A recent article in The Fiscal Times defines the repercussions of Analysis Paralysis in our lives. Too many choices lead to confusion, which, in turn, often leads to procrastination. This confusion can have a severe impact on our lives in terms of lost opportunities and also financial loss. The repercussions are not limited to individuals; they can affect businesses as well. No other industry has perhaps faced the level of damage from analysis paralysis like retail. Increasing competition and globalization means stores feel the need to expand, yet every expansion has the potential to fuel analysis paralysis and harm sales. It’s ironic but true.
The retail and merchandising sectors depend on demand and the flow of goods to bring in revenue. If a buyer’s confusion and procrastination leads to the loss of a sale, then survival of the business can be at stake. To avert such disasters while offering a wide array of choices, one has to devise smarter strategies to direct consumer action towards definite sales. Owners and/or managers must assist customers in understanding the differences between similar items. There is a fine balance between offering enough choices, but not so many as to depletes sales. This understanding is the art of managing analysis paralysis and here’s how you can begin.
Ways to Combat Analysis Paralysis
Now that we have addressed the downfalls of analysis paralysis let’s take a look at some ways you can avoid it.
Tip #1: Inform. Yes, there are a large number of items on the shelf, all in the same category and all with more-or-less the same features. The only real difference, at least in the eyes of the customer, may be the price. You cannot escape from the expansion, so it’s time to manage the products on display. Instead of relying on brands to market their products, you have to design a whole new way to inform your buyers about these products. Set a schedule for prioritizing one at a time or a few at time so that every product goes through a solid publicity cycle. This may lead to taking a hard look at what is really selling and why. Drop any losers; look at new products; and, push the products you know are working. Make sure that your marketing tactics appeal to the psyche of your buyer demographics instead of being generic. Appeal to their needs, offer what they desire, and give top-level information on the products so customers can make a quick, concise decision.
Tip #2: Innovate. Retail has deep roots in innovation, which are not readily apparent; yet, they form the solid foundation for smart merchandising. You cannot emulate others blindly and hope to excite your buyers into buying more. In fact, boring and mundane displays that resembles any competitors’ stores will only result in flat sales. You need to stand out. Research and innovate new ways to display your merchandise so that it catches the consumer’s attention and draws them to buy. The best motivator is still money, so when you have two competing brands offering the same features, set them apart by offering innovative deals and discounts on each (one at a time) so that choosing one over the other is easier. Out of the box marketing tactics and below the line promotions also go a long way to boost sales.
Tip #3: Incite. The first two steps, are a way to attract customers to your store and deal with the inventory you currently carry. You cannot hope to stem analysis paralysis effectively, however, unless you take a more direct and aggressive stance. Smart merchandising is not just about great displays and expanding products; that is basic criteria for retail. Intelligent business maneuvers here mean devising strategies that will constantly pit each product against the other and invoke customer interest. You have to incite their brand loyalties. You have to bring out hidden desires. You have to poke them into picking up products from the shelf that they will be compelled to buy. Of course, certain brands will hold more sway over buyers, but smart displays can often bring smaller brands to the forefront as well. It is your job to incite the latent impulse shopper in all consumers so that they not only buy what they need without dithering, but also what they may not need, without question.
Your growing retail business will see a bright future when you keep expanding your product line and dropping losing products along the way. Applying smart merchandising techniques will help to tame analysis paralysis.
Need some help to reduce analysis paralysis in your store? Specialty Store Services can help! Our retail experts will guide you through choosing the right display solutions for your store and put an end to analysis paralysis. Call 800.999.0771 or visit our website for more information.