Bad mistake! Is too much choice responsible for destroying my revenue?
How long does it take to choose a craft beer at a big box liquor store? Four hours.
That’s what it felt like anyway. Why did it feel so long? Too many choices. In fact, when I was done, I needed a beer to recover from the exercise of choosing a beer.
Of course, if there had only been a few, I would probably complain that there hadn’t been enough options for craft beers.
The fact is, we like having choices, until we don’t. There is a point where not enough choices becomes way too many and the end result is the same, a negative experience and sometimes a lost sale.
In this episode, we explore the negative effects of too many choices on your bottom line. From overwhelming customers to elevating their expectations, what you offer has a significant effect on what people buy—or don’t.
Key Ideas to Improve your Customer Experience
There are two ways choice affects customers psychologically. First, too many choices can make people give up on deciding and wander off. Second, the plethora of options can increase the expectations for what a customer wants out of the transaction, and often keeps them on the hunt longer for the perfect choice. Neither is an outcome that is doing great things for an organizations bottom line.
Here are some other key moments in the discussion:
- 05:52 Ryan shares the results of research conducted at a Grocery Store in California that tested how many jam options was too many (Spoiler alert: It was more than six).
- 09:14 We discuss whether there is an optimal number and what considerations would go into determining that.
- 12:22 Colin explains how his TV shopping has increased his knowledge about TV offerings while also making him feel more anxious about choosing one.
- 21:33 Ryan uses dating opportunities to explain how more choices can change what you expect out of a date and Colin explains how he ends up in the matrimonial doghouse because of his lack of romanticism.
- 24:25. We share what firms can do to make decisions easier for people and maximize their decision potential in different offering scenarios.
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