SIGMA::BLOG

Choices.  People just love choices.  Choices present options, opportunities for customization, and lots of reasons to try or buy.  Right?

I was in meeting recently, reviewing competitive intelligence for a very cluttered category.  Among the findings was the abundance of features the different competitors offered consumers.  And having pored through so many competitors with so many choices, I found myself in the shoes of their shopper, completely overwhelmed and uncertain which I would personally choose.

Immediately, I thought: “jam!”  Not as in “brain jammed by too many options,” but rather, strawberry, grape, and other flavors.  Specifically, a study I recalled that was conducted by a Columbia University professor, a California gourmet market, and a premium jam maker.

In the study, a sampling booth set up in a gourmet market enabled consumers to try different types of one brand of jam.  Every few hours the assortment was changed between a larger set of flavors and a smaller set: twenty-four different flavors, to just six.

On average, consumers tasted at least two kinds of jam, and everyone received a dollar off coupon to purchase.  But what ultimately drove sales stemmed from the number of choices the consumers were presented.  Sixty percent of the shoppers were drawn to the large assortment, while only 40 percent stopped by the small one. But when it came to actually making a purchase, all those choices actually paralyzed the consumers.  Thirty percent of the people who had sampled from the small assortment decided to buy jam, while only 3 percent of those consumers who had to choose from the two dozen different jams purchased a jar.

Similar studies have been done around chocolate, 401k plans, and speed dating, all with similar results.  A large assortment of choices may attract attention, but when it comes to actually making a choice and buying, it’s distracting.  Additional research also concluded that ultimately, when a consumer does make a choice from among many, he or she is more likely to feel less satisfied, less happy with the choice and even insecure, asking “did I make the right selection?”  In other words, walking away with a negative experience.

So often we see brands, clients and even agency people thinking that more is more.  Give them choices, give them options, and let them choose!  But in the end, providing a focused, more streamlined offering leads to “happiness” and ultimately, a sale – whether it’s features and functions, or product benefits, or even creative choices.

(Source:  New York Times, “Too Many Choices: A Problem That Can Paralyze,” Alina Tungend, February 26, 2010)

It happens at this time every year, and it’s inevitable. I call it “Christmas Creep.”  It’s when sparkly garland, lights, toys, and other festive holiday offerings start creeping into the aisles of my regular retail stops.  And just in the nick of time (St. Nick…of time?), the National Retail Federation has released a holiday survey, taking a pulse on consumers’ holiday spending plans for this year.

This is important because it gives us an uber-snapshot of today’s consumer profile. When faced with a must-spend occasion, we know what they’re thinking and doing.

Today’s consumer is:

1.  Showing optimism

-  Expected to spend $688.87 on the holidays this year, up a tiny bit from last year ($681.83), but nowhere near years past (e.g., 2007 = $755.13).

-  Translating that feel-good into looking good with jewelry!  Asking for jewelry has made a 10% jump up from last year—demonstrating a higher comfort level in discretionary spending. (more…)

Let’s face it, we’re a society who wants to have our cake and eat it, too.  We’re consumers who say one thing…but embrace new products and services that indicate something else.  Often, for a brand person, it’s seemingly impossible to serve up engagements that satisfy these mixed signals among consumers.  How do you address the needs of a consumer when they say one thing, and you have the brand or product that offers great benefits, but then they just don’t buy it, or they just don’t act, or they head in another direction?  Honestly…when all is said and done, it’s simple:  don’t just satisfy consumers, make them feel good.

A great example of the contradictions in behavior is with food.  Look at the landscape in recent, food headlines and news bytes (no pun intended).  And then take a peek at what’s tantalizing our pallets as trends and recent intros.  The juxtaposition not only demonstrates consumers’ contradictions in choices, but at its core, it reveals consumers’ desire to be surprised, delighted, and to just walk away feeling happy. Check out this “salty and sweet mash-up” of sorts…

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If you own a car, there are countless ways you can find yourself at a body shop: you back into a fire hydrant, you develop a strange attraction to shopping carts, someone keys your door. You get the idea. Most cars have also become quite good at letting us know when someone needs to look under the hood – idiot lights on the dash, funny sounds, a new smoking habit, or one day it just decides to not move.

Why is it then, that we fail to act when we think—sometimes even know— that our brand is in disrepair? Well, whether it’s an abandoned Buick on the side of the road, or a brand new Prius with a sticky accelerator, there are identifiable indicators that it’s time to make a visit to “the brand shop”. The following are a few things that may light up your brand’s dashboard:

1.  Your market environment has changed. Your customers’ expectations of how a brand in your space looks, means, and behaves has altered. Are you keeping up with it? What your brand offers is still relevant to your customers, but how they think of you (and talk about you) needs to change to allow you to be more competitive.

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