Paul Hanus Paul.Hanus@thefuturescompany.com

September 27, 2011

Not another decision! Marketing to the 'decision fatigued' consumer

The Bottom Line

The more decisions a consumer makes in a day, the more taxing the process becomes. Focusing on the ways to ease this decision fatigue so that consumers can engage and make the right choice for their needs is a rising opportunity.

At the Root

A complex, information-saturated environment

The average American consumed 33.8 gigabytes of information in 2008, up from 9.8 in 1980 1

Consumers expect products tailored to their individual taste

69% agree, “Businesses care more about selling me products and services that already exist, rather than coming up with something that really fits my lifestyle.” 2

The return of risk and the need to regularly assess it

77% agree, “I am constantly aware of the need to identify and manage the risks that surround me in the world today” 3

Telling the Story

Paper or plastic? Facebook, Twitter or Google +? Cook, takeout, fast food or dine out? These are just a tiny sliver of the choices the average consumer makes in a day. All are manageable when viewed in isolation. But for consumers balancing their desire for “just right for me” solutions in an environment that offers virtually limitless access to information, the cumulative effect of all these choices can be challenging. In fact, recent research indicates that the very act of deciding can wear down mental willpower to the point that making a good choice becomes nearly impossible. The result of this decision fatigue is often one of two outcomes. Consumers opt for the least mentally taxing choice, resulting in an impulsive, hasty selection (and, often, buyers’ remorse). Or, perhaps more likely in a time when money is scarce and

.

“…Simply the act of choosing can cause mental

fatigue. Making choices can be difficult and taxing,

and there is a personal price to choosing." Kathleen D. Vohs, PhD, et al "Making Choices Impairs

Subsequent Self-Control"

decisions are more consequential, they avoid making a choice altogether, clinging to the safer status quo. Both of these outcomes are far from ideal for businesses looking to create demand and long-term loyalty. Considering ways to ease the pressure placed on your customers by decision fatigue is an increasingly necessary requirement for companies looking to thrive in this marketplace.

Taking Action

Know your customers inside and out

It’s never been more important to understand the journey your customers embark upon and the barriers they encounter each step along the way. Find out what decisions they see as unnecessarily complex or cumbersome and eliminate or automate them whenever possible.

Guide the decision

Emulate the Amazon model of providing recommendations and ‘signposts’ based on the characteristics of your target consumer and those similar to them (“Customers who bought this item also bought…”).

Focus on your core differentiating traits

In a decision fatigue world, consumers take shortcuts and often make one-dimensional decisions (such as on just quality or just price) to simplify the process. Highlight the areas you stand out compared to your competition.

What's the best way to reach decision fatigued consumers? Share your thoughts on our Facebook page!

Marketplace examples

1 Source: How Much Information? 2009 Report on American Consumers, Roger E. Bohn and James E. Short, Global Information Industry Center, University of California at San Diego 2 Source: 2011 Yankelovich MONITOR 3 Source: 2011 Yankelovich MONITOR, Wave 3"

© 2011 by The Futures Company