Limit Your Customers Choices To Increase Sales by 600%

Limit your customer choices to increase sales and provide the best customer experience.

In Sheena Iyengar, 'How to Make Choosing Easier' TED Talk,

Over the past decade, we have observed three main negative consequences to offering people more and more choices. They’re more likely to delay choosing — procrastinate even when it goes against their best self-interest. They’re more likely to make worse choices — worse financial choices, medical choices. They’re more likely to choose things that make them less satisfied, even when they do objectively better. The main reason for this is because, we might enjoy gazing at those giant walls of mayonnaises, mustards, vinegars, jams, but we can’t actually do the math of comparing and contrasting and actually picking from that stunning display.
— Sheena Iyengar: 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

  1. By Product: Business provides a limited amount of product options for customers. They keep it simple for them and the customer.

  2. 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.

  3. Technology: Business leverages e-commerce through search results, filters by color, style, etc, big data, or machine learning to limit choices.

  4. 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.

Yours Truly