Why Offering Less Choice Can Grow Your Sales
In 2000, a groundbreaking study involving Gourmet Jam turned the sales and marketing world upside down.
Yes, you read that correctly, I did say “Gourmet Jam.”
Long story short, two psychologists conducted a Jam study at an upscale supermarket.
The study consisted of two display tables.
One table contained 24 varieties of Jam while the other table had only 6 varieties.
Study Results
What was not surprising, the table with 24 varieties of jam attracted a far larger audience than its counterpart.
What was surprising, the study found that consumers were 10x more likely to purchase Jam from the display table with fewer choices.
The conclusion, too many choices, can lead to indecision.
Born out of this study was an excellent book written in 2004, by American psychologist Barry Schwartz called: The Paradox of Choice, why more is less.
Barry details research in social sciences to make the case that what was once the solution ( offering more choice ) has now become the problem (leading to decision fatigue, more stress, etc.).
Put simply, at what point does offering too many choices cause indecision?
Clearly, there is a tipping point.
Personal Anecdote
I remember the first time I visited Grainmaker ( Southeast Asian cuisine ) in Boston for Lunch.
As is commonplace now, they had an oversized menu written up on a chalkboard.
I got in line and felt an immediate sense of anxiety.
As I was scanning their vast array of choices, I became overwhelmed, and indecisive.
It was a classic case of analysis paralysis.
I dropped out of the line, and instead opted for a pre-made takeout lunch at Pret a Manger.
This should give all sales professionals pause for concern.
Are you offering too many choices with your service or product?
Consumers demand choice and rightly so.
But at what point does offering too many choices lead to decision fatigue and ultimately indecision?
Use This Guideline
The optimal number of choices will vary depending on your industry.
Known as one of the founders of cognitive psychology, George A Miller proposed that the magic number was 7 plus or minus 2.
Conduct A/B tests and measure what works best for your audience and industry.
Henry Ford might have taken this to the extreme when he famously said:
Any customer can have a car painted any color that he wants, so long as it is black.