When it comes to marketing, the principle of loss aversion is a powerful tool available to brands to increase customer engagement and encourage conversions. As Robert Collier signals to us in The Robert Collier Letter Book, first published in 1931: There are only two reasons why your reader will do as you tell him to in your letter. The sec-ond part of this article reviews evidence in support of loss aversion. Scared by the possible losses, the second group indicated higher positive attitudes and behaviors related to the exams. Live Better.” We can expect their site to be structured to convey this message. If your goal is to inspire the fear of losing money, just tell your visitors they could be spending more to buy the same item or service. Un ejemplo clásico del efecto señuelo es utilizar un producto “cebo” con propiedades dominantes para que los clientes que estén valorando otros dos productos se decanten por uno de ellos. 6 Top eCommerce KPIs You Should Monitor For Better Conversions. For example, when making investment decisions we most often focus on the risks associated with the investment rather than the potential gains. They play with customers’ loss aversion specially when they offer discounts or free benefits. To better understand this correlation, let’s talk over a cup of coffee. If loss aversion showed up for this decision, buyers would have set much lower prices in comparison to choosers. For a riskless situation, an experiment gathered three groups of people: sellers, buyers, and choosers of coffee mugs; as Nathan Novemsky, from Yale University, and Daniel Kahneman, from Princeton University, reminds us. The meal is already reserved! The first is that you have made him want something so badly that of his own volition he reaches out for your order card to get it. Early access creates an ownership people want to preserve. Once his books were pirated and distributed for free around the world, he experienced an astounding growth in sales. Groupon, for instance, employs many loss aversion strategies. Su estudio empírico de 1990 confirma la hipótesis de la aversión a la pérdida de Kahneman y Tversky. The monkeys were considering taking the risky action when comparing the choice to the immediate option. To cope with overflowing choices and prevent decision fatigue, we have ancestral mechanisms to help us reach faster decisions, based on our previous knowledge and interpretations of the world that surround us. Este sesgo cognitivo, llamado aversión a la pérdida (en inglés loss aversion ), forma parte de los grandes conocimientos psicológicos de la denominada economía conductual . La definición de la aversión a la pérdida deja patente una cosa: este sesgo cognitivo influye tremendamente sobre el marketing y las disciplinas colindantes. So frame your marketing messages to introduce/highlight imminent loss. This was a safe loss. Otro ejemplo muy conocido de aversión a la pérdida es el efecto dotación, estrechamente relacionado, que explica que atribuyamos más valor a las cosas que poseemos. On food alone, we overlook, on average, 200 decisions a day. So, on cart page, when a new discount is introduced, in a banner, for opening up an account, it comes in the same orange color, with the same wording as “save.” The banner also offers a little calculation, so the buyer can see the savings of opening an account. Order your meal in [timer] and we will deliver it to you by [delivery time]! The loss-aversion principle is never well enough understood or used in marketing. In one of the scenarios, the monkeys could choose between surely receiving one grape for one token, plus a bonus grape, or betting to receive three grapes, two as bonus, with the risk of getting just one grape (no bonus). It’s no surprise that consumers are beginning to look at these trigger words as noise. They repeat the offer three times, in three different formats. Remember to always A/B test your findings and hypothesis. In this gain perspective, monkeys always opted for the safe bet, the guy offering one grape plus one bonus every time. Indeed, they have, and marketers could see them before scientists named them. La realidad es bien distinta: cada vez que seleccionamos datos, nos vemos influidos por el sesgo de selección. This is old, classic incentive. Integrate smaller losses with larger gains. Usar este sesgo cognitivo en el marketing es acertado e importante, siempre y cuando no se abuse de él, ya que cuanto más tiempo se somete a un cliente a la escasez y la presión de tiempo, más insensible se vuelve a ellas. For loss aversion, the message implies that the meal already