Sunday, May 04, 2008

Focus on your Niche


Henry Ford supposedly sold lot's of cars with very little choices offered to his customers.

You can have it in any color you want as long as it is black.

As a business person, do you overwhelm your customers with too many choices?

A couple years ago, my company did everyone a favor by eliminating a couple of radio station choices. We sold off two of our stations and combined a couple and went from 6 options to 3 for our clients.

Last night my wife and I were at a restaurant that had at least 50 items on the menu. Yet there are only 5 things that each of us ever eat there.

Perhaps one way to get your customers to become more loyal to you is to narrow your focus. Then you can build your brand and stand for something instead of everything.

Here's more on that subject:

We're Drowning in Choice. Help!

If you go to an In-N-Out Burger, don't expect to find an extensive menu. It includes three variations on the same sandwich: a hamburger, a cheeseburger and the Double Double, which comes with two patties and two slices of cheese. You can also order a side of fries and a shake. But that's all. No chicken strips, no salads, no stuffed jalapeƱos, no kids' meals. You can customize orders from the so-called secret menu—animal style, for instance, adds grilled onions—but dining options are unapologetically limited. And you know what? In-N-Out devotees keep the lines long and the service slow.

In a post at MarketingProfs Daily Fix blog, Paul Barsch argues that there might be something in this less-is-more approach.

"With customers drowning in 'choice' some companies are finding it easier to meet customer needs by simplifying—portfolios, products and services," he says. "Indeed too many choices can cause our customers to experience anxiety and mental exhaustion."

Barsch cites Ford Motor Co.'s decision to simplify the Lincoln Navigator, which had 128 options for its console alone. The Wall Street Journal determined the number of possible combinations at 3.85620482 x 10 to the 215th power. Can you just see a customer's eyes glazing over?

Your Marketing Inspiration: "[W]e need to help our companies focus and prioritize on the things that matter most to our customers," says Barsch.

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