Decision Fatigue Broke Marketing—Here's How to Fix It

Originally published on AdAge.

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“Money can't buy you happiness” is a long-standing part of American vernacular. From the standpoint of cognitive science, it’s also false.

Spending money does make people happy—at least in the moment. Making purchases stimulates the pleasure center of the human brain, and the chemicals released in that process give people feelings of joy. However, while buying things may make one happy, the seemingly limitless choices available to consumers have quite the opposite effect.

When our brains are exhausted by shopping—what scientists call decision fatigue—we lose much of the ability to make intelligent choices and instead lean on our emotions. Decision fatigue is not a trend or a new consumer phenomenon. It is a scientific reality.

Once decision fatigue has disabled the brain's ability to discern good from bad, an impulse item often appears—bright, shiny, there for the taking, and requiring nothing more than the instantaneous swipe of a credit card (or tap of a phone screen). It's why stores generally put their unhealthiest snack items at checkout.

The endorphins released at that moment stay in the system long enough for the consumer to get home and realize they don't need one more pair of sunglasses.

With so many options in every consumer category, shoppers’ brains are more exhausted than ever. This has resulted in the percentage of impulse shoppers zooming from 40% to more than 80% over the past decade. And the amount people spend on impulse has doubled to more than $300—so it's more than junk food they're buying.

Consumers now spend more money with less discernment than ever in modern history. The trend is bad news for brands because when people buy in the moment, they are not comparing features, prices, reviews or product quality. Ultimately, it's a bad deal for consumers who often find out too late that they spent their money the wrong way.

How does a marketer get out of this cycle? By reconsidering the very nature of how marketing works.

For at least 100 years, marketers have seen a consumer's journey with a brand as predictable and linear: awareness, interest, decision to buy and action—often described as AIDA. Brand preference was driven by the equally venerable three P’s: product, price and promotion.

Now that most purchases are spontaneous, consumers across categories often go directly from awareness to action in a click without comparing products, prices or promotions. Shoppers aren’t selecting among leading brands in a category, as much as they are deciding between the thrill of “now” and the frustration of “wait.” That luxury sales are booming in a tight economy proves that the appeal of “now” has never been greater.

Eighty percent of consumers say they're more likely to buy from brands that understand their needs, giving marketers a new joy equation to target. A brand that understands consumers’ practical and emotional needs can preempt their impulse to buy. Before the shopper sees those Ray-Bans near the cashier, they're already rocking that brand’s signature shades—and perhaps a perfect pair for driving, another for the beach and another that they keep on hand “just in case.” Impulse thwarted. Happy brand. Happy customer.

The best part about this bond between brands and customers is that it also counteracts much of what many marketers have observed as a reduction in overall consumer loyalty. People who feel emotionally connected to a brand spend more, remain twice as loyal and 71% will recommend that brand to a friend. So, how can emotional connection reverse the impact of the impulse era on marketing performance? It starts with marketers challenging themselves with a few questions that provide game-changing insight into the people who buy from them:

Do I know my customers?

Do I know why people buy my product? Of equal importance, do I know why people buy from my competitors?

What emotional needs drive choice in my category?

Considering 90% of all spending decisions are emotional, do my brand communications and experiences reflect that understanding?

Where does my product fit in customers' lives?

How can my brand give shoppers more of what they need in the moments that matter—and preempt impulse purchases before they happen?

With the pressures of brand marketing squeezing budgets and timing, it's easy to bypass the small investment in this level of understanding and allow in-market performance to decide what works. However, with marketing results in a deepening state of decline and the knowledge that emotional connection has proven to more than double marketing performance, the answers to these questions represent the best opportunity to significantly reverse that trend.

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