The Impact of Algorithms on Buyer Decision Making

Dec 27, 2022

I constantly think about how algorithms impact buyer decision-making. On the one hand, algorithms can make it easier for potential customers to find and engage with our brand. But on the other hand, they can also limit the options buyers see, potentially steering them away from our products or services.

Let's start with the positive impact of algorithms. With the sheer amount of information and choices available online, algorithms help filter and organize this information to make it easier for buyers to find what they're looking for. For example, if a potential customer is searching for a specific product or service, an algorithm can help surface relevant options from multiple sources.

This is especially helpful for buyers who may need to learn what they want or need. By presenting them with options tailored to their interests and preferences, algorithms can help guide them toward a purchase decision.

But algorithms can also hurt buyer decision-making. By limiting the options that buyers see, algorithms can create a "filter bubble" that only presents a narrow range of choices. This can prevent buyers from considering alternative products or services that may better fit their needs.

For example, a potential customer is searching for a new laptop. An algorithm may only present them with options from a few select brands based on their previous search history and online behavior. This can prevent the buyer from discovering other laptop brands offering better value or features.

As marketers, we need to be aware of the potential impact of algorithms on buyer decision-making. We need to ensure that our products and services are being presented to potential customers in a way that allows them to make informed choices. This may involve working with platform providers to optimize our brand's visibility and positioning within algorithmically-generated search results.

In summary, algorithms can positively and negatively impact buyer decision-making. As marketers, it's up to us to make sure our products and services are being presented in a way that allows buyers to make informed choices.

We believe that diversity fuels innovation and drives success in the digital age.

© 2023 Sweet Potato Pie, INC.

We believe that diversity fuels innovation and drives success in the digital age.

© 2023 Sweet Potato Pie, INC.

We believe that diversity fuels innovation and drives success in the digital age.

© 2023 Sweet Potato Pie, INC.

We believe that diversity fuels innovation and drives success in the digital age.

© 2023 Sweet Potato Pie, INC.