The Traffic Light Effect

Understand Your Buyer > How to Engage > 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.


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