Pricing And The Paradox Of Choice

While discussing pricing strategies and product line offerings with a client, I was reminded of a great TEDTalk by Barry Schwartz entitled The Paradox of Choice.

In the talk, he encourages us to break through the assumption that more choice equals more freedom and realize that we are often crippled by choice. In regards to marketing, people often refrain from purchasing something altogether if there are too many choices. Below is the TEDTalk. I consider it to be one of the most informative AND one of the most entertaining.

If you don’t have twenty minutes to spare, here’s a quick breakdown of Barry’s talk.

We all know what is good about choice. Here’s what’s bad:

Paradoxically, choices cause paralysis rather than liberation.

Example: Investment records from Vanguard have shown that for every ten voluntary retirement funds that were offered by an employer, ten percent fewer employees participated. With 50 funds to choose from, the fact that it was so hard to decide resulted in procrastination and a tomorrow that never came. Significant matching money (as much as $500/year was passed up).

Further, even if we overcome the paralysis of a decision that has many alternatives, regret is induced. This regret subtracts from the satisfaction of the choice that was made – even if the decision made was good and rewarding. We end up imagining the outcomes of the choices not chosen and become less content with the route that was chosen.

Example: A couple sitting on the beach in the Hamptons sits there dreaming about all the good parking spots they’re missing on West Eighty-Fifth Street in NYC. Everyone’s on holidays because it’s August and they could have prime spots in front of their building at home.

In summary, increased choices result in:
1. Paralysis
2. Regret

So, how should you apply this to your marketing strategy?
1. Don’t overwhelm your customers with too many product line and price options.
2. Don’t promise the world with your marketing and risk under-delivering. Create a situation where your customer is more than pleasantly surprised.

7 Ways to be an Awesome Person to Work With

1. Be excited to work with other people.cute-smiling-cat

If you’re always more excited to work/meet with the other person, they’re sure to have a great time meeting/working with you. When you go to a restaurant and a server is happy, it’s contagious, the same goes for when you meet with someone. If you’re happy and have a positive outlook on things, it’s difficult for others not to have the same view. As the song goes… don’t worry, be happy.

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Video: The Only Two Reasons You Go On The Internet

There are only two reason why people go online; to either solve a problem or to entertain themselves, nothing else.

Think about it, you never just “waste time”, you’re solving a news, banking, work, vehicle, or home related problem or you’re entertaining yourself.  Gossip sites, games, the news, all forms of entertainment.  Twitter can be both, entertaining and solving a problem.  Reddit, YouTube, Facebook, are mostly entertaining but can solve problem for us.  E-mail newsletters for the most part don’t solve a problem, neither do they entertain, hence why average open rate for e-mail newsletters is dismally low.

 

Making people smile since 2013

Marketing Tip Of The Day: Easy Google Chrome Depersonalized Search

Did you know that when you search your own product or company with the hopes of seeing where you appear in Google’s search results, you’re not getting objective information? Google hangs on to your past searches, takes your location into account, and gives results accordingly. You end up seeing an inaccurate representation of where your site appears in the search results.

A few months back, Jeph  blogged a nice little trick to depersonalize your search and see where you actually stack up for important search terms.

If you’re using Google Chrome, that trick isn’t required. You can get a true representation simply by opening a new incognito window as depicted below:

If you haven’t climbed aboard the Google Chrome train yet, check out Jeff’s page for his trick.

Happy search engine optimization!

The One Secret Thing That Every Brilliant Company Does

Break their expectations.

Their: Define your customer.  This is very important, who’s the target audience?  It’s not everyone, it’s not a large group of people, the smaller and more detailed the categorization of your target audience, the easier it will be to define their expectation.

Expectations:  What do your customers expect of your product or service?  What do they think they’re getting when they hire you?  What do they actually get when they buy your product?  What does working with you entail?  The more you can define ‘what’ they’re getting, the easier it is to set an expectation.

Break: You must exceed what ever is expected of you.  You’ve defined who ‘they’ are.  You’ve defined what they ‘expect’.  Now you must determine ways to exceed it what they expect.

If done correctly you’ll have a wildly popular company.

AKA: Over delivering, providing more

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