How many of you have heard of Occam’s Razor?
It’s a theory about problem solving.
It refers to William of Occam – an influential 14th century philosopher and theologian. He developed the theory.
‘Razor’ refers to shaving away unnecessary assumptions.
Occam’s Razor denotes any principle that allows you to quickly remove unlikely explanations or avoid unnecessary steps.
Today the term is broadly applied as a rule of thumb to simplify decision making.
An example… You have a headache.
You could catastrophise. Think about all the potential causes. Then make a mad dash to A&E, fearful for your life.
Or you could think you are probably dehydrated. You drink a glass of water. Your headache disappears.
Occam’s Razor says that the simplest explanation is usually the best one.
Why are we talking about this? In the FMCG world, we often want to do clever things.
The brilliantly creative communication campaign. The innovative new product launch. The econometric driven promotional strategy.
These all make sense to us. We’ve been working on the communication campaign for months. The innovation launch for months. The new promotional strategy for months. We know everything there is to know about them.
But shoppers don’t. They know a lot less. They care a lot less.
They see the communication. But often can’t tell what product the communication is for. They see the new product. But can’t work out why they should buy it. They see the promotion. But don’t have the time to do the maths.
Shoppers want to make simple choices. Ones they can make quickly. That they can feel good about.
For shoppers – as in life – the simplest explanation is usually the best one.
So, how can you apply this?
Promotions. Don’t get too clever with promotional mechanics. Trying to optimise for the perfect level of discount or the perfect multibuy. Instead use promotional mechanics that shoppers are familiar with. That allow them to quickly judge value. If there are two promotions side by side, shoppers will nearly always choose the simplest one.
Don’t overcommunicate. Trying to communicate all the ways that a promotion is good. The base price. The promoted price. The cash discount. The % discount. Instead just say one thing. The single biggest thing that will signal value to shoppers.
The promotional battle is not fought on a spreadsheet. It’s fought in store (or online). Use simple mechanics expressed in simple ways.
Communication. Don’t say everything that you could say about a product. No matter how important you think those things are. Most of it won’t be seen by shoppers. Most of it won’t be taken in by shoppers. Instead focus on one thing. The single most important thing you can say. That shoppers will understand. That will motivate them to buy
Then say it in a simple way. Few words. Short words. Everyday language. The battle at shelf is not about who has the best concept. It’s about who can communicate it in the simplest and most compelling way.
Merchandising. Don’t get lost in the branches of the decision tree. Trying to figure out how on earth you are going to translate it to shelf. Instead look at the shopper behaviour you are trying to drive. Then layout the category in a way that makes it easiest for shoppers to behave in that way. Great shelf layouts and merchandising don’t reflect shopper behaviour. They direct it.
So, make things as simple and intuitive as possible. As easy as ABC if you’re Herbs & Spices.
These are just a few examples. There are plenty more. Think pricing strategy. Think pack design.
The same principle applies to ALL communication.
Think internal communication. What is the simplest way you can explain your strategy internally? That people internally will understand. Will remember. Will be able to share.
Think external communication. What is the simplest way you can explain your strategy externally? That people externally will understand. Will remember. Will be able to share.
We often want to add. To explain more.
When really we need to subtract. To explain less.
The simplest explanation is usually the best one.
Feel free to forward. Have a great weekend. Speak to you in a fortnight.