belongs to the visitor. The customer needs to act fast to complete the purchase and not miss the opportunity of acquiring a product at a low price. You can implement them in your ads to increase your CTR, subtly use them in a loss-aversion … Those who chose money over mug evaluated $3.12 as a fair amount to receive. Human beings are far more loss-fearing than we are attuned to gain. However, in this case, choosers’ evaluation of $3.12 almost matches buyers’ predisposition to pay $2.87. You’re giving them the concept of a coupon or a discount for a limited period of time and threatening to take it away. The answer is in how you frame your offers. The not-so-hidden secret to employ this technique? They say, “Use them a week, and if you don’t want it, send them back.” Most people don’t. Selling a stock that has gone up slightly in price just to realize a gain of any amount, when your analysis indicates that the stock should be held longer for a much larger profit 4. What about the choosers? In risky situations, loss aversion certainly comes in. La aversión a la pérdida es un concepto tan amplio y trae consigo tantos aspectos que se peca de su uso en exceso. Instead of framing a special offer as a present you are giving to your customers, frame this as … This means that you need to stop telling your prospects how amazing their lives would be … & Kahneman, D. (1991). You will find in this article three leading experiments on loss aversion. Jeff Goins, for instance, has a pre-order bonus for his new book. By the end of the time frame, customers will lose all benefits, as those countdown clocks alarmingly indicate on landing pages. They framed their referral program as “Get more space:”. Loss aversion is used a lot in the world of marketing as people will make an irrational decision to avoid the loss. Loss aversion refers to the tendency of people to strongly prefer avoiding losses to acquiring gains. Loss Aversion in Riskless Choice: A Reference Dependent Model. Goins has already used this strategy for selling his previous book, “The Art of Work,” which he sold 14000 copies in pre-orders. Loss aversion refers to our tendency to strongly prefer avoiding losses over acquiring gains. Robert Collier. A bird in the hand is worth two in the bush, old wisdom has taught us. Loss aversion is a marketing superpower. And that creates loss aversion. Orbitz uses repetition as well to reinforce the losses. La aversión a la pérdida define el efecto psicológico y económico de tender a dar más valor a una pérdida que a una ganancia. The illusion of loss. The riskier the context, the harder loss aversion plays upon our decision-making. Urgency plays a crucial role in inciting loss aversion, as it sets the time frame for customers’ action. For instance, if we had to decide between gaining 10 dollars or avoid losing 10 dollars, we would avoid losing the money we already have. For social proof, which doubles as scarcity in their website, they indicate how many people have bought the item, by also warning “limited quantity available.”. A word of caution: Don’t make your customers nervous by focussing only on what they’re about to lose. Not to mention choosing a career. by email: Is Copying A/B tests Good, Bad, Or Anywhere In Between? Loss Aversion in Marketing and Business: For those of you who are regular readers of this blog, you’ll know that one of our most popular and most visited topics is that of consumer psychology and how we can utilise this in marketing – for good, not for evil! Desde la perspectiva de la persona con capacidad de decisión, en la balanza, las pérdidas pesan aproximadamente el doble de lo que pesan las ganancias de una misma magnitud. The messaging tested by Jankus was meant to trigger different cognitive biases on visitors of a food delivery platform: You can see the messages above frame decisions in different perspectives. or,receive weekly updates For the first group, the content emphasized the gains of performing self-exams, while the second group received a negatively-framed brochure, highlighting the losses of not performing the self-exams. Loss aversion accounts for negative changes having a higher psychological impact than positive changes. For example: Stop losing $75 a month on X—buy Y instead. Because of this we find ways to avoid accepting the loss. A su vez, el efecto dotación confirma la existencia del principio de la aversión a la pérdida. How do TheKrazyCouponLady.com and Coupons.com, for instance, advertise the deals? By receiving a free product or sample service, prospects become owners. Emails are, after all, the preferred