What is “FOMO”? It’s simple: the Fear Of Missing Out. This term has traditionally been used in social settings, for example: “Jane had major FOMO when she was out of town for the summer party, because her whole team attended and it was always fun.”
However, the FOMO epidemic has now spread from social circles to the business world. Many organizations are experiencing FOMO when it comes to optimizing their promotional strategies – or, in other words, suffering from “Promo FOMO.”
Consider an organization that deploys a promotional campaign, first trialing it with a subset of customers to understand its impact. In this common scenario, there is a challenging balance to strike. Executives want to maximize the exposure of the campaign to the most relevant customers to avoid missed profit opportunities. However, the process of using test vs. control analysis to evaluate a campaign requires holding out a group of customers from the campaign in order to have a baseline comparison – meaning that fewer customers are receiving the campaign.