Understand Your Buyer > How to connect with your buyer > Loss Aversion
What is it?
Loss Aversion is the phenomena whereby we are more motivated by protecting against losses than seeking gains.
Why does it work?
If we place more weight behind protecting what we have, minimising issues and pain, then as sellers we can focus on these areas to better appeal to prospects.
How can you use it?
Tailoring your sales messaging towards protection, safety and continuity more so than gains and growth can help to close more sales and engage clients as you are connecting with their main drivers.
Hypothetical Example:
A cybersecurity company could frame its message like this:
-
“Don’t risk losing your client data – protect it with our secure backup system.”
This focuses on avoiding loss, which is more motivating for buyers than a message like:
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“Gain more storage space with our secure backup system.”
Similarly, an investment advisor might say:
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“Protect your retirement savings from market volatility,”
rather than, -
“Grow your retirement fund faster.”
By emphasizing protection, safety, and the prevention of pain, buyers are more likely to act because they want to avoid losing what they already have, which is psychologically more compelling than chasing potential gains.
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