the paradox of choice and guided selling solutions

© 2015 Smart Information Systems Inc.

The Paradoxof ChoiceWhy you need to make choosing easier for your shopper and how Guided Selling can help you with that.

http://www.smartassistant.com/



The Consumer Demand for Decision Support Has Never Been Higher

It has long been the common perception that there is no such thing as too much choice.

But, as the modern consumer has less “disposable time” to evaluate options and make confident purchase decisions, too much choice can quickly impact customer experience, customer satisfaction, and ultimately, conversion , in a negative way.

It’s just not enough to offer lots of choices: Consumers expect their favorite shopping destinations to help them understand product benefits and differences better, enabling them to make confident and informed purchase decisions.

More than ever before, businesses have to look for strategies and solutions to achieve that.

In this guide, you'll learn:

› What is the Paradox of Choice and why should retailers and brands care?

› A breakdown of the 4 basic shopper types and how to improve their choosing experience

› How Guided Selling supports businesses to make decisions easier for their shoppers

› Examples and Best practices for Guided Selling solutions

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Did you know that Amazon sells

3,047 kinds of

toilet brushes?

Could I Have More Options, Please?

It's the thrill, the anticipation, and the expectation of falling upon that ideal product or that perfect deal in a large assortment, which is alluring to many shoppers.

A massive amount of choice means that consumers have greater decision flexibility and could get exactly what they want – however specific or unusual their requirements may be.

At the same time, psychological studies have consistently shown that too much choice leads to indecision, regret, and ultimately lowered satisfaction with both the purchase process and the products.

… the Paradox of Choice!

But why is that?

CONSUMERS LOVE THE IDEA OF CHOICE❤

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Too Much Choice Is A “Thing”

Being swamped by too many options is counterproductive to any consumer’s shopping process.

With too much choice, shoppers tend to worry more about making the wrong choice, missing something important, overthinking and second-guessing every decision.

The result?

Consumers may abscond from making a decision all together, postpone an intended purchase indefinitely or end up going with a less suitable option, simply because it's the easier way to go.

AN INEFFICIENT SITUATION FOR BOTH SHOPPERS AND RETAILERS.

✗In a classic experiment, Sheena Iyengar, now a professor at Columbia Business School, set out pots of jam on supermarket tables in groups of either six or 24.

About 30% of those who were given six choices bought some jam; only 3% of those confronted with 24 choices did.

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SHOPPERS DO NOT ONLY WANT CHOICE, BUT BETTER CHOICE!When consumers say they want more choice, more often than not, they actually want a better choosing experience. They want to feel confident of their preferences and competent during the choosing process; they want to trust and enjoy their choices, not question them. (Iyengar)

Businesses need to be sensitive to these expectations and help their shoppers make better and more informed choices.

“


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So how can this be accomplished?Whenever businesses provide their shoppers with the right support and the right tools that turn choosing into more positive and less mind-numbing experience, it helps them gain a competitive edge in the market, increase sales, and become the #1 Point of Decision.


Good product knowledge / With articulated preference

Feature andProduct-focusedchoosing

#1 OFFER THE RIGHT CHOOSING EXPERIENCE

I know exactly what I want!

THE EXPERT

Expert shoppers actually do not have much choosing to do anymore.

They have educated themselves and already know exactly what they want and will go directly to the product search bar. When strategically placed, your customers will easily find what they are looking for.

I know which features I want!

THE LISTER

Listers are shoppers who have specific criteria in mind, but don’t generally know what they want.

Offer them the option to filter and sort products by product features they know and are able to associate benefits with.

I know you’ll inspire me!

THE BROWSER

Browsers choose to spend time on your site to get inspired for their next purchase.

Create lean-back experiences tied to each visitors behavior, purchase history, real-time activity and more such signals to let them discover products they’ll like and ensure that these are easily discovered.

I need your advice!

THE NOVICE

Novice shoppers are those unfamiliar with the product category and without articulated preferences. They are most likely to experience choice overload and are easily overwhelmed by large assortments.

Provide expert help or advice, offer a recommended option and explain why you've recommended it.

Firstly, there are at least 4 basic shopper types to consider. Depending on the product domain, their intentions, preferences and product knowledge, they show different product discovery and decision patterns. Online stores have to make sure to create the right choosing experience for each shopper type.

Usage andBenefit-focusedchoosing

Limited product knowledge /Without articulated preference

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Create more efficient decision paths and minimize the number of (external) information sources consumers must

touch while they move toward a purchase. Be their source of information and become their #1 Point of Decision.

EASY NAVIGATION o

Include commentary from other consumers in the form of ratings and reviews as well as descriptions of

recommended use and individual product benefits.

TRUSTWORTHY INFORMATION i

Let consumers identify, compare and weigh differentiating features that are most relevant to them.

EASE OF WEIGHING OPTIONS l

These are the 3 major factors that simplify consumer decisions

#2 SELL WITH SIMPLICITY

Decision Simplicity in the purchase process is the #1 reason why consumers are likely to buy your product, do so repeatedly, and recommend it to others.

20% increase in decision simplicity results in a

96% increase in customer loyalty, 86% increase

in likelihood to purchase, and 115% increase in

likelihood to recommend.- Corporate Executive Board (CEB)

“Decision simplicity is the number one driver of likelihood to buy”

- Forbes

Read Article

http://www.forbes.com/sites/patrickspenner/2012/07/02/marketers-have-it-wrong-forget-engagement-consumers-want-simplicity


SIMPLIFYING CHOOSING WITH GUIDED SELLING

Guided Selling Tools (or “Interactive Product advisors”) are the most effective approach for retailers, brands and service providers to simplify decision making for their customers. Similar to sales associates in physical stores, Guided Selling Tools focus on the shoppers (not the products), engage them and educate them to then advise them on the most suitable product based on their individual expectations.

