The Counterintuitive Impact of Reducing Choices: A Case Study
In general, it’s widely understood that reducing resistance in the buying process can lead to increased conversions. However, as a real-world example from MECLABS shows, simplifying the purchasing process can sometimes backfire—dramatically.
The Experiment: Reducing Clicks and Choices
Initially, MECLABS offered three distinct membership terms for their product:
- 1 Month
- 6 Months
- Annual
Most customers were opting for the monthly subscription. To streamline the buying experience and reduce friction, MECLABS decided to simplify the process by offering only the monthly option.
The Unexpected Result: A 40% Revenue Drop
Instead of improving results, this change caused a 40% drop in revenue. The outcome surprised the team, but a deeper analysis revealed the root cause.
Why Sales Dropped: Ignoring Two Key Psychological Principles
- The Reactance Effect (Resisting Control)
When customers feel like their choices are being restricted—such as only being given one subscription option—they may react negatively. This psychological phenomenon, known as reactance, triggers a desire to assert independence. In this case, customers abandoned the checkout process altogether, likely perceiving the lack of options as a form of control. - The Power of Anchoring
Anchoring is the psychological principle where customers judge the value of an option based on its comparison to others. When three membership terms were available, customers could compare prices and perceived value, making it easier to justify their choice. Removing the additional options eliminated these points of comparison, leaving customers unable to assess whether the remaining price was a good deal.
The Lesson: More Isn’t Always Less
This case demonstrates that while simplifying the customer journey can reduce friction, it’s equally important to maintain choice and context. A lack of options may:
- Undermine customer autonomy, leading to drop-offs.
- Hinder decision-making, as there’s no frame of reference to evaluate the offer.
The Takeaway
Providing multiple pricing or subscription options can significantly enhance the decision-making process and increase conversions. By giving customers the ability to compare and choose, you empower them to feel confident in their purchase—while also safeguarding against psychological reactance.
For more on how too many or too few options affect conversions, check out this blog post on Conversion.com.