How chatbots can help solve the paradox of choice

Nov 11, 2020

We explore how chatbots can help retailers solve the paradox of choice.



Too much choice will kill you if you can’t make up your mind; torn between a product and the one you leave behind, you are headed for the checkout, but… ok we’ll stop there. What we meant to say is that choice can be a complex topic both in life and in marketing.

Some marketers and psychologists are supporters of the so-called “paradox of choice” theory or the idea that customers tend to get confused by too many options and end up not buying anything. A related theory suggests that customers faced with many options to choose from will buy one but won’t be as satisfied with their purchase.

Choice can be good if managed well

The latter is certainly a familiar feeling, and probably related to the lagging feeling that perhaps one of the options we didn’t pick might have been better. That said, on the other side of the coin, recent studies suggest that choice may also play a positive role by enticing people who had not been previously interested in the product.

For brands, if they manage to mitigate the effects of the paradox of choice, having more variety can be a great win-win situation where they attract more potential customers and close more sales. The key to solving the challenge is reducing friction in the sales process.

After all, friction is what the paradox of choice creates. It confuses consumers, causing them to slow down the purchase process and fall out of the funnel.

Chatbots are the perfect oil for your sales funnel

The best way to reduce friction is by using something that people are already accustomed to using on a regular basis. Otherwise, the mere act of having to open and use the tool would add friction back into the system.

Messaging apps like WhatsApp, Facebook Messenger or WeChat are the perfect tool. Modern consumers are using them heavily, and they have very high adoption rates. They provide an ideal environment for personalized communication and can host chatbots capable of understanding and answering questions using natural human language.

Some companies like Lego and H&M are already using them to help people pick products from their catalog. Others have gone a step further and are teaching users how to use their products as a way to boost sales. Sephora for example uses it to teach people how to use makeup correctly, providing value to the chatbot’s users and increasing the likelihood that they will buy the company’s products.

If you are thinking of joining the chatbot revolution, our team of experts will be more than happy to help you find opportunities and pick the best solution for your company.

You can reach out to them using the link below.