Are You Offering So Many Choices In Your Business? It Could Be Hurting Your Sales

It is challenging most people when they are presented with numerous choices in that they become undecided whenever many options are available leading to choice overload.

Choice overload is characterized by anxiety, confusion, and indecision when faced with numerous options from which to pick. The phenomenon can affect business because when presented with many options consumers tend to be undecided and end up not buying as compared to when you have few choices.

Does choice overload affect sales?

When presented with more options customers tend to buy less as was demonstrated by Sheena Lyengar in her Jam experiment. From the research, she discovered that the more the choices a customer has, the more difficult it is to decide and most might defer buying or give up altogether.

The effect was demonstrated by Proctor and Gamble who after cutting their choices from 26 to around 15 they managed to increase their sales by 105.

Equally, when customers have to decide between several choices, they tend not to give much thought towards the product. They would instead go for the option that does not present stress in determining what to buy.

Choice overload is thought to decrease customer satisfaction because once they have taken their choice, they will still believe that whatever they didn’t pick is the best option. Customers can even feel dissatisfied before choosing the product, and this can compromise the customer relationship.

What should you do about it?

To have a win-win situation then it is better to limit the choices because it is not necessary to fulfill all the options while hurting the business regarding sales. For instance, when a company like Costco reduces the product categories, it realized an increase in sales.

Equally, you should pay attention to the design of your product and not just reducing the categories to ease the decision-making process. Provision of the right information about the product is essential more so for highly differentiated products as it will enable customers to make their choice easily and thus to leave them with a lot of satisfaction.

Provide a limited variety of your products by having top products or the latest collection which will eliminate the need for choices.

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