Donna Leyens

Less Gets You More Sales

As business owners, our natural tendency is to want to offer our customers choices. It seems logical – the larger the selection, the more choices our prospects have, the more they’ll buy, right? Wrong!

It may seem counter-intuitive, but the fewer choices you give someone, the more likely they are to buy. Choices actually create confusion, overwhelm, and paralysis. And this rule applies to every stage of the sales process, including emails, marketing materials, and even your web pages.

For example, an email that has multiple calls to action or multiple links will get fewer total click-thrus than an email with just one link. A web page with one call to action will get a higher conversion rate than one that has multiple options. This is why “squeeze pages” – a landing page with no navigation bar, with a sole purpose to convince the visitor to sign up for your email list – are so effective.

If you have a retail business, you might be very tempted to carry a large variety of inventory in order to please all possible tastes, give the customer more options, and incresase your sales. But if you look at what is and isn’t selling, you will probably notice that you have a lot of “dead wood.” A good portion of your inventory is just sitting there, week in and week out. Figure out which items are most popular, and get rid of all the rest. Your sales of the most popular items will go up, and your inventory carrying costs will go down.

The same is true if you provide a service. Give your customers up to three basic options or packages for optimal sales conversion. Just like the retail business that has best selling items and clunkers, if you analyze your service offerings, you will find some that are more popular than others. Focus on offering only the two or three services that your best clients want, and not only will you increase your conversion rate, but you will get better and better at delivering those services, and you will do it more efficiently. Your sales AND your profit margins will increase.

 

Article written by :
Donna Leyens
Donna Leyens is an entrepreneur, a Certified Professional Business Coach, and has an MBA in Finance and Entrepreneurial Studies. She is the co-founder and President of Provendus Group, a team of business strategists who use cutting edge business techniques to help entrepreneurial companies that have stopped growing, to break through the plateau and start expanding again. www.ProvendusGroup.com.
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2 Responses to Less Gets You More Sales

  1. Rodrigo Laddaga says:

    Great tip Donna! this is a very important topic and as you mentioned, there is a lot of confusion with small business about this. Especially when we talk about retail where the common criteria is to have a lot of products so the customer can find anything they are looking for. The typical question of the cashier in the big supermarket chains of: did you find every ting you were looking for? tend to confuse small business owners about having a lot variety. More and more evidence is being found about the suggestion you made about not offer to many options since it confuse customers. I think that today, more than ever customers are overwhelm with too much options. And there is a stress related with too much options that affects customer purchase decision.

  2. Bola says:

    Costco is a master of limited or shall I say select choices and they are doing really well with it.

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