Loss aversionLoss aversion is one of the strongest emotional triggers. People would much rather avoid a loss than enjoy an equivalent gain. Or to put it bluntly, it’s better to avoid a $5 charge than to get a $5 discount. A simple change in how you frame an offer or situation can have a huge impact on consumer decision-making. Instead of highlighting to your customers what they would gain by buying your product, focus on escalating the loss they’ll suffer if they don’t. Another interesting twist that is a result of people’s tendency to avoid losses is our inability to easily let go of something that we already have, which, in turn, increases its value even further. If you can make your prospects feel as if they already own your product, they will be more likely to buy it, because not buying it will mean losing it. Here are a few ideas how you can implement loss aversion in your marketing messages:
- Encourage people to imagine what it would be like to have or use your product by peppering your page copy with words like imagine, visualize, and imagine.
- Frame your copy to emphasize losses rather than benefits; e.g., “You will lose $75 a month in surcharge fees if you don’t switch to our Pro account.”
- Let your prospects user your product for free for a limited period of time to increase the sense of loss.
- Use video content to demonstrate how your product works – watching somebody else use your product will make prospects feel as if they’re the ones doing it.