While offering a wide array of choices was once considered favourable, overwhelming customers with options in the noisy ad world can now lead to analysis-paralysis and a massive decrease in action.
This isn't just relevant for the purchase phase, it's relevant to each stage of the customer journey. From choosing what use cases to demo/trial, all the way to 'where & how' they should best implement/roll-out your product.
We need to treat the buyer journey like an extension of the user journey - leaning on product best practices.
Startups should be the leading experts in their niche (a serious issue if you're not). As such, they should intimately understand the problems faced by their industry/market, and thus know exactly what needs to happen to solve them (insert your product here).
To boost conversions, it's time to embrace the strategy of "less is more" and prescribe targeted solutions, instead of listing options if we have any hope of encouraging action.
Increase marketing sales conversion rates: Examples from the leaders
Take Netflix, for instance, the streaming giant initially offered an extensive library of content, giving subscribers a plethora of choice. However, this abundance of options often left users indecisive and unsure of what to watch, resulting in delayed decision-making or even abandonment. Netflix realised the importance of reducing choice overload and introduced personalized content recommendations based on users' viewing habits. By prescribing tailored suggestions, they simplified the decision-making process, leading to increased user engagement and retention.
Another one of the most powerful examples of "prescribing a solution" can also be seen in the success of Amazon's "Frequently Bought Together" feature. By recommending complementary products based on customers' previous purchases, Amazon not only increases the average order size but also simplifies and shortens the shopping process. This approach proves that customers appreciate being presented with relevant choices rather than an overwhelming selection.
People want solutions spoon-fed to them, not novel sized menus...
What about startups?
Similarly, in the context of startups and founders, simplifying choices can lead to faster actions and higher conversion rates. Whilst showing your customers how much choice they can have and how wonderful all of your capabilities are - it's more likely this will overwhelm and confuse them, than it is to excite and attract them. People want solutions spoon-fed to them, not novel sized menus...
Nevertheless, before we can begin prescribing options to our audiences, we need to first understand what they may need (i.e. a problem for their solution). In a perfect world we would have a plethora of data and insights similar to the likes of Amazon and Netflix, to narrow in on what each person specifically would want. However, most startups aren't so lucky. Therefore we need to take the industry knowledge & previous customer experience we have and lead by explaining the patterns you see back to them!
The thing no one seems to talk about is explaining the markets' problem back to them. I can't count the number of times I have spoken to a customer for the first time who seems apprehensive and doesn't seem to 'get' the product, even after seeing a bunch of marketing content. However, when I talk about others like them in the industry and list the examples of the problems THEY encounter regularly and how THEY operate, the customer seems to spark up and have an 'ah ha!' moment and say 'that's exactly right, I do that too!'. Then all of a sudden they are all ears to the solution and completely understand the value.
When I talk about others like them in the industry and list the examples of the problems they encounter regularly, they spark up and have an 'ah ha!' moment
This should be the pivotal point for all customer recommendations moving forward (and not just for the sales team). In marketing speak, this is your 'problem statement'. However, instead of focusing only on the corresponding value proposition (i.e. your solution), we need to break it down further into recommended steps and actions that we have seen can lead them to the respective solutions.
Examples of where should this happen?
When reflecting on previously successful customer acquisition journeys, what pattern(s) have you seen works best:
Once they see the website and are interested, would you recommend they:
Watch an intro video?
Start a trial?
Once they see they watch/trial it and they're still interested, would you recommend they:
Book a demo?
Start a trial?
Once they like the product and are considering using it, would you recommend they:
See a plan of how to get started?
Or just be sent the payment gateway to purchase and move on?
If they hesitate and go quite, would you recommend they:
Schedule a chat to answer questions?
Receive a business case template?
Receive info to share with other stakeholders?
You should be able to break this down to almost any and all steps, all of which based on how successful customers have bought and used your product in the past.
Product people are amazing at this when it comes to users experiencing the product - sales and marketing people need to adopt the same mentality.
Product people are amazing at this when it comes to users experiencing the product - sales and marketing people need to adopt the same mentality.
Conclusion
Imagine a phone retailer (for those in Australia, Telstra do this every time...) offering customers just two well-curated smartphone options that users typically buy, catering to two typical types of user needs and budgets. By doing so, they remove the complexities of choice and guide customers towards a quicker, more straightforward purchasing decision. I.e. A person may no they want a phone, but aren't really sure what type for them. In conclusion, in the competitive world of startups and founders, offering too many choices can hinder conversion rates. By adopting a strategy of prescribing solutions based on market data and feedback, startups can streamline decision-making, enhance customer satisfaction, and ultimately boost conversions.
Keep an eye out for the big tech players like Netflix, Amazon, and other leading brands that successfully implemented this approach. Remember, in today's fast-paced world, simplicity and personalization are the keys to winning over customers and driving business growth.
People want solutions spoon-fed to them, not novel sized menus...
If you would like to chat more about this guide, feel free to click below and reach out for a free 30 minute consulting session!