The Human Algorithm: Why "Efficiency" is Killing Your Marketing

In an era where AI and advanced software are eating the world, we are forgetting a fundamental truth: the "human component" is the only thing that actually matters.

While algorithms change weekly, the human operating system hasn’t had a firmware update in 50,000 years. Understanding this "human algorithm" is the only way for brands to cut through the noise and build actual relationships. Marketing isn't just about selling a product; it’s about recognizing behaviors, biases, and emotional responses.

But right now, most brands are getting it wrong. They are prioritizing spreadsheet efficiency over psychological effectiveness.

Here is why your obsession with "optimization" might be costing you millions-and how to fix it.

The Efficiency Trap: Are You a McDonald’s or a Human?

Finance and procurement departments love efficiency. They want to funnel every customer through the single, cheapest channel. This is a mistake.

Take McDonald's as a prime example. They pushed heavily for screen-only ordering in some branches to increase speed and efficiency

• The Upside: Screens reduce "social embarrassment" (no one judges you for ordering two burgers).

• The Downside: By eliminating other channels, they alienated a massive segment of customers who crave human connection or simply struggle with the tech.

Technology should be an option, not an obligation. The psychological reality is that consumers want ease, but they also want choice. Generally, the more channels you open, the more you sell.

When you force efficiency, the cost savings are quantifiable on a spreadsheet. But the lost sales due to a poor customer experience are invisible. That is a dangerous asymmetry.

The "Fat Tail" Problem: Why Accountants Hate Marketing

Great marketing ideas, like the original positioning for Dove or the Uber map, solve what we call the "fat tail" problem. These ideas generate millions in revenue in perpetuity.

The problem? Your marketing department is usually only credited for sales made in the first quarter.

This is insanity. It is like a pharmaceutical company only claiming credit for a drug's sales in the first three months , or a writer only earning royalties for six months. This short-sighted accounting undervalues long-term brand building. It forces marketers to focus on "bottom-of-funnel" scraps rather than building the next decade of growth.

The Psychology of Generosity

Here is a strategy most brands ignore because it looks like a loss on paper: Generosity.

When you are disproportionately generous, like offering a free pair of socks without a minimum spend, you fundamentally shift the psychological dynamic. You move the customer from a "transactional" relationship to a "reciprocal" one.

Take Kaggi, a subscription search engine. They refund your monthly fee if you don't use the service.

• The Finance View: This is losing money.

• The Psychology View: This lowers the barrier to entry, builds massive trust, and stops profiting from customer inertia.

The long-term loyalty gained from these "irrational" acts of kindness pays for itself ten times over.

The Bees Strategy: Stop Mining, Start Hunting

This dilemma is best explained by the biological trade-off between Explore vs. Exploit.

1. Exploit (The Accountant): This is the bee doing the waggle dance, directing the hive to a known source of pollen. In marketing, this is your PPC, your retargeting, your efficiency optimization.

2. Explore (The Marketer): These are the rogue bees flying off at random. They look inefficient, but they are the ones who discover the new rich pollen sources when the old ones run dry.

If you only have "exploitative bees," your hive gets trapped in a local maximum and eventually starves.

Marketing shouldn't be treated like iron mining (digging the same hole deeper). It is treasure hunting. It is a branch of R&D, and it needs to be funded like one. You need to find the next "Pumpkin Spice Latte" or "Share a Coke" campaign, not just optimize your click-through rate by 0.1%.

The "Two-Way Door": How to Experiment Without Fear

Why don't more brands explore? Fear.

Jeff Bezos solved this with the Two-Way Door Principle.

• One-Way Doors: Decisions that are irreversible (like building a massive warehouse).

• Two-Way Doors: Decisions you can reverse if they fail.

  
  

Most marketing is a two-way door. When Amazon launched Prime free delivery, it was a gamble. Bezos simply said to try it; if it failed, they could just stop.

Stop treating every marketing test like a life-or-death decision. Embrace the "two-way door." Direct marketing isn't just for making money; it is for learning.

The Verdict

To survive the modern landscape, you need to stop thinking like a machine and start thinking like a human.

• Prioritize Choice over Efficiency.

• Value Long-term Generosity over Short-term Savings.

• Fund Exploration (Treasure Hunting) alongside your Exploitation (Mining).

  
  

Understand the human algorithm, and the sales will follow