Sunday, December 31, 2006

Sales Strategy 101 - Are You Confusing Your Customers

"Option Overload" is a serious problem that can negatively affect your businesses' bottom line. That's why you must understand and avoid it.

So just what is option overload? It is the availability of so many choices that a potential customer is unable to efficiently process all the information and make the purchasing decision in a timely manner. They become the proverbial "deer caught in the headlights."

Some business owners and sales people think that providing a lot of information and a lot of choices is always a good thing. Actually, the opposite is often true.

In an option overload situation, what is the easiest action for a potential customer to take? If someone walks into one of those large electronic retailers with the intention of buying a new LCD TV and finds that there are 25 different models with an assortment of different options, what is the likely result? In a word, confusion.

Once a potential customer becomes confused, what is their likely course of action? No action. The easiest and safest thing for a confused potential buyer to do is nothing.

They will become concerned that they are incapable of making a good buying decision because there are too many choices that they weren't prepared to evaluate. So they will need more time to do research and think about what options are really important to them. That means they will be walking out without buying a TV.

More than likely, we've all experienced option overload many times. I can remember looking at a 10-page menu in a restaurant and trying to decide what I wanted. There were just too many choices!

Evidently, they were trying to be all things to all people, but their extensive menu created a less than ideal dining experience for me. When I visit a restaurant, I don't want to have to have to think too hard about which of their 132 items I want to eat. You get the idea.

Now I'm not saying that you shouldn't provide choices for your customers. That's not what I'm saying at all.

What I am saying is that you need to examine whether or not you are offering so many options that you are confusing your customers. You need to determine if you are making them feel uncomfortable about making a timely purchasing decision.

To build a highly successful business, you must focus on always providing an easy shopping experience. You must focus on always making it easy for someone to decide to do business with you. Give it some thought..
"Option Overload" is a serious problem that can negatively affect your businesses' bottom line. That's why you must understand and avoid it.

So just what is option overload? It is the availability of so many choices that a potential customer is unable to efficiently process all the information and make the purchasing decision in a timely manner. They become the proverbial "deer caught in the headlights."

Some business owners and sales people think that providing a lot of information and a lot of choices is always a good thing. Actually, the opposite is often true.

In an option overload situation, what is the easiest action for a potential customer to take? If someone walks into one of those large electronic retailers with the intention of buying a new LCD TV and finds that there are 25 different models with an assortment of different options, what is the likely result? In a word, confusion.

Once a potential customer becomes confused, what is their likely course of action? No action. The easiest and safest thing for a confused potential buyer to do is nothing.

They will become concerned that they are incapable of making a good buying decision because there are too many choices that they weren't prepared to evaluate. So they will need more time to do research and think about what options are really important to them. That means they will be walking out without buying a TV.

More than likely, we've all experienced option overload many times. I can remember looking at a 10-page menu in a restaurant and trying to decide what I wanted. There were just too many choices!

Evidently, they were trying to be all things to all people, but their extensive menu created a less than ideal dining experience for me. When I visit a restaurant, I don't want to have to have to think too hard about which of their 132 items I want to eat. You get the idea.

Now I'm not saying that you shouldn't provide choices for your customers. That's not what I'm saying at all.

What I am saying is that you need to examine whether or not you are offering so many options that you are confusing your customers. You need to determine if you are making them feel uncomfortable about making a timely purchasing decision.

To build a highly successful business, you must focus on always providing an easy shopping experience. You must focus on always making it easy for someone to decide to do business with you. Give it some thought..