MedTech + Mindset Newsletter #011

Welcome to the MedTech + Mindset Newsletter! 

This week we talk about Getting Unstuck, Why Investors aren't Investing, Decision Fatigue and Nobody is Great Off the Cuff.

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1. Top Reasons Investors aren't Investing

Insight from Matt Tucker

1. Your product doesn’t appear ready, fleshed out, or plausible to bring to market.
2. You don’t have a compelling business plan.
3. Your founding and management team doesn’t inspire confidence.
4. Investors don’t feel like you can raise additional capital for growth in follow on rounds.
5. You don’t have some evidence that customers will be willing to pay for the product.
6. Your Intellectual Property protections are suspect.
7. Investors don't believe there is a substantial market for the product.
8. You haven’t convinced investors your business model is scalable over time.
9. They don’t feel the management team has enough skin in the game (personal cash or time invested).
10. The math and valuation doesn’t work out to give them a lucrative and attractive exit. 

2. Decision Fatigue

Insight from Natanya Wachtel-Jones

Have you ever visited a supermarket and felt overwhelmed by all the options and unable to decide which item to pick?

It's common.

When it comes to making choices, people enjoy having a variety of options, but if there are too many...they buy less. 

This is the conclusion that a Columbia University study reached.

In a study, researchers offered a different number of jam options to potential buyers. Some were given six choices and others 24 options.

The bigger variety of jams attracted more attention and more potential buyers.

But...it didn't generate nearly as many sales as the small collection of jams did.

In fact, those who encountered the small selection were about 10 times more eager to buy one.

From the customers who visited the small selection, thirty percent bought one compared with the big selection, where only three percent of the customers bought a jam.

An overabundance of choices can cause choice overload and discourage them from buying products.

To avoid this outcome, limit the number of options a potential buyer has. This is especially necessary if you are offering a variety of similar options.

You need to offer a sufficient number of choices so that customers can find what they need, but not so many they get overwhelmed and don't choose anything.

Decision fatigue even impacts fact-finding for your customer before they are ready to buy.  

So, limit the number of small decisions they have to make even browsing your website, so they don't give up prematurely.

This can be done by using recommendation engines, offering the option to filter and sort products, and also by suggesting similar products.

Help customers find the product that is right for them as quickly and easily as possible, or risk them leaving in frustration.

TL;DR:

• Offering a variety of available options isn't always a good thing, and it can have an unforeseen adverse effect on sales.
• Your best bet is to reduce their number and make them distinct from each other.
• Always test them to find a perfect balance.
• Customers also experience decision fatigue when they are expected to make multiple choices throughout their navigation to your website.
• Try to simplify their decision-making process by directing their attention to what they might need and by tailoring the items they see to their preferences.

3. Nobody is Great Off the Cuff

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