The foundation of a functioning economy is the freedom of choice that a variety of products provides. However, researchers have increasingly found that choice is only efficient up to a certain point. Consumers eventually become overwhelmed by their options and find it difficult to make informed decisions, which translates to fewer purchases.
Graham Button of Genesis, an international branding company based in Denver, Colorado, has important advice for small business owners: don't offer customers too many choices.
The evidence for this is clear. The Head and Shoulders line of shampoo used to come in 25 varieties. When Proctor and Gamble cut this number to 16, profits increased by 10 percent. Similarly, when General Motors reduced the models of automobiles it produced from eight to four, profits rose by 16 percent.
What is important to understand about these phenomena is that an organization should work to offer a clear message, a straight-forward service and a simple solution for customers. By identifying the target demographic and catering to those customers with an accessible brand, relevant promotional products and a smart marketing campaign, a business is more likely to achieve a loyal customer base and strong results than an organization that is working to offer something for everyone.