means for receiving brand promotions: Evy’s tree has a fantastic example of using the VIP list to introduce their new hoodies: A new hoodie inspired by a real woman is named, created, and topped with a story about why that woman is an inspiration, Evy’s Tree doesn’t immediately offer the hoodie for sale. And we are not alone. Este sesgo cognitivo, llamado aversión a la pérdida (en inglés loss aversion), forma parte de los grandes conocimientos psicológicos de la denominada economía conductual. (in press). They could not evaluate the general picture of receiving two grapes for one token, which was a gain already, when compared to the initial stage of one token buying one grape. Journal of the experimental analysis of behavior, 89, 145-155; Tversky, A. We adopt a less logical route when evaluating our choices. Focus on evaluating the location and copy on your website that addresses the loss aversion strategies. Among the incentives these programs bring to participants, discounts and mutual partnership on marketing efforts are features the ambassadors would want to keep. Loss aversion refers to our tendency to strongly prefer avoiding losses over acquiring gains. Instead, it launches a sneak peek three days prior to the release. Sephora.com offers free samples the customers can choose to add to the basket, before checking out. Durante la fase de prueba o utilización del producto, la empresa ofrece una función adicional valiosa y útil para los clientes. VIP email lists bring together people who are already customers, who trust the brand, and are willing to spend money on your products and services. Loss aversion, the principle that losses loom larger than gains, is among the most widely accepted ideas in the social sciences. Telling one… Probablemente hayas sucumbido al sesgo de supervivencia. La palabra clave en este contexto es la “irracionalidad”: durante mucho tiempo, reinó entre los economistas la idea de que el ser humano pensante económico (el llamado homo oeconomicus) actúa de forma racional y maximizando su utilidad. As you’ll learn from the studies and experiments summarized below, we’re more willing to take risks an… Loss Aversion Strategies in Marketing. Loss Aversion in Marketing. The principle is prominent in the domain of economics.What distinguishes loss aversion from risk aversion is that the utility of a monetary payoff depends on what was previously experienced or was expected to happen. Buyers didn’t think they were losing money if they spent $2.87. They keep the interface and layout consistent though the shopping experience. The Solo hace falta echar un vistazo a los típicos reclamos publicitarios: Tal escasez de tiempo o productos, llamadas apremiantes a la acción y cuentas atrás o plazos son algunos de los principios efectivos del marketing que se asocian con la aversión a la pérdida. It’s even been found that the pain we feel from loss is about twice as powerfulas the pleasure of gaining. For saving money, free trials and samples loom large as customers’ favorites. Por ello, el efecto dotación puede emplearse en marketing de manera aislada o en combinación con la aversión a la pérdida. In our everyday lives, loss aversion is especially common when individuals deal with financial decisions and marketing. No one wanted to sell their mugs for less than $7.12, while the buyers evaluated the mugs and established $2.87 as the maximum they would pay for acquiring them. This time, for “Real Artists Don’t Starve,” Goins is using a dedicated landing page, with clear directions, and a form to capture emails, to send the bonuses. La aversión a la pérdida se caracteriza por la predisposición a dar más valor a una pérdida que a una ganancia. This behavior is at work when we make choices that include both the possibility of a loss or gain. Buyers saw the mug as a gain, so they attributed a lower value to it, as they were cautious in not losing money either. You can see how different this program is from the rewards program we mentioned above. Just like most other marketing tactics, they can either work extremely well or blow up in your face. The choosers didn’t overprice nor under-price the product because there was no risk involved, they would gain something either way, be it money or mug. In the product page, you can see the “Save $50” in a contrasting color, that matches the CTA button. The following are marketing methods that use loss aversion: discounts, coupons and rewards; free trials and product samples Te contamos en qué consiste este sesgo cognitivo y cómo puedes tenerlo en cuenta para conseguir mejores resultados. Loss aversion