Limit your customer choices to increase sales and provide the best customer experience.
In Sheena Iyengar, 'How to Make Choosing Easier' TED Talk,
Read about her results of 600% sales increase when limiting the jars of jam from 24 to 6. Studies show that the magic number is somewhere between 1 and 6.
So how do you best limit the options to equal the magic number. Each comes with a different price tag for the business and customer. In fact, we develop new methods and use tools to help us limit the choices so we can make a decision.
4 Methods to Limit Choices
By Product: Business provides a limited amount of product options for customers. They keep it simple for them and the customer.
By Business Design: Business strategy is built around curating the right products for the chosen market. This is often a local boutique approach - whether it is food or clothing, it is applicable.
Technology: Business leverages e-commerce through search results, filters by color, style, etc, big data, or machine learning to limit choices.
Personal Service: Business provides a personal shopping like experience to help in customer choices based on close relationship. Personal shopper or individual stylist.
Working for a technology company with a focus on product and service, I am passionate about the perfect mix based on the customer profile and strategy for a business.
If you are okay with limiting your market or products, the answer could be simple. Once you want to grow the business, a decision must be made on how to help limit the products or services to guide the customer to a purchase. After all, if the business has too many choices, how will it ever achieve market leadership in any them?
While technology options available to enable customer experience span several industries, I am particularly interested in fashion and SaaS businesses.
To stay on a positive note: Which brands are doing it well? How could they leverage technology to improve the customer experience - while they maintain the right balance for their target audience?
Stay tuned for future posts on these options.