Tuesday, June 1, 2010

Take Occam’s Razor to Your Shoppers

Occam’s Razor—attributed to the fourteenth century logician William of Ockham—says that we should trim out the excess from our theories. Thoughts of Occam’s Razor come to my mind in response to statements from a recent meeting sponsored by the Advertising Research Foundation. The thrust of the statements was that most changes made on the basis of consumer research fail.
     The response of some researchers was, “But we’re able to offer so much data gathered with so many methods.” The response to that, and one I agree with, is that having lots of data is good and using a variety of tools is great, but once we analyze data, we must make advice simple. We must tell the retailer what to do and what to avoid. We need to say why the tactics should work, but that, too, must be straightforward.
     Because of the complexity of consumer behavior, the answer to many retailer’s questions could be, “It depends.” But that’s not what you want to hear. You want an answer that’s sufficient to give you a retailer’s edge over the competition. You want advice that’s simple enough for you to remember and communicate to staff.
     President Harry Truman is quoted as saying, “I want a one-armed economist.” He was frustrated by advisors who answered with, “On the one hand…. But on the other hand….” In deciding what you’ll do to improve your profitability, recognize that adding complexity can give better results. When it comes to influencing your shoppers’ behavior, what works best does depend on a number of factors.
     But always be looking for ways to make it simpler. And whenever the complexity gets in the way of your being able to use the tactics or train others in using them, trim away in the spirit of Occam’s Razor.

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