Do Your Shoppers Face a Purchasing Dilemma? How to Give the Right Customer Choice Every Time

I’ve just come back from a week’s course in Spain organised by the European Monroe Institute. The course was on consciousness, a thing all good marketers need to develop, especially when it comes to their customers’ choices.

The reason I am referring to this course, besides the fact that it was led by the brilliant consciousness expert Arkaitz, is because we spoke about a subject that is very relevant for shopper marketing. I did in fact already touch on something similar in last week’s post. I’m speaking about decision making and the difference between Polarity, Duality, Dilemmas and Trilemmas. For clarification, these terms refer to:

Polaritythe state of having or expressing two directly opposite tendencies, opinions, etc

Dualitythe state or quality of being two or in two parts; dichotomy, the division into two parts, kinds, etc

Dilemmaa situation requiring a choice between (equally undesirable) alternatives.

Trilemmaa situation, analogous to a dilemma, in which there are three (almost equally undesirable) alternatives.

Last week I spoke about the Trilemma as it relates to project work; in this post I want to review the different situations in which we oblige our shoppers to make customer choices and how we can make it a lot easier for them.

 

Customer Decision-making

Mark ZHow many decisions do you make in an average day? Tens, hundreds, thous ands, even more? It has been estimated that an adult makes in excess of 30,000 decisions each and every day. (>>Tweet this<<) From what to have for breakfast, to what to wear and the route we take to work, we are constantly making decisions. However, have you noticed that when you need to make a decision, having more choices is not always better? More choice can in fact make decision-making all the more difficult.

In a recent article about Mark Zuckerberg, it was mentioned that he, as did Steve Jobs, wears the same clothes every day. A sort of uniform that enables him to make one less decision that he considers to be less relevant and unimportant to the success of his business. In the post he reveals that he wears the same clothes over and over again, because he wants to limit the time he spends making “frivolous” decisions, so he can concentrate on real work. As he says:

“I really want to clear my life so that I have to make as few decisions as possible about anything except how to best serve this community. I feel like I’m not doing my job if I spend any of my energy on things that are silly or frivolous about my life, so that way I can dedicate all of my energy towards just building the best products and services.”

Retail Decision-making

It has been proven that shoppers can end up leaving a retail outlet or online e-shop without making a purchase, when faced with too much choice. (>>Tweet this<<) This so-called “choice overload” was first mentioned in the book  The Paradox of Choice, by Swarthmore College professor Barry Schwartz. Continue Reading

Sourcing & Services Matter: Why Price Alone Won’t get your Customers to Stay

Price wars are a st andard challenge of marketers, whether working on the retail or manufacturing side. They have become more frequent in the last couple of years following the recession. Consumers are today even more price sensitive and are searching for great value and even greater deals. However as most retailers are now claiming lower prices, it becomes less of a differentiator. I therefore read with interest that Walmart is moving from its emphasis on low prices to one on sourcing.

Walmart gives serviceIn 2007 Walmart replaced its “Always Low Prices, Always” slogan by “Save Money Live Better”, so this new push with the message “ Made in the US” is worth noting. This latest announcement is made in conjunction with its promise of an additional $10 million in grants to non-profits focused on “on-shoring” manufacturing efforts.

 

Target gives serviceTarget announced last October its plans to introduce the “ Target Sustainable Product St andard” which was developed to “establish a common language, definition, and process for qualifying what makes a product more sustainable.” Target will ask vendors to complete an assessment that is designed to determine a sustainability score for their products. Products will be assigned a score of between zero and 100 “based on the sustainability of ingredients, ingredient transparency, and overall environmental impact”.

 

Both these initiatives show a move to a more caring retail environment. A study run by the Boston Consulting Group at the end of last year, found that more than half of companies with sales greater than $1 billion are actively planning or considering to bring production back from China to the U.S. This rise from a mere 37% just six months earlier shows a significant shift in American sensitivity.

 

Jumping across the “pond” to the UK, something similar is happening in terms of shifting attention from price to value, or should I say values?

 

Tesco gives serviceTesco recently introduced their “ Price Promise”, a pledge to match the price of a basket of both own-label and br anded products at Sainsbury’s, Asda and Morrisons, or to offer customers a voucher at the till for the difference. Sainsbury’s has appealed to the Advertising St andards Authority, arguing that this claim was misleading customers. However, their wrath was, in part at least, sparked by the fact that this new Tesco pledge came in response to their own highly successful “ Br and Match” scheme, although the latter only compares br anded products.

 

Sainsbury's gives serviceSainsbury’s has now retaliated with the launch of a new campaign with the title “ Same price, Different values”, a possible dig at the fact that although Tesco won the ASA appeal, Sainsbury’s might appeal as they claim that their own-label products cannot be compared since many are locally produced. To support this position, the National Farmers’ Union has now taken a stance, backing Sainsbury’s. In light of last year’s  horse-meat sc andal, the values of retailers and the sourcing of food has become even more crucial, and Sainsbury’s sees this latest row as an opportunity to emphasise the difference between itself and Tesco. Continue Reading

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