Loss Aversion
Losing something hurts about twice as much as gaining the same thing feels good.
What it is
People will work harder, pay more and act faster to avoid a loss than to secure an equivalent gain. Trials that expire, features that will be removed and discounts that end all draw on it. So does the plain fear of missing out. It is the most powerful lever in this directory and the easiest to abuse.
The research
Prospect theory showed that the psychological value of losses is steeper than that of gains, with losses weighted roughly twice as heavily.
Kahneman and Tversky, 1979
How to use it
Frame the trial as something owned
"Your Pro features expire in 3 days" outperforms "Upgrade to Pro" because the user now has something to lose.
Quantify the leak
For a services business, show the revenue lost to missed calls or slow follow-up before you show the price of fixing it.
Guarantee against the loss
A money-back guarantee removes the loss people fear most, which is paying for something that does not work.
Related
Sources that shaped this entry: Digital Psychology, growth.design, Kolenda.io.