Think about all the decisions you have made today. What to eat, what to wear, where to go, or who to see. We don’t realize that these types of things are decisions because it is something we do everyday, so it comes naturally. Now think about all the choices you had when choosing what to eat, what to wear, where to go and who to see. We are given so many choices in life that the bigger decisions could become overwhelming and the smaller ones are easy breezy.
According to Sheena Iyengar- speaker for “How to Make Choosing Easier”- said that she used to shop at a high-end grocery store that gave the customers so many choices. They had 348 types of jam to choose from. She conducted a study where they gave customers a sample of either six types of jam or twenty four types of jam.
What they found were that people were more likely to buy from the table that only had six types of jam. They found that people are more likely going to choose products when there is not as many choices- Iyengar calls it choice overload.
For businesses, you need to remember:
- Less is more- being able to cut certain products can increase sales and decrease cost.
- Concretization- being able to distinguish the consequences of each choice being made.
- Categorization- customer has more choices when products are in categories.
- Complexity- more decision for complex products such as buying a car
These are designed to help you manage choices for you and for the people you are helping.
Malcolm Gladwell- speaker of “Choice, Happiness and Spaghetti Sauce”- talks about a psycho physicist named Howard that conducted studies on foods to see what the people wanted. Gladwell used the example of Ragu pasta sauce compared to Prego pasta sauce. They wanted to know what made it more appealing. Howard conducted many focus groups to see how Americans like tomato sauce. The findings were they either likes plain sauce, spicy sauce or extra chunky sauce.
The people in the focus groups had many choices of what type of sauce they liked to eat. His focus groups changed the way the food industry made people happy.
Howard also found that in order to make people happy, you need to give people things that are more expensive, flashy and fancy. He used Dijon mustard as an example. Regular mustard compared to Dijon mustard was that Dijon was in a glass jar, more expensive, darker color, different texture and more.
If businesses today asked and gave their customers what makes them happy or things they want, then their business would be successful in the long run because they are fitting the needs to their customers.
The future of businesses today is geared more toward sharing with one another. We need to know what makes our customers happy and how to make them keep coming back. According to Lisa Gansky- speaker for “The Future of Business is the Mesh”- mesh is “a fundamental shift in our relationship with stuff.”
She talks to us about how we share public things and not even know we are.
A mesh company has three things
- Our ability to connect with each other
- Mobile devices that allow us to find each other and people and places
- And physical goods that we can track that are moving. Things that are readable on a map like the train schedule.
In a mesh company, we allow the access of goods and services to become easier. Gansky uses the example of Zipcar. Zipcar allows people to rent cars for a short period of time. When I was visiting The University of Alabama, we needed to rent a car to get me to the airport. The airport is about an hour from the school, so this car was affordable and easy to access. We looked online to find the nearest Zipcars and when a car would be available so that I could get to the airport on time.
The creators of Zipcar knew that “A brand is a voice and a product is a souvenir.” They made their company fresh and cool and sexy, they used nice cars so it is more appealing and chose a certain demographic that would be more likely to use their product. They gave people the option for different types of cars depending on what they are using the car for.
Gansky says that mesh businesses like Zipcar or Netflix make sharing irresistible and delight is contagious. If people are talking or tweeting about a certain product or service they have experienced, they are likely to see an impact.
“Mesh companies create, share and use social media, wireless networks, and data crunched from every available source to provide people with goods and services at the exact moment they need them without the burden of expense of owning them outright.” – Lisa Gansky