728x90 AD TOP

Feb 9, 2012

tags: ,

Optimizing Customers' Decision‐Making Process

The larger your portfolio of products and services, the harder it is for you to sell given its negative impact on the decision-making capacity of your customers.
Decision-Making optimization
  Freedom is associated with the capabilities to choose. Therefore, a larger number of options improves welfare. Nevertheless, the truth is that people do not like to choose and prefer not to and when there are too many alternatives, choosing becomes dramatic.

  Ask yourself how many times have you gone to a restaurant recommended by a friend, who has a type of food you love, and yet when you see the menu and try to choose something, there are so many options, you cannot choose. The problem is not the talent of the chef, is the fact of not wanting to pick a bad choice, if there is one among so many dishes that you might like even more than the one you are willing choose.

Decision-Making optimization  Remember that time you went to the supermarket to buy a product, and you are faced with are filled with thousands of similar products, but with apparent "major differences." You take the time to read his features, to try to understand their differences, and after a while you end up choosing the product that you think best fits your needs. However, you feel uncomfortable with your decision.

  The fact is that the greater number of options helps to increase our expectations, creating a tendency to have lower satisfaction even when the buying experience was good, we had an exquisite meal or the product did everything we needed from him. Given the wide variety of alternatives, we are led to believe we could have chosen better.

  It is true that by offering more services and products you can attract the attention and curiosity of many people. how many of them turn into customers? How much does it cost for you to offer so many options? Despite what you may think, it is proven that when there are fewer options to choose from, the client is more likely to buy.

  There are three phenomena generated by the overload of choice: lower customer engagement, therefore, fewer willingness to purchase. A poor-quality decision, customers buy products and services that do not suit them nor meet their needs. Less satisfaction, the greater number of alternatives generates higher expectations and regrets about the final decision.

Related articles: Finding The Right Customers For Your Business

Decision-Making optimization
  However, how we can optimize the decision process of our clients, to engage them and meet their needs, and generate further growth of our business?

  First, we must understand that in business "less is more." We must reduce our offer using principles such as Pareto, also known as the 80-20 rule, if you look at our products and services, we will find that few of them generate most of the profitability of the company. Moreover, there are other services and products only represent inventory costs, logistics, personnel and time, which must be eliminated. Companies like, Google which some months ago started cleaning the house or Aldi which only offers 1400 is one of the top 10 global retailers.

Related articles: The 9 To-Do's of Successful Entrepreneurs

  Second, we can help the decision-making of our customers, by categorizing our products and services. This category should focus on helping the person taking the decision to differentiate between the options not the company. It is better to offer more categories than products. By increasing the number of categories, and not the options, we help our customers in their decision making, and they are more likely to buy.

  Third, make the decision of the customer feel more real and concrete. A picture is worth a thousand words. If you've ever read a description of some exotic place, no matter how detailed, this is, it does not compare to the feeling of reality in a photograph. We must be able to concretize the results of the decision of the customer.

  Finally, you can create a greater customer engagement by optimizing the decision-making process.Take them from simple decisions, to more complex ones. This allows the customer to have a better experience in their decision making because they do not feel lost among so many alternatives, but with every step, they are more committed to take a decision.