Choice Is Killing Your Business

Too much choice

Are you running a business or a smorgasbord?

I get. You love your customers. You want to make them happy, meet their every need and grant their every wish. So you give them loads of options. Options, options, options. They can mix and match, pick and choose, and spend hours browsing your extensive selection of whosiwhattsits and thingamagigs.

With all of that freedom of choice your dishing up, surely your target consumer will pick you over the other guys. You’ve got it all. Why would anyone even consider your competitors, right?

Wrong!

It’s a proven fact that the more choices we have as a consumer, the less likely we are to buy. We get overwhelmed when presented with too many options. So overwhelmed in fact, that very often our response is to do the same thing as before or do nothing.

Think about it—you may start out wanting to do something new on date night, but when faced with choosing from dozens of alternatives, nine times out of ten you’re going to end up at the movies, or just stay home. Why? Because it’s easier to do nothing than making up your mind.

Too many options stresses people out. You’ll make people crazy with a choose-your-own-adventure style website and brochures that read like the menu at an all-night diner. And you’ll make yourself crazy trying to be great at delivering value for all of those choices.

I know you want to satisfy your customer’s every whim, and that’s sweet. Really it is. But that’s not what they want. When potential customers seek you out, they want you to relieve them from having to make another decision. They want you to make their lives easier, not more complicated. They don’t want to have to figure out which one of your many products or services is best for them, they want you to TELL THEM what’s best for them.

Look, if you overload people with too much of anything, they will feel stressed and ignore you. If you keep it simple and with fewer choices, they will feel relaxed and confident—they’ll pay attention, maybe even buy. So save the smorgasbord for holiday dinner and start streamlining your offerings. Your customers will love you for it.

By Mike Michalowicz, Author of The Toilet Paper Entrepreneur

Category: Big Success Stories, Marketing Like Mad, Your Belief System
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  • http://www.unchained-entrepreneur.com Seth Elliott

    Two thoughts on this.

    1. Often times I’ve worked with clients and the phrase “the customer doesn’t even know what he wants” appears. I think this perspective is actually a function of the issue that you’ve raised here – too much choice can have a negative impact. As an entrepreneur, often your job is to identify what a client needs and provide a direct solution – not offer a “chinese menu.”

    2. A related perspective has to do with institutional financing. For financing purposes it’s important to strike a balance between too little and too much in your business strategy. Of course, investors don’t want to see a “one trick pony,” (too much risk), but of equal concern is a business that is trying to do too much.

    • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

      I never thought about that vendor perspective of the customer that way (as you point out in #1). Thanks for that.

  • http://www.movingfrommetowe.com/ kare anderson

    And, from the book, The Paradox of Choice (and others’ research) we learn that three choices are optimal.

    Offer a “no brainer” low cost option, an attractive mid-price alternative and an over-the-top extravagent choice and more people are likely to:

    • buy something rather than nothing

    • pick the mid-priced option – framed as it is against that fantastical top option

    • and to be “satisficed” – that is to feel happy with their choice

    Of course many savvy biz owners forge SmartPartnerships with other firms that serve the same kind of client to include a “bonus” gift when people buy the mid and top-priced option – one that can be picked up at their partner’s place of business.

    That way both partners can :
    1. Offer the ‘extra” that may tip people into buying without it costing them more to provide

    2. Gain a warmed-up introduction to each other’s customers

    • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

      Kare – this is great stuff. Thanks for sharing!!!

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  • http://ppgear-table-tennis.ca Arthur Lui

    I absolutely agree. I sell custom ping pong rackets where people can choose what rubber sheet (out of about 15-20 choices) and which wood blade to out it on (another 10 choices), and each has varying performance characteristics. Since my customer base has a lot of new players that aren’t knowledgeable in equipment, they would get overwhelmed with the choices. To simplify it for them I made a page for “Recommended Racket Combos” so they can choose out of 4-5 choices and not get overwhelmed by customizing combinations of 10 blades x 20 rubbers (200 choices).