This video from a TED Talk by Laurie Santos is genius – it talks about one of the linchpins of high-pressure sales: Loss Aversion.
In a nutshell – “People’s intuitions about how much risk to take varies depending on where they started with.”
I really found it interesting to learn that loss aversion is relative to the starting point of the game. The game being the point at which you have to start deciding.
Yes, we all know people want to minimize loss, and we do know people want to minimize loss in disproportion (much more) to how much they want to achieve gains. What this presentation added was two things:
The knowledge that this drive cannot be easily overcome
The knowledge that the most effective strategy would be to give you something you have to spend – with the choices for spending being either safely lose a certain amount or in a risky no-loss/multiple-loss fashion.
This is exactly what happens to, among tons of cases Laurie mentions, homeowners whose homes have depreciated below the purchase value: They are most likely to take the no-loss gamble and hold on to the shack instead of the known loss and cut their losses short.
Can you use this knowledge in your daily marketing? Well, how much more explicit can this get?
Interesting thought: Do you make these same mistakes when running your Internet Marketing campaigns? Do you take unwarranted risks in attempts to prevent a loss?
I must not fear.
Fear is the mind-killer.
Fear is the little-death that brings total obliteration.
I will face my fear.
I will permit it to pass over me and through me.
And when it has gone past I will turn the inner eye to see its path.
Where the fear has gone there will be nothing.
Only I will remain. Bene Gesserit Litany Against Fear
Looking for a video marketing company I bumped into this children safety video billed as “creepy”… Well, its actually pretty damn good – and creepy enough to be remembered.
Now… Wanna see something scary? Really scary? How about Ronald McDonald telling kids that he is an exception to the child safety video above?
