?? Mind Hacks: A simple trick to boost your sales

[This article was ?? by Roman Buri?, Senior Consultant @ Mindworx ??]

Hello there curious soul!

Blink twice if this sounds familiar. You are walking down the street and find 20 bucks. “Nice!” you think. And … that’s the word that best describes the feeling - nice.

But imagine a different scenario.??

You stand in front of a cashier, reaching into your pocket, ready to pay… when you find out you have lost 20 bucks.

The word that describes this situation is quite simply: “F*******k”.

Your disappointment is immeasurable and your day is ruined. Why is that?

As research shows, we feel the pain from losses about twice as much as we feel the joy of equivalent gains.?

This loss aversion stems from Prospect theory - a theory so impactful that it gained Daniel Kahneman the Nobel Prize in Economic Sciences. But more about that later ;)?

So, when your customers feel like a benefit or offer might slip away from them, they hate that feeling!

How to Use Loss Aversion in Your Communication

TIP #1 - Use free trials

Once customers have gotten used to having a service or product, it becomes much harder for them to give it up. It would feel like a loss to them.

TIP #2 - Create urgency

This doesn’t just mean limiting the offer. You also need to highlight what they will lose if they don’t take advantage of the offer. How much more money will they spend if they don’t act now?

TIP #3 - Reframe gains as losses

Emphasize that by not acting or by not choosing, the person is experiencing a loss.

This phenomenon is so powerful that it caused 150% more people to insulate their homes, just by changing the wording of an offer from:

“If you insulate your home fully, you’ll be able to save 50 cents a day, every day.”

to: “If you fail to insulate your home fully, you’ll lose 50 cents a day.”

??What to take away

1. We hate losses about twice as much as we love equivalent gains.?
2. Make your customers feel like they already own the product. It will be much harder to let it go.?
3. Create urgency. Limit the offer and highlight what customers will lose if they don’t take advantage of it.

?? Mind Hacks Newsletter

Mind Hacks is a monthly newsletter written by smart folks at Mindworx Consulting. It is crafted for curious minds eager to delve into the fascinating fields of consumer psychology and behavioral economics. Our goal? To translate complex principles into practical insights you can relate to easily.

We are a team of business consultants with a shared passion – we believe in the power of behavioral economics and consumer psychology. Our results from dozens of completed projects for the largest companies in the banking, insurance, and telecom industries reinforce this belief.

Since 2015, we have been refining our approach to ensure that our clients get the best that behavioral economics and consumer psychology have to offer.