Wednesday, December 23, 2009

Simplify View of Products

A recommendation engine can lead to showing a targeted set of items, focusing the customer on the more desirable items. The engine driven by predictive analytics determines the items that the customer is more likely to enjoy. This improves the decision process by removing information overload.

For example, Google Search returns the most likely results first. Google’s predictive analytics removes the need to click through pages of insignificant results. Similarly, Amazon shows items that likely fit the need of the customer, allowing for ease of viewing and decision making.

Mike Shor, a professor at the Owen Graduate School of Management, wrote an article on the benefits of simplifying the decision-making process by decreasing the number of items offered.

Excerpt:

“...often-cited experiment in which people are given the chance to taste a sampling of jams, asked to pick their favorite, and given coupons to buy one. One group selects from 6 jams, another from 30. Researchers found that people who tasted 6 were more likely to buy something than those who tasted 30—the latter simply had too many choices.” - Link: Article

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