”
“A significant portion of sales-related activities traditionally involves mundane, time-consuming tasks such as administrative duties, data entry, and lead qualification. AI revolutionizes this aspect by automating these tasks with ruthless efficiency. This automation allows the sales force to dedicate more time to engaging with clients and closing deals.” READ MORE
THE ECONOMY
Hiring in the U.S. remains unexpectedly strong:
HUMAN RESOURCES
Fewer small businesses expect to offer raises: “The share of U.S. small-business owners planning to raise worker compensation fell in May to a more than three-year low, indicative of a cooling jobs market and moderating wage pressures. Some 18 percent of firms said they intend to boost pay in the next three months, down 3 percentage points from April and the smallest share since March 2021, according to data out Thursday from the National Federation of Independent Business. A net 37 percent said they raised compensation, down slightly from the prior month but still historically elevated.”
“The share of small businesses with open positions they’re unable to fill climbed to 42 percent last month, the highest since October. The labor market remains particularly tight in construction, manufacturing and transportation, the report said.” READ MORE
A smaller percentage of men are employed. Is it because of the way we pay for unemployment insurance? “Every business pays a tax into the pool of money that goes to paying unemployment insurance; the tax bill is footed by the employer, not the employee, unlike Social Security, which gets paid for by both. But instead of it being a flat tax, the rate can go up through a system called ‘experience rating.’ The experience in question is how much the employer has laid off workers in the past: More layoffs mean a higher tax rate. The thinking is that the more workers the company has let go, the more it's pushed people to draw on the UI system, so therefore it should pay more in unemployment taxes.”
“The idea behind this is understandable (though most countries don't do UI this way). If you want to discourage businesses from firing people willy-nilly, you penalize those that do. But in practice it's had some unintended consequences.”
“A new paper from Matt Darling, a senior employment-policy analyst at the Niskanen Center, a center-right think tank, argues that the experience-rating system has made some employers reluctant to hire workers they're worried won't work out — and that young men, in particular, are the ones being harmed.”
“‘If you are going to get taxed for any employees that get laid off, you're going to be a lot more hesitant about hiring,’ Darling told me. ‘It isn't the sole driver, but I think it's an important one.’” READ MORE
Employers are finding they need to address affordable housing: “Disney and Universal, two or Orlando’s largest employers, each are pursuing large affordable housing developments in the metro area. It’s a trend popping up from employers around the country — one activists would like to see more of. Disney is teaming with affordable-housing developer The Michaels Organization to deliver a 1,410-unit apartment village in west Orange County with 1,000 units set aside for people earning 80 percent or less of the area median income. Meanwhile, Universal and Wendover Housing Partners are collaborating on Catchlight Crossings, a 1,000-unit mixed-use affordable housing community that will include retail, health services and a tuition-free Bezos Academy preschool.”
“Catchlight is under construction near Universal Orlando Resort in the tourist district. ‘This corridor has more than 100,000 employees commuting in daily,’ said Wendover COO Ryan von Weller. ‘These workers have been priced out of living in Orange County.’”
“Around the country, other employers also have made commitments to battle skyrocketing housing prices: In Seattle, Microsoft is investing $750 million for the creation or preservation of more than 6,000 affordable units. Apple has pledged $2.5 billion to fighting the housing crisis in California. Meta is building 1,730 apartments next to its Menlo Park headquarters.” READ MORE
RETAIL
A lot of Americans think old cars are better than new cars: “Some fear that new, digitally connected vehicles could expose their personal information to the Chinese—or worse, to their insurance agencies. Other modern marvels people seem eager to avoid include stop/start cycling systems, which shut off engines to save fuel when vehicles are stationary, now all but mandatory in new vehicles; continuously variable transmissions (CVTs), commonly found in compact vehicles with small-displacement engines; and diesel exhaust fluid (DEF), a post-combustion exhaust treatment that modern turbo diesel engines can’t live without.”
“Others are just trying to hang on to the good things they’ve got, like three-pedal stick-shifted manual transmissions, virtually extinct in new cars. Or built-in CD players. What unites them is the conviction that older cars are not just cheaper, but better—and that touch screens suck.”
“I cast a wide net on social media last month, posing this question: Name a new car/truck/SUV that is not as desirable as the design it replaces? I got back a long and distinguished list, a roll call of the compromised: Toyota Land Cruiser; Mini Cooper; Ford Mustang; Toyota Crown (née Avalon); Ford F-150; just about any make or model of BMW you can think of. Ouch” READ MORE
TAXES
The Trump tax cuts could just expire: “Huge pieces of Republicans’ 2017 tax law are scheduled to lapse after next year, and Democrats see that deadline as a rare chance to reset fiscal policy and raise taxes on corporations and high-income households. Policymakers and analysts expect a yearlong fight and Christmas-season negotiations to prevent tax increases from hitting most Americans after Dec. 31, 2025, when the law’s cuts end. Lawmakers are starting to think through what leverage they have—and how and when to use it.”
“Progressives and Democrats should clearly lay out conditions, favoring an extension for most Americans but recognizing that the impact of expiration isn’t that large for many low-income households, said Michael Linden, a former Biden administration official. ‘I don’t think we should think of this as a cliff,’ Linden said. ‘Democrats should feel very comfortable drawing a clear line that rich people’s taxes cannot go down.’”
“‘If President Biden allows the Trump tax cuts to expire, he will be responsible for decimating middle America and small businesses with a mountain of new taxes,’ Rep. Jason Smith (R., Mo.), chairman of the House Ways and Means Committee, said on social media Thursday.” READ MORE
THE 21 HATS PODCAST
The Year So Far? It’s Difficult Out There: This week, in episode 198, we get updates from Laura Zander, Sarah Segal, and Jay Goltz. Laura wonders whether the time she’s put into integrating her latest acquisition might have been better spent focusing on her core businesses. Sarah, who has shifted to pursuing smaller clients, asks Laura and Jay to articulate the PR pitch that would interest them. But how do you evaluate the effectiveness of a PR campaign? Does it have to generate sales?
Plus: Jay explains why he views confronting his current business challenges as a matter of triage. He also says that if he could write a check for $200,000 and solve his technology problems, he would do it in a heartbeat. Any takers out there?
You can subscribe to the 21 Hats Podcast wherever you get podcasts.
IN CASE YOU MISSED IT
Kurt Wilkin, a long-time friend of 21 Hats, recently invited me on his podcast. Among other things, he asked me about my very brief time as a baseball coach in the Dominican Republic. He also asked me what question I was hoping he would not ask me. For reasons that escape me, I chose to answer him.
Thanks for reading, everyone. — Loren