is the psychological principle that says the pain we feel from losing something is far greater than the positive emotions we feel from gaining it. As core as these biases are, they must have been shaping our decisions for a long time. As the disease is scary enough, and the content on both brochures was similar, a rational reaction would be a high increase in self-exams in both groups of patients. This is the reason that people don’t take risks of any kind without a very real threat behind failure to do so. Loss aversion isn’t limited to hypothetical situations posed to doctors. Different from the sellers, this group would not receive a mug and then exchange it for money, they would either get a mug or money. Inspiring the fear of losing: a powerful technique since the 1930s. When you want to inspire fear, be definite! En la práctica, combinar la aversión a la pérdida con el efecto arrastre es altamente eficaz: mediante el ejemplo positivo del cliente ya convencido, se “mitiga” la presión de compra a nivel psicológico. Of course, you’re not really giving them anything at all. Amazon, for instance, displays a small countdown clock for deals of the day: Scarcity is also a fundamental feature for framing loss aversion. Más de 700 nuevas terminaciones de dominio, Dominio con privacidad WHOIS incluido gratis, Crea fácilmente la página web de tu negocio, Múltiples diseños y gran variedad de plantillas, Crea tu propia tienda online rápidamente, La elección ideal para Apache, PHP y MySQL, Hosting dedicado en España: Windows o Linux, Cloud IaaS altamente escalable y configurable de manera individual, Análisis del rendimiento de tu página web, Comprueba gratis si tu sitio web está optimizada, Comprobar la autenticidad de un correo de IONOS. How would they put a price on the mug? They didn’t see the mug as something they already owned. With the change in offers the monkeys had to make decisions between safe and risky bets. If you go to pretty much any web store or online business, you’ll see call-to-actions that tap your “loss aversion” neurons and make you feel like you’ll lose something if you don’t sign up for a deal or buy something immediately. 100percentpure.com has a rewards program called Purist Perks. By collecting points, customers have a new currency to exchange for products and services, so they can save their money. Presentamos los 7 tipos de páginas web más importantes... Usa nuestra visión de conjunto para hacer una estimación realista de los costes de tu web... Descubre los pasos indispensables que hay que seguir para conseguir una reputación como bloguero... Descubre 5 pasos para vender con éxito tus productos en Internet... Desde el SEM hasta el display marketing o el móvil, te mostramos los métodos más importantes... Introduce el dominio que deseas en la barra de búsqueda para comprobar su disponibilidad. And as Uncle Ben told Spiderman: With great power, comes great responsibility. You can check the introduction of the “Diana” wrap, the announcement of the email, and the giveaway for the product launch. The faster you order – the faster you get! Una de estas perspectivas sesgadas es la llamada aversión a la pérdida, que nos complica innecesariamente la gestión de ganancias y pérdidas. Estos son los métodos de marketing que se benefician de la aversión a la pérdida: También es fundamental la formulación y las palabras que se utilizan: “Ahorra 100 euros ahora mismo” es, por ejemplo, una formulación más elegante que “Obtén 100 euros más de ganancias gracias a este producto”. These gains are announced as nouns, opposed to the stronger command “save.”  In this sense, the 2-day shipping comes as a benefit vs. the action the customer can take that will prevent him from losing money. Their value proposition and tag line state “We save people money, so they can live better,” and “Save Money. At a first moment, our happiness for a 10-dollar win should have the same intensity of our sorrow for a 10-dollar loss. For example, if we have wealth of £100,000 but lose 20% – we will be very unhappy. They specify the offers, as “save up to 45%” and “save 10 dollars.” There is a timeframe for acquiring the deals, so, again, from the buyers’ perspective, it is better to make the purchase soon, from this site, instead of buying somewhere else for a higher price. Kahnemann y Tversky explicaron este temor a perder: las personas no valoran una inversión (por ejemplo, una casa, acciones o un producto) de acuerdo con el resultado final, sino más bien en relación con un llamado punto de referencia, que es, por lo general, el momento de la compra. With specific offers, and clear deadlines, coupons frame the benefits in terms of loss. ), it is time to optimize them. Segregate small gains from larger losses. You can see they use the repetition for words as “rewards,” “perks,” and “benefits.” They clearly point out that you can “cash points for benefits.”