In a nutshell, loss aversion theory states that most people would rather avoid a loss than make a gain. Yet, many brands focus on the latter when marketing to their prospective customers.
Yes, some people do want to be healthier, richer, stronger, more attractive, etc. But is what you’re selling enough to motivate your prospects into buying?
That’s where the customers’ pain points come in. These are problems or issues that your customers face when interacting with a product, service or process, and they often drive people to make a change.
For example, if a customer is happy with their home internet provider, and a competitor offers them 10 percent faster download speeds for the same price, that customer probably won’t go through the hassle of changing providers. However, if that customer is dissatisfied with frequent spotty service, then they are more likely to make a switch.
Thus, think about how you can frame your offerings using loss aversion theory, which in turn should address pain points. Here are some samples:
- Ramp up production –> Cut idle time
- Drive more leads –> Avoid missed opportunities
- Increase efficiency –> Stop wasting money
- Make your job easier –> Get rid of the headaches in your job
- Provide employees more perks –> Decrease employee churn
- Improve training for new hires –> Reduce chances of a lawsuit