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Why Too Many Choices Make People Buy Less
How to fight decision fatigue with the correct number of options
Good Morning! Melinda Gates recently shared that her hiring manager at IBM told her to take a job at some small company called "Microsoft" if she got an offer. She listened, met Bill, and well... you know the rest. So, if a hiring manager ever suggests working for their competition instead, do it. You might just meet your spouse and make a few billion dollars. 🤷♂️
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Why Too Many Choices Makes You Lose Deals
Wanna hear something counterintuitive?
Offering more choices will probably make you sell less.
To prove it, 2 psychologists set up a simple experiment at a local food market.
On the first day, they set up a display table with 24 different kinds of jam. On the second day, they set up the same table with only 6 kinds of jam.
Here's where it gets interesting: While the larger display attracted more attention, people were 10 times more likely to buy the jam when there were only 6 options.
Fewer options led to more sales.
And if this principle works for something as simple as jam, imagine its impact on complex B2B sales decisions.
So today, we're breaking down why too many choices kill deals, and how to structure your offerings to make buying easier.
The Psychology of Too Many Choices
When you overwhelm prospects with options, something interesting happens in their brain.
First, they get mentally exhausted. Each option requires evaluation, comparison, and imagination of potential outcomes.
Then the doubt creeps in. More options mean more potential for making the wrong choice. And in B2B sales, where decisions impact careers, that fear of choosing wrong becomes paralyzing.
So what do they do? They delay. They procrastinate. They tell you they need to think about it or run it by the team.
It's the same reason you spend 30 minutes browsing Netflix, just to give up and watch The Office again. When there’s too many choices, our brain often chooses the easiest option: making no choice at all.
And in sales, no choice means no deal.
The Magic Number = 3
Research consistently shows that three options is the sweet spot.
Three options give us enough choices to feel in control, but not so many that we get overwhelmed.
In sales, this typically plays out as "Good, Better, Best" pricing.
The lower tier sets the floor, the middle tier becomes the anchor, and the premium tier makes the middle look more attractive.
How to Structure Your Options
Most sales reps make a crucial mistake when presenting options - they only change the numbers.
It looks something like this:
Basic plan = 100 credits.
Pro plan = 150 credits.
Enterprise = 200 credits.
But here's the problem - you're making your prospect do math instead of solving their problem.
Instead, each option should structure your tiers around different types of customers and their needs.
Starter = is perfect for teams just getting off the ground.
Growth = helps scaling companies move faster.
Enterprise = built for organizations dealing with complexity.
Each option should tell a story. When a prospect looks at your pricing page, they should immediately know which option they want, and/or which one is best for them.
Why timing matters
Last but not least, timing plays a major role in how your prospects make decisions.
And I’m not just talking about catching your prospect in a buying cycle.
Your prospect's mental energy isn't constant:
Morning meetings = Fresh mind, with a full day ahead.
End of day = Decision fatigue, and ready to call it a day.
End of quarter = Extra pressure for everyone.
Try to schedule important decisions when your prospect is most likely to have the mental energy to make them.
How many choices do you typically present to prospects? |
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