By
Bob Phibbs
Updated May 24, 2024
Retailers often think that offering an abundance of choices will appeal to customers, but too many options can lead to decision paralysis and decreased sales. Understanding the balance between variety and simplicity is crucial to creating a shopping experience that guides customers to make confident purchases.
I was intrigued by an article in the Los Angeles Times, "Too Many Choices Can Tax the Brain Research Shows."
It said in part:
"Americans have come to expect a wide array of choices, and most companies, be they car companies, clothiers, or coffee shops, have been more than willing to pony up.
But more choices do not always equate to happier consumers or higher retail sales. In fact, some studies show that having to make too many decisions can leave people tired, mentally drained and more dissatisfied with their purchases."
This was detailed in Matt Haig’s book Brand Failures. He noted that:
"Procter & Gamble’s brand strategy in the 1980s seemed to be: why launch one product, when 50 will do? However, increased choice equaled increased confusion.
As a result, Crest lost market share... as soon as there were 50 Crest toothpastes, its market share dipped to 25 percent and fell behind Colgate. When they had one product they captured above 50 percent of the market.”
I would add that was because it was easy for the customer. The LAT story said as much in their helpful tips:
"Sometimes it's good to rely on habit -- 'put the blinders on and get the same toothpaste you always get,' says Barry Schwartz, a professor of psychology at Swarthmore College."
How this impacts your retail sales...
We retailers think giving our customers more choices is better.
But if the customer can't quickly understand why one product is better, they become overwhelmed and put on blinders. This is lethal for your business, killing any perceived value of your products and, therefore, the sale.
That's because it's easier to settle.
You will lose the sale if no one is there to help them narrow their choices, find out what they are trying to do, and match products to their needs.
The higher the ticket, the higher the stakes. That's why you need salespeople, not clerks.
The evidence is overwhelming that customers are over-choiced, from restaurant menus to the products on the sales floor. We don't want to make the wrong choice, and true salespeople can make the difference.
Yes, Paul Schottmiller and I discussed the Cisco Systems customer survey, which found that 68 percent of respondents said online reviews were among their top three influencers, whereas only 13 percent indicated store associates.
But, I believe that says more about the quality of the store associates in many stores than customers' proclivity to seek solutions from store employees.
What to do to drive conversions
Do you want to get your store sales up?
Do the hard part of hiring people who can sell. Hire people who can funnel down hundreds of choices of paint, carpet, furniture, black dresses, or whatever into items customers can easily decide on.
Salespeople are still out there looking for work; whittle down your resumes to those who have proven they can sell the merchandise.
Your competitors are "putting blinders on" and hiring whoever will fog the mirror, work the hours, and be grateful for a job.
See also: Lost a Sale? It All Started With How You Greeted Your Customer
Reduce your choices
While offering variety is important, overwhelming customers with too many choices can be detrimental. Retailers should focus on curating a balanced product assortment that simplifies decision-making and enhances the shopping experience.
Retailers can create an environment that encourages confident purchases and boosts sales by analyzing customer data, segmenting the audience, and effectively training staff. Experimenting with these strategies and continuously adjusting based on feedback will help find the perfect balance for each unique market.
Effective merchandising is essential for presenting a streamlined product assortment that guides customers effortlessly through their shopping journey. Utilize visual merchandising techniques to highlight key products and create focal points without overwhelming the customer. Strategic signage and displays can simplify choices, directing attention to bestsellers or new arrivals.
In Sum
To get your retail store moving, take the time to whittle down your choices of who you allow on your sales floor and train them how to sell. You'll be able to help customers choose, not settle—or worse, walk out the door empty-handed.
