According to a number of studies, giving customers too many options makes it less likely they will buy anything. In one oft-cited experiment, grocery shoppers were given the choice of a dozen flavors of jam to choose during a promotion. They sold more jam overall, however, when they gave shoppers fewer choices.
Too many options tend to lower response, ostensibly because shoppers get overwhelmed and can’t decide which to choose. Too many choices, apparently, means too many chances to make a poor choice.
But if too many options lower response (and profits), can the same be said about giving customers too few options?
Most lawyers give prospective clients only two choices—hire me or don’t. What would happen if they offered more options?
If you handle estate planning, for example, you might offer a basic estate planning package and a more comprehensive package. Does this make it more likely clients will hire you? Will you generate more revenue if you give clients two choices instead of one?
When I sold my referral marketing course, I started by offering one option. You could buy the course or not. When I added a Deluxe version, I got more sales and more revenue. (60% bought the higher-priced Deluxe package).
Two options were much more lucrative than one.
But selling courses and selling legal services aren’t the same thing. The only way to know what is best for you is to test different offers and see what happens.
Try one option, e.g., buy or don’t, vs. two options, e.g., Basic or Comprehensive, and three options, e.g., Basic, Comprehensive, and something in between.
Crunch the numbers.
But keep in mind that getting more new clients might not be as profitable as getting fewer new clients who pay a higher fee. And don’t forget the “back end”–the lifetime value of a client via repeat business and referrals.
So, it’s complicated. But worth testing different options. Just not too many.
