Doing More with Less: Fewer Product Options Can Be a Valuable Differentiator

March 16, 2011 3 Comments

In my last post Is There Really Such a Thing as Too Many Choices?, I looked at how too many product choices can leave customers frustrated and unhappy. Everyone says they want more product choices, but studies have shown that more choice equates to less sales, sometimes by a factor of 10.

Most brands ignore this simple fact and continue to pump out new variations to give consumers what they ask for – more product choices. Because of this, offering fewer product choices (resulting in an easier purchase decision) is a huge differentiator in this cluttered market.

Here are some examples of doing more with less product choices:

Trader Joe’s

Trader Joe'sMost grocery stores carry around 40,000 different items. Trader Joe’s takes a different approach and stocks about 4,000 items. With all of the different choices, choosing an item at a grocery store can be a stress-filled experience – brand names, price, size options, flavor differences, ingredients. At Trader Joe’s, instead of choosing between fifteen or twenty types of Italian salad dressing, you are given only a few options. This makes for a better shopping experience and shoppers are often much happier with their purchase decision.

Apple

Apple's iMacWhen discussing the topic of simplifying the customer experience, Apple has to enter the conversation. They integrate this approach in all of their touchpoints, including the purchase process. They offer limited varieties of their products to minimize the amount of buyer confusion. Looking to buy a new desktop computer? Apple offers four variations of the iMac. Compare that to other computer manufacturers whose vast number of options can drive customers away; Dell currently offers 119 different types of desktop computers.

In-N-Out Burger

In-N-Out Menu Variety vs McDonald’sThis West coast burger chain offers only four food items on their menu; three burger varieties (hamburger, cheeseburger, and “Double-Double”) and French fries. This minimalist menu is the polar opposite of McDonald’s endless menu choices. (Click here to see a comparison). Limiting product choices has enabled In-N-Out to beat the almighty McDonald’s in average sales per store.

Google

The world’s most popular search engine has always been about simplifying the complexity of search. Their homepage doesn’t distract users and offers them a clear choice. There is power in simple.

Google Homepage vs AOL

These are some examples of brands that make the purchase process easier by limiting choices. There is a difference between listening to what customers want (more options) and truly understanding what it is they want (fewer options). Choose wisely.

Filed under Branding, Customer Experience, Marketing, Strategy Tagged with , , , , , ,

Why Would Apple Get in Bed with Microsoft?

January 22, 2010 Leave a comment

Is it now a three player game?

The web has been all abuzz the past 24 hours about Apple. But people are’nt talking about the upcoming Macworld; rather, rumor has it that Apple is set to replace Google as the default search engine on its iPhone with Bing. You read that right Bing, as in Microsoft’s search engine.

Seen as allies throughout the last decade, Apple and Google now find themselves fighting for the same slice of the pie. Google’s emerging product offerings- such as Nexus One, Chrome OS- makes them Apple’s enemy number one, displacing Microsoft.

So with Apple and Google bound to duke it out, why in the world would Microsoft throw Apple a life raft? The answer is simple; Microsoft needs Apple. Just like Coca-Cola and Pepsi in the soda industry, this intense rivalry between Apple and Microsoft is what has made the two empires what they are today. Here’s how:

  • They compete on brand, not on price. This has created substantial barriers to entry and kept profit margins intact.
  • Created a drive to win the rivalry; this has improved both Apple and Microsoft’s overall performance by keeping them aggressive, creative, and flexible.
  • Branded competition has developed user loyalty. Are you a Mac or PC?
  • Creating a duopoly allowed both companies to grow; not at each other’s expense but at the expense of smaller players.

I have a feeling that Google isn’t going down without a fight. It is sure going to be interesting to see if or when Google’s Midas touch runs out. Do you think there is enough room in the industry for Microsoft, Apple, and Google?

Filed under Branding, Category Development, Competition, Strategy Tagged with , , , , , , ,

Simple + Sanuk…Pass it on!

January 14, 2010 Leave a comment

Simple vs. Complicated

Look around the marketplace; simplicity consistently outperforms complexity.

Even if their product is indeed complicated, successful brands are able to make it simple.

One brand who has caught my attention with simplicity is Sanuk. Started in 1997, founder Jeff Kelley started making sandals out of inner tubes and indoor-outdoor carpet. Though they have progressed in their footwear manufacturing, their products still feature “Barefoot Un-technology”. Their Sidewalk Surfers come with the description “Sorry if you were hoping to find some high-tech springs, coils, pumps, or air-bags. You just won’t find them here. After walking naturally in these, though, we’re confident that you won’t want to wear anything else.”

Not only is Sanuk simple, they’re also pretty funny too.

Filed under Word of Mouth Tagged with , , , , ,

Follow

Get every new post delivered to your Inbox.