5 Stages of the Consumer Decision-Making Process and How it's Changed

Summary

Garrett Mayer outlines the five classic stages of the consumer decision-making process—need/problem, informational search, evaluation of alternatives, purchase decision, and post-purchase evaluation—and reframes them for today’s digital, search-driven B2B world. He stresses that discoverability via SEO, paid search, marketplaces and review sites is critical during early stages, while content must match each stage’s intent. Traditional competitor ad grabs rarely pay off; instead, invest in informational visibility and superior sales assets to boost close rates. Finally, prioritize post-purchase feedback (NPS/check-ins) and product-driven marketing—be a “purple cow” so customers naturally advocate for you.

Takeaways

• 😀 The five stages of the consumer decision-making process (Problem Recognition, Informational Search, Evaluation of Alternatives, Purchasing Decision, Post-Purchase Evaluation) remain the same, but the methods people use to navigate them have changed significantly.
• 😀 The first stage, 'Problem Recognition,' involves identifying a need or a problem, and SEO and paid search can help brands get discovered during this phase.
• 😀 In the 'Informational Search' stage, people now turn to search engines rather than traditional methods like friends or newspapers to gather information about potential solutions.
• 😀 The 'Evaluation of Alternatives' stage has shifted from marketers controlling perceptions to customers relying on independent reviews and directories (e.g., Gartner, Forrester, Clutch) to evaluate options.
• 😀 To influence decision-making in the 'Evaluation of Alternatives' stage, companies must ensure they show up on review sites, marketplaces, and paid search ads, rather than just their own website.
• 😀 AdWords competitor campaigns, aimed at capturing leads from competing brands, have not been profitable in recent years. A better approach is focusing on informational search through directories and review platforms.
• 😀 In the 'Purchasing Decision' stage, companies often neglect to provide the necessary assets to close deals. Properly designed sales decks, case studies, and other resources can significantly lower the cost per opportunity.
• 😀 Investing in the closing phase is as important as generating leads. Improving the closing rate is key to driving revenue from the leads generated.
• 😀 Stage 5, 'Post-Purchase Evaluation,' focuses on gathering feedback from customers to improve services or products. Companies should use tools like NPS software and regular check-ins to learn from customer experiences.
• 😀 The concept of the 'purple cow' emphasizes creating a product or service that is so unique and valuable that it markets itself. A well-crafted product or service leads to organic growth through word-of-mouth.
• 😀 A solid understanding of the new consumer decision-making process, especially in the context of search engines and review sites, can help businesses optimize their marketing strategies and achieve higher returns on investment.

Q & A

What are the five stages of the consumer decision-making process mentioned in the video?

The five stages are: (1) Problem or Need Recognition, (2) Information Search, (3) Evaluation of Alternatives, (4) Purchase Decision, and (5) Post-Purchase Evaluation.

Who originally established the five stages of the consumer buying process?

The five stages were established by philosopher and psychologist John Dewey in 1910.

How has the consumer decision-making process evolved with modern technology?

While the stages remain the same, the way consumers move through them has shifted from traditional methods like newspapers and personal referrals to digital platforms such as search engines, review sites, and online content.

What role does SEO and paid search play in the need recognition stage?

SEO and paid search help make a brand discoverable when potential customers are identifying their problems or needs by searching for solutions online.

What is 'Answer the Public' and how can it assist marketers?

‘Answer the Public’ is a keyword and content research tool that shows what questions people are asking around a topic. Marketers can use it to understand customer needs and create relevant content for the early stages of the buying process.

Why is the information search stage especially critical for B2B and SaaS companies?

Because most B2B opportunities and revenue come from this stage, as potential customers actively seek vendors, solutions, and comparisons for their specific business problems.

How can B2B brands ensure they remain visible during the evaluation of alternatives stage?

They should maintain a strong presence on third-party review sites, directories, and comparison platforms like G2 Crowd, Clutch, or Gartner to appear credible and trustworthy.

Why do competitor AdWords campaigns often fail to perform profitably?

Because targeting competitors’ brand names usually reaches people who have already made a purchase decision, making it difficult to convert them efficiently or cost-effectively.

What does the speaker suggest about improving the purchase decision stage?

Marketers should focus on enhancing sales assets such as presentations and case studies, ensuring they are modern, visually appealing, and competitive, as improving close rates can reduce overall customer acquisition costs.

How can businesses benefit from the post-purchase evaluation stage?

By gathering feedback through tools like NPS surveys or regular client check-ins, businesses can identify areas for improvement and transform customer dissatisfaction into growth opportunities.

What is meant by Seth Godin’s 'Purple Cow' concept in this context?

It refers to creating a product or service so remarkable that it markets itself through customer advocacy, as seen with brands like Tesla that rely on product excellence rather than heavy advertising.

What is the key takeaway from Garrett Mayer’s discussion on the consumer decision process?

Understanding and adapting the five stages to today’s search-driven, information-rich environment empowers marketers to create campaigns that attract, convert, and retain customers more effectively.