The more effort your brain requires to make a selection, the less likely you are to make any decision at all. Reducing cognitive burden can increase the probability of sales, reduce mistakes or increase engagement. Costco is a great example where I (and many others judging by their carts) always buy more than I intended to. Why does this happen and how does it relate to your business activities? It’s all about reducing the number of customer decisions and focusing on the question of whether the item is desired.
So why is Costco so good at maximizing their sales? They focus on identifying and reducing barriers to your purchasing decisions. Here are the some of the attributes that you don’t have to think about:
- high quality – consistent high-quality items gives you confidence that new items are good.
- one type – no need to choose among four different brands or the three types of maple syrup (light, medium or dark), just get the only maple syrup available
- easy returns – receipts are never required and returns rarely challenged so you know returning an item is almost hassle free
- one size fits all carts – there is only one size of an item – extra jumbo – so you don’t price compare between sizes or have to think about the S,M,L,XL maple syrup
- price – competitively priced, not always the cheapest, but you feel it is good value for the four large tubes of toothpaste
So, if you see a product you might want, you will likely just get it because you know it is a quality item at a reasonable price, and can easily be returned if it doesn’t work out.
These principles apply not only to retail but in diverse industries like medical devices, online businesses, shipping and receiving departments or operations to name a few. What mental friction is occurring with your potential customers as they think about buying or using your product or service? Put yourself in your customer’s place and think about the “what ifs” and how they might result in an “I will think about it” or “I will keep looking” rather than a sale.
