With apologies to Jay Leno, Condoleezza Rice and others, my favorite featured speaker at last week’s Association for Advanced Life Underwriting (AALU) Annual Meeting in Washington was Daniel Pink, the bestselling author of six books, including his latest, “To Sell is Human: The Surprising Truth About Moving Others.”
His observations on sales and psychology seemed to ring very true, and I was particularly interested in a study he mentioned about how reducing choices for customers can increase acceptance. In the first week of the study, a trade show booth displayed 24 varieties of jams. But the next week, only six varieties were displayed. While more people tasted jams the first week, only 3 percent bought. The second week, with only six choices, 30 percent of booth visitors made a purchase. That’s 10 times more sales achieved while offering only one-quarter of the product selection.
The lesson? Being presented with too many choices can prevent customers from purchasing. Reducing the number of choices for the customer can increase acceptance.