We’re almost done with the first stop of your Road to Dominion and let’s cap it off with loss aversion marketing. Using a bit of psychology in your titles, call to action, content structure and keywords will prevent your audience from getting bored with your content and stir emotions inside them. People don’t like the idea of losing something and it’s your job to make them feel this way: that not going with your products and services is a net loss for them.
Loss aversion is defined in psychology as “the tendency to not lose rather than gain”. Simply speaking, most people would prefer to not lose 20 dollars rather than a chance at 50 dollars. How do we apply this in marketing though? By using what is called loss language, we can build a sense of ownership with the audience. By tapping into ownership, we can make the audience go beyond your educational articles and get down to conversion, and eventually a sale.
Be Scarce. Put Your Product as a Rarity
We discussed methods of positioning yourself and talked about solving problems and answering pains. The thing is, you will not always be a 100% unique product, and that’s perfectly fine. However, positioning yourself as a cut above the rest and give them a deal they “won’t find anywhere else”, you’re rustling people to act or lose the opportunity. For example, rather than saying “Plenty of rooms to choose from!” with a hotel booking website, you might as well say “They’re going fast! Call now and book yours!”. The difference between the two is staggering. The first one is using gain language – telling the customers that they have a lot of choices and instilling a sense of ease. On the second statement, you still imply that the customers have options, but they should act now or risk losing their chance, drumming up the urgency to the max.
Bundle Things Together on a Limited Time Offer
Loss aversion plays on people’s need to save and if you can get people onto a timed sale or a promotional offer that combines two products on a reduced price, this urges the audience to buy now instead of later. This method is what infomercials use to make the audience act on impulse because they will get more for less.
A good example of this is the gaming industry, like Sony’s Playstation 4 bundling their gaming console with the latest games, controllers and peripherals for a complete gaming experience. When sold separately, these items sell for top dollar. The limited time bundle not only gets the game out of the shelf for the duration of its hype but also gets the players who do not have the console yet to buy their product to play their favorite game and be with the in crowd.
Sharing Data to Help Loss Analysis
Banking on the loss language in your content is all about creating talking points and what’s the better way to talk about loss aversion but with tangible data. Use data that supports the idea that without your product or service, the audience is missing out on many important things that may benefit them.
Most solar companies have a tendency to market their solar panels, solar batteries and installations by a pincer data move: showing cost reduction data for customers who may think solar is expensive initially and a carbon footprint reduction data for people who want to see that they’re helping the environment by going green energy. Not only does this appeal to a financial loss aversion but also talks up about an environmental loss aversion that, though may not be as important to many people, is a good side effect.
Loss aversion and, by extension, loss language is a powerful tool that not many utilize and they’re wrong for not doing so. They’re losing a legitimate weapon in their war for supremacy on the internet. It’s theirs to lose. Set yourself apart with this digital marketing strategy, or be added to the rest who never tried.