GUIDED SELLING ENGAGESAsks a series of need-oriented thus, easy-to-answer questions to identify

needs, wants and expectations

EASY NAVIGATION

GUIDED SELLING INFORMSExplains features and benefits of

products in a way that relates to the shopper

TRUSTWORTHY INFORMATION GUIDED SELLING ADVISES

Presents a list of suitable products, explains why they were suggested

a good fit, and offers an easy way of comparing products.

EASE OF WEIGHING OPTIONS

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#3 FINALLY, ALWAYS ASK YOURSELF:

WHAT AM I DOING RIGHT NOW THAT IS HELPING MY CUSTOMER TO MAKE A PURCHASE DECISION?


GUIDED SELLING EXAMPLES

How retailers, brands, and service providers help their customers choose.


EBAY

ebay is the world's largest online marketplace enabling folks to buy and sell various goods online. With over 100 million listings in hundreds of categories, ebay uses Guided selling to improve product discovery and make purchase decisions easier for their bidders.

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Try the advisor

http://ebay2.smartassistant.com/ebay/notebook.php




CANONCanon is a world-leading innovator, offering expertise and solutions from image capture through to digital output.

Guided Selling helps brands to navigate consumers through their assortment while communicating brand-specific benefits and educating them on new features and functions.

Try the advisor

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http://www.canon.co.uk/printers/printer-selector/




SWISSCOM

Swisscom AG is Switzerland’s leading telecommunications provider. The telco industry is known for large, unwieldy, and increasingly complex catalogues of products and services. Telco businesses are even more required to put customers’ needs at the forefront to compete. This means engaging customers and communicating offerings in a way that values and benefits can be understood easily. This is what Swisscom does with their product advisors in multiple categories such as mobile plans, mobile phone, and broadband tariffs.

Try the advisor

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http://www.swisscom.ch/en/residential/mobile/subscription-tariffs/tariff-adviser-infinity.html






MIGROS

Migros is the largest supermarket and food and non food retailer in Switzerland. Using Guided Selling solutions in-store delivers a stronger in-store retail experience to customers as they receive immediate, helpful advice. At the same time, it enhances the efficiencies of frontline staff.

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Try the advisor

http://www.melectronics.ch/cms/de/smartassistant_camera/?sprache=de&utm_medium=banner_navigation&utm_source=webshop&utm_campaign=kameraberater




KOMPLETTKomplett Group is the Nordic countries' largest e-commerce player.

In a highly competitive environment, retailers have to differentiate and position themselves as the #1 Point of Decision.

Integrating Guided Selling solutions in multiple categories allows Komplett to pick up their shoppers whenever they have a hard time making a choice and guide them through to a purchase.

A strong message and a significant USP that Komplett communicates through TV and online ads.

Watch the Commercial

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https://www.youtube.com/watch?v=KCOcPyoNaNU




6 QUICK TIPS FOR BUILDING INTERACTIVE PRODUCT ADVISORS

Your product data is just like a sales associate’s product knowledge. If there is no structured information and knowledge about the products you sell, it makes deciding much harder and there can’t be good expert advice. Make sure to have sound and structured product data before you start building your advisor.

PRODUCT DATA1

Think about how you would advise your mother, grand father, aunt etc. basically anybody who is not familiar with your category. Focus on their needs and product expectations, the problems they want to solve, their usage intentions etc. Don’t get too technical. And remember, you’re not your buyer! Start sketching and designing potential questions, answers, and decision paths and ask other people to comment on it to help you refine your advice concept.

CONCEPT2

SMARTASSISTANT Technology features everything you need to transform your concept into an actual interactive product advisor. The easy to use WYSIWYG editor and sophisticated rule engine allow you to quickly create questions and answers, rearrange elements via drag ‘n drop, and “tell” the engine how dynamic product recommendations should be generated – all without programming skills.

BUILD3

Design with the customer in mind ("Don't Make me Think"). Does the interface make sense, are the interactions and effects tasteful and quick, is it overall appealing to my customers, does it comply with my branding guidelines? SMARTASSISTANT's design editor gives business users full control to customize every aspect of their advisors such as colors, element positioning, and interaction effects.

DESIGN4

Make your interactive product advisor available on your storefront where shoppers who are in the process of making a decision and in need of your advice can find them easily -Examples: Banner, Category page, Start page, Dedicated Buying guide pages,…

INTEGRATE5

Consumer behavior is never static and your advisors shouldn’t be either. Make sure to evaluate your advisor analytics data regularly. It contains valuable information about consumer behavior, shopping motivations and market trends. The data helps you to A/B test and optimize your advisors, ensuring that you always share the best possible advice.

TEST, TEST, OPTIMIZE, AND YES, TEST6

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Learn More About SMARTASSISTANT’sAll-in-One Guided Selling Platform

SMARTASSISTANT Platform is the first cloud-based, enterprise-class Guided Selling technology that brings together all elements you need to build interactive product advisors. See our solution, learn more about Guided Selling, or talk to a specialist today.

Learn more about Guided Selling Try the Software Talk to a specialist

WYSIWYGEditor

`

Dynamic RuleEngine

_Advisor

LocalizationA/B Testing Multichannel-

optimizedAnalytics

GAdvisor and

data monitoring

DesignEditor

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Helping shoppers choose products they’ll love!

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© 2015 Smart Information Systems Inc./ smartassistant.com / (888) 414 8764 / [email protected]

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the paradox of choice and guided selling solutions

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