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Too Much Choice Can Hurt Business Performance

Did you know that giving customers too many choices can overwhelm and lead to fewer sales?

It’s true.


Successful business owners should develop a niche expertise rather than a “one-stop shop” brand. It will give them the reputation for doing one thing extremely well. In this social media connected world, this also activates more sharing with their friends that will drive additional business.

It poses these problems for a company:

  • Focus. It does not allow the small business owner to focus on what the company does best. Trying to be all things to all customers just dilutes the company’s effort at excellence, especially in the early growth stages. In order to be the best, companies typically have to do less, not more.
  • Brand. It does not allow the small business to brand itself in the mind of the customer. Early on, it is best to get known by the consumer for doing one thing really well. This allows the company to become distinct from other competitors.
  • Delays. It is actually more difficult for a consumer to choose a product they want to buy if there are more choices rather than less. They easily get overwhelmed and it leads to buying delays.
  • Capital. The more products a company has, the more capital that is usually needed to maintain stock. This also consumes precious cash flow that the company may need in other areas.
  • Competition. In this world without geographic supplier boundaries, the wider the product offering, the more competitors a company will have that are only a click away.

In nutshell, when it comes to complex consumer behavior, simplicity sells.



Source: https://www.forbes.com/sites/aileron/2013/02/20/why-too-many-choices-will-hurt-your-small-business/#4f9849252378

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