. En combinación con el conocimiento de otros fenómenos, como el efecto ancla, el efecto halo o el efecto IKEA, se puede maximizar con relativa facilidad el éxito de algunas campañas de marketing a largo plazo. So, the central question is: can you help your customers in making decisions that will keep the bird/dollars in their hands, by minimizing their losses? As one of our automated responses in behavioral economics, loss aversion facilitates decision-making, by leading us to avoid losses at all costs. Por lo tanto, jugar con la aversión a la pérdida de los clientes es una táctica útil en un momento puntual, pero no es una estrategia sofisticada a largo plazo. The trick to loss aversion is knowing when to use it and when to stop. Te explicamos qué es exactamente el sesgo de confirmación y te presentamos ejemplos de cómo aplicarlo con fines de marketing. Put simply, we’re more upset to lose $10 than we are happy to find $10. Camerer estudió la competencia que había entre los taxistas en la jungla de cemento que es la ciudad de Nueva York, analizando la inestabilidad de sus ingresos y jornadas laborales. After creating and implementing some of these loss aversion strategies to your site (or all of them, if you are extremely bold! In fact, when employed correctly, loss aversion can inspire purchases and even create potential long-term brand commitment. Let’s start! Loss aversion is common in cognitive psychology, decision theory, and behavioral economics. Sin embargo, la duración de su efecto suele ser tan limitada como las propias medidas. Loss aversion refers to a highly profound cognitive distortion whose effects are omnipresent in marketing. ¿Quieres animar a tus clientes potenciales a comprar tus productos? The gain/loss scenarios also show the decision-making was based on the referent. In the loss scenario, the monkeys started out receiving three grapes for one token. Pre-order deals play upon loss aversion by offering discounts and bonuses, but also by providing early exclusive access to new items. An easy way to implement the key insight of loss aversion theory is in your digital marketing. Rationally, the monkeys should choose the safe guy, with the safe loss, but acting on loss aversion, and mirroring human decision-making, they always made the risky decision of trying to keep more grapes, losing to risk one more grape in the transaction. El sesgo de confirmación es un defecto cognitivo que no deja exento prácticamente a nadie y que puede ponerse al servicio de la adquisición de clientes. In this live session, we will take a chew on this bone of contention. An extreme example of successful free sampling comes from The Brazilian author Paulo Coelho. But we go through millions of tiny decisions as well. On another product page, you can check the consistency of the site. Explicación de la aversión a la pérdida con ejemplos, Otros efectos relevantes para el marketing, Sesgo de confirmación: cómo el marketing aprovecha este defecto, Sesgo de supervivencia en marketing: por qué no hay fórmulas universales, El efecto señuelo: definición, mecánica y ejemplos, Fases de prueba y muestras de producto gratuitas, Posibilidades de reserva de nuevos productos, Listas de correo exclusivas para determinados productos, Demostración social y “miedo a perderse algo”, Comunicación de prioridad y escasez (real o sugerida), Seguimiento de cesta de la compra y pedidos inconclusos, “Disponible hoy única y exclusivamente”, “No pierdas esta oportunidad: compra ahora”. If you have a suggestion to add, we would be thrilled to hear and add to our list! Buying a car or committing to a mortgage stand out as major, energy-draining decisions. With notifications for cart abandonment, you can reach out for your customers to recover items they were interested in buying. Below is a list of loss aversion examples that investors often fall into: 1. But, surprisingly, capuchin monkeys display the same cognitive bias for economic decisions, as scientists at the Comparative Cognition Laboratory at Yale University found out. He refers to the product that “you left in your cart,” meaning this belongs to the email recipient, it is just a matter of the person going back and retrieving the product, in order not to lose it. But they had to make decisions on how many grapes they would lose.