What the Trust Recession Means for Advertisers

By Heather O’Shea, Alter Agents

A few weeks ago, I placed an online grocery order that never arrived. Instead, I received an email saying I’d get another update around 1:30 in the morning. There wasn’t a customer service representative to chat with, no phone number to call and no practical solution other than cancelling the order and placing it all over again. It just threw off my whole day.

The inconvenience itself wasn’t the biggest problem. A few days later, I realized I was still thinking about that grocery order. When I needed groceries again, I found myself checking the delivery window more carefully and wondering whether I should use the service at all. One frustrating experience had changed the amount of attention I gave to what had become a routine purchase.

That experience stayed with me because it echoed conversations we’d been having with clients and themes that kept surfacing in our consumer sentiment research. Consumers were describing a growing tendency to double-check information, spend more time comparing options and question purchases that once felt routine.

How higher expectations are changing purchase decisions

Much of the conversation around today’s consumer focuses on inflation and tighter budgets, and those pressures certainly matter. Our research found that many Americans are delaying discretionary purchases and paying closer attention to value. Alongside those financial decisions, another pattern keeps showing up. Consumers are spending more time evaluating purchases that once required very little thought.

Shoppers are taking a much more analytical eye toward even impulse purchases or everyday routine purchases. That behavior isn’t limited to expensive purchases anymore. People compare prices, search multiple websites, read reviews, watch product demonstrations and look for reassurance before deciding what groceries to order or which household products to buy.

Financial pressure is part of that story, but so is the amount of information people are trying to sort through. Those findings make sense when you consider another result from the study: 70% of Americans say they don’t know what information to believe, while fewer than one-third believe companies are open and honest about their business practices. Reviews are questioned, recommendations are second-guessed and consumers often continue looking long after they’ve seen the first advertisement.

Consumers are spending more time looking for answers

Across the studies we’ve conducted over the past several years, we’ve seen consumers spend more time deciding. Many no longer rely on a single source of information before making a purchase. Instead, they move between retailer websites, reviews, product demonstrations, creator content and recommendations from people they trust, gradually building enough confidence to make a decision. The amount of research going into everyday purchases has quietly expanded.

That has implications for advertisers, although perhaps not in the way many people assume. Consumers already describe feeling overwhelmed by information. Simply producing more content isn’t likely to solve that problem. Making it easier to answer the questions people already have is often more useful.

Across client work and our research, I keep coming back to the same ideas.

  • Assume people will keep researching. An advertisement may spark interest, but many consumers will immediately begin looking for more information before making a purchase.
  • Make information easy to find. Product demonstrations, specifications, pricing and return policies shouldn’t require multiple searches. Every unanswered question creates another reason to delay a decision.
  • Think about the experience surrounding the purchase. Consumers don’t separate advertising, ecommerce and customer service into different departments. They experience them as one brand.
  • Study where people hesitate. Consumer research helps explain what happens after someone becomes interested, where uncertainty appears and what information ultimately helps people feel comfortable buying. Using the right mix of methodologies (and there are so many available today) can also be predictive, revealing shifts in consumer behavior before they become obvious in sales or brand tracking.

Reliable experiences reduce the need to keep researching

One pattern that keeps emerging is how quickly consumers return to research mode after a disappointing experience. Our modern ecosystem has facilitated a world where consumers rely on convenience, ease, personalization and immediacy in all aspects of their lives. Whether it’s the information in their algorithms, the food they are ordering, the ads they are served, consumers now have a high expectation of the experience and are quick to seek alternatives when one of those aspects does not deliver.

Familiar brands still have an advantage because they require less effort. People know how the product works, understand the ordering process and don’t feel the need to compare alternatives every time they make a purchase. When that experience breaks down, however, many consumers are willing to spend the time researching other options, reading reviews and deciding whether another brand might do a better job.

The grocery delivery that arrived hours late, the website that made checkout unnecessarily difficult or the customer service interaction that never resolved the problem all encourage people to slow down and question their next decision. Consumers already have more information than they know what to do with, so adding another marketing message rarely solves the problem. Making products easier to understand, answering common questions and removing unnecessary effort from the buying process does. Those are practical ways advertisers can respond to a consumer who is already putting far more work into deciding what to buy than they were just a few years ago.

About the author: Heather O’Shea is a passionate insights leader with over 17 years of experience in market research and consumer insights. She has held positions at media agencies, publishers, tech platforms and research companies. She is currently the Chief Research Officer of Alter Agents, where she oversees the research functions within the company.  Prior to this, she was the head of global ad research & insights at Snap. www.alteragents.com