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Powerful Persuasion Strategies
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The effort to save $100 is much greater than the effort to gain it. That’s because our emotional reaction to loss is twice as intense as our joy in gain.
Put into practice, a group of teachers were given $4,000 up front, but told they’d have to return the money if their students didn’t show academic improvement. Another group was promised $8,000 ? twice as much ? but only after student’s grades came in. The higher grades came from the teachers working not to lose their $4,000.
Savvy marketers always address what the customer stands to lose if they don’t purchase, not just what they gain. Productivity and goal-setting experts also use loss aversion, encouraging placing money on the line to increase motivation.
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