Digital psychologyDecision029

Sunk Cost Effect

The more people have already put in, the less willing they are to walk away.

What it is

Time, money and effort already spent should not affect a decision about the future, but they do. People finish courses they no longer want, keep subscriptions they no longer use and complete forms they regret starting because stopping would make the investment feel wasted.

The research

Theatre-goers who paid full price for a season ticket attended more performances than those given a discount, despite identical tickets, because they had more to justify.

Arkes and Blumer, 1985

How to use it

Get investment early

Imported data, a completed profile, a connected account. Each one raises the cost of leaving.

Show the investment at the exit

On a cancellation screen, remind people what they have built. Ethically, and only if it is true.

Related

Sources that shaped this entry: growth.design.

Let’s bring your idea to life

Tell me about your business and what you want digital marketing to do for it. I’ll come back with an honest view on whether I can help.

Or reach me directly at ben@compoundgrowth.au