Practical Sales Training™ > How to connect with your buyer > The Traffic Light Effect
What is it?
The Traffic Light Effect is all abut using traffic light colours to communicate the availability/condition of your offering.
Why does it work?
It works because of semiotics. We use images to interpret meaning, and it’s widely understood and accepted that Red means stop, Amber means prepare to stop and Green means go. These concepts can then be applied to the stock level or condition of your offering to quickly and simply communicate with buyers / clients.
How can you use it?
If you have to communicate the availability of a resource or condition of something, then consider implementing a simple traffic light system to do so. Whilst Red, Green and Amber are recognised for what they represent, you may also choose to clarify their meaning if it’s relevant to your offering. For example Amber might mean 10-50 units in stock, whereas Red might mean less than 5 units in stock. Depending on the complexity of your offering, you may also wish to use a colour coding system or product codes too.
Example Scenario: Hotel Room Availability System
A hotel booking website might use a traffic light colour system to show room availability:
-
Green: Plenty of rooms available – book now with peace of mind
-
Amber: Limited rooms left – book soon to avoid missing out
-
Red: Fully booked – join the waitlist or choose different dates
Why this works:
The colours instantly signal urgency or opportunity without needing to read fine print. Users understand at a glance what action they should take.
Other examples:
-
A warehouse could mark inventory status with green/amber/red to help buyers or staff
-
A training provider could show how many spots are left on a course
-
A subscription box service could indicate if next month’s box is still available
The key is instant visual clarity that encourages the buyer to act appropriately based on the colour cue.
See also
Like this kind of stuff? Want more?
Then Practical Sales Training™ is for you…
Action focussed, affordable sales training
for entrepreneurs and small business owners.
Brought to you by James Newell