We are told to customize, expand, and provide more options, but that might be a silent killer for our conversion rate. Using behavioral psychology and modern product design, this piece explains why brands like Apple use fewer, smarter choices to convert better.
Jam-packed decisions
Imagine standing in a supermarket aisle in front of the jam section. How do you decide which jam to buy? You could go for your usual jam, or maybe this is your first time buying jam. Either way, a choice has to be made. Or does it?
You may have seen the vast number of choices, gotten overwhelmed, and walked away. The same scenario was reflected in the findings of a 2000 study by Iyengar and Lepper that explored how the number of choice options can affect decision-making.
Iyengar and Lepper set up two scenarios; the first customers in a random supermarket being offered 24 jams for a free tasting. In another, they were offered only 6. One would expect that the first scenario would see more sales. After all, more variety means a happier customer. However:
- While 60% of customers stopped by for a tasting, only 3% ended up making a purchase.
- On the other hand, when faced with 6 options, 40% of customers stopped by, but 30% of this number ended up making a purchase.
The implications of the study were evident. While one may think that more choices are better when faced with the same, decision-makers prefer fewer.
This phenomenon is known as the Paradox of Choice. More choice leads to less satisfaction because one gets overwhelmed.
This analysis paralysis results from humans being cognitive misers that is decisions that require deeper thinking feel exhausting and like they come at a cognitive cost. In such scenarios, we tend not to make a choice or choose a default option. Even after a decision has been made, in many cases, regret or the thought of whether you have made the ‘right’ choice can linger.
A sticky situation
However, a 2010 meta-analysis by Benjamin Scheibehenne was unable to replicate the findings. Scheibehenne questioned whether it was choice overload or information overload that was the issue. Other researchers have argued that it is the lack of meaningful choice that affects satisfaction. Additionally, Barry Schwartz, a renowned psychologist and the author of the book ‘The Paradox of Choice: Why Less Is More,’ also later suggested that the paradox of choice diminishes in the presence of a person’s knowledge of the options and if the choices have been presented well.
Does that mean the paradox of choice was an overhyped notion? I conducted a mini-study to test this hypothesis.
From shelves to spreadsheets: testing the jam jar theory
I created a simple scatterplot in R using a publicly available dataset from the Brazilian e-commerce site Olist. Olist is Brazil’s largest department store on marketplaces. After delivery, customers are asked to fill out a satisfaction survey with a rating or comment option. I analysed the relationship between the number of distinct products in a category (choices) and the average customer review (satisfaction).
Based on the almost horizontal regression line on the plot above, it is evident that more choice does not lead to more satisfaction. Furthermore, categories with fewer than 200 products tend to have average review scores between 4.0 and 4.3. Whereas, categories with more than 1,000 products do not have a higher average satisfaction score, with some even falling below 4.0. This suggests that more choices do not equal more satisfaction and could also reduce satisfaction levels.
These findings support the Paradox of Choice, and the dataset helps bring theory into real-world commerce. A curation of lesser, well-presented, and differentiated options could lead to more customer satisfaction.
Furthermore, the plot could help suggest a more nuanced perspective; people want more choices, as this gives them autonomy. However, beyond a certain point, excessive choice overwhelms rather than empowers, leaving people dissatisfied. Many product strategies reflect this insight: the goal is to inspire confident decision-making rather than limiting freedom. A powerful example of this shift in thinking comes from Apple’s history.
Simple tastes, sweeter decisions
It was 1997, and Steve Jobs had just made his return to Apple. The company at the time offered 40 different products; however, its sales were declining. Jobs made one question the company’s mantra,
“What are the four products we should be building?”
The following year, Apple saw itself return to profitability after introducing the iMac G3. While its success can be attributed to the introduction of a new product line and increased efficiency, one cannot deny that the reduction in the product line simplified the decision-making process for its consumers.
To this day, Apple continues to implement this strategy by having a few SKUs and confident defaults.
Apple does not just sell premium products; it sells a premium decision-making experience by reducing friction in decision-making for the consumer.
Furthermore, a 2015 study based on analyzing scenarios where fewer choice options led to increased sales found the following mitigating factors in buying choices:
- Time Pressure: Easier and quicker choices led to more sales.
- Complexity of options: The easier it was to understand what a product was, the better the outcome.
- Clarity of Preference: How easy it was to compare alternatives and the clarity of one’s preferences.
- Motivation to Optimize: Whether the consumer wanted to put in the effort to find the ‘best’ option.
Picking the right spread
While the extent of the validity of the Paradox of Choice is up for debate, its impact cannot be denied. It is still a helpful model that can be used to drive sales and boost customer satisfaction. So, how can one use it as a part of your business’s strategy?
Remember, what people want isn’t 50 good choices. They want one confident, easy-to-understand decision that they think they will not regret.
Here are some common mistakes that confuse consumers and how you can apply the Jam Jar strategy to curate choices instead:
- Too many choices lead to decision fatigue.
Offering many SKU options usually causes customers to get overwhelmed. Instead, try curating 2–3 strong options that will cover the majority of their needs.
2. Being dependent on the users to use filters and specifications
When users have to compare specifications themselves, they usually end up doing nothing. Instead, it is better to replace filters with clear labels like “Best for beginners” or “Best for oily skin.”
3. Leaving users to make comparisons by themselves
Too many options can make users overwhelmed. Instead, offer default options to show what you recommend. This instills within them a sense of confidence when making the final decision.
4. More transparency does not always mean more trust
Information overload never leads to conversions. Instead, create a thoughtful flow that guides the users to the right choices.
5. Users do not aim for optimization
Assuming that users will weigh every detail before making a decision is not rooted in reality. In most cases, they will go with their gut. Instead, highlight emotional outcomes, benefits, and uses instead of numbers.
6. Not onboarding users is a critical mistake
Hoping that users will easily navigate a sea of products without guidance is unrealistic. Instead, use onboarding tools like starter kits, quizzes, or bundles that act as starting points.
7. Variety for the sake of variety
Users crave clarity more than they crave variety. Instead, focus on simplicity when it comes to differentiation.
And lastly, remember that while the paradox of choice is a helpful tool in your business strategy arsenal, more choice is not inherently bad. It is the lack of structure in the decision-making process that is the problem. Clear framing will always make decision-making a seamless experience for both your consumers and your business.
How jam jars explain Apple’s success was originally published in UX Collective on Medium, where people are continuing the conversation by highlighting and responding to this story.