In this episode, I'm super excited to share some awesome insights from our latest episode, where we dived deep into the fascinating world of loss aversion and how it can be harnessed in marketing and copywriting.
Loss aversion is a psychological principle that suggests people are more motivated to avoid loss than to gain something. Think about it this way: losing $100 feels way worse than finding $100 feels good. This fear of loss can be a powerful motivator for people to take action. But here's the thing, we need to balance loss aversion with the potential for gain. We're not about fear mongering here, but rather framing offers in a way that highlights the potential benefits and the consequences of inaction.
In addition to loss aversion, we also discussed three other levers that can be used in marketing: the gain lever, the logic lever, and the fear lever. The gain lever focuses on what can be obtained from taking action, like having a healthier and happier pet. The logic lever explains why taking action is important, such as how regular dental care is crucial for a dog's overall health and longevity. And the fear lever highlights what will happen if action is not taken, like the potential for serious health issues due to neglecting a dog's dental health. Sprinkling a bit of status, like the prestige of owning a healthy pet, can also be effective.
So, my friend, loss aversion, when used ethically and strategically, can be a game-changer in your marketing efforts. By understanding and applying this principle, along with the three levers of marketing, you can improve response rates and create more effective offers. Remember, it's not about scaring people, but rather motivating action by highlighting the potential gains and logical reasons for taking action. Give it a try in your marketing strategies and see the difference it can make.
Brandon (00:00:00) - Welcome to the Veterinary Marketing podcast, where it's all about how to attract, engage and retain clients to your vendor hospital using digital marketing. My name is Brandon Breshears. Thank you so much for taking the time to listen. In today's episode, which is a quick in-between episode, we're going to be talking about one of the most important principles when it comes to framing offers, doing any kind of copywriting. It helps you to get better response. We're going to talk about it. It's a principle called loss aversion. Before we begin, just a couple things. First, if you haven't done so already, be sure to subscribe in iTunes, Spotify, wherever you listen to the podcast and be sure to subscribe. And if you could share this one episode or the podcast with somebody you think would benefit from it, I would be deeply grateful. I appreciate you for listening and I would love to have more of an impact in the veterinary industry. So if you're watching or listening, please share this with a colleague that you think could benefit.
Brandon (00:00:53) - All right. Let's jump into today's episode. So the principle that I want to talk about is called loss aversion. If I told you you could gain $100 or if I told you you're going to avoid losing $100, which one do you think is a better motivator? If you guessed losing $100, that is absolutely correct. There's been a ton of studies out there that show that people are far more interested in avoiding loss. And they're actually the pain of losing is far greater than the potential for gain. So if you're walking and you saw $100 bill on the floor and you found it, you'd be very, very excited. And that is a good thing. So that's when marketing. We have two elements that we can use. We have the carrot and the stick, right? So the carrot is the potential for gain and the stick is the avoidance of pain. People want to avoid pain and they want to move towards gain. So if you lost $100, though, the pain of losing that $100 would be almost double the pleasure of finding the $100.
Brandon (00:01:53) - So it's a very, very important principle to know that in marketing, if you can use fear of loss as a motivator for people to take action, you're going to get a far better response. Now, I'm not saying you need to be fear mongering or anything, but if you told somebody that they could potentially have their dog have a better quality of life if they did dental procedures, which is true, that is potential for gain. And so if you frame it in the way of if you don't do dental treatments, your dogs are going to lose all their teeth and they're going to be able to not eat at the end of their life comfortably, It's going to if you talk about that, that's going to be far more of a motivator for a greater motivator. So it's important to use both of those things in balance. Most people will only take action if they are or they'll take action much more quickly if they fear losing something. So think about that and you can use both of those in conjunction, right? So talk about fear of loss and then potential for gain.
Brandon (00:02:57) - And there's actually three levers that I like to use. So one is the gain lever, which here's what you could get the logic lever. Here's why that's important. And people like to rationalize their emotional decisions. And then the fear lever, if you don't do this, here's what's going to happen and how you're going to miss out. So use those three things in combination. And if you can have a little bit of a sprinkle of status on top of it, that's even better, right? It's not like you have to use only one of these things, but use all of those things in combination and you're going to get better response and better results. I hope this was helpful. Please be sure to subscribe on iTunes, Spotify, where you get your podcast from, and we'll see you on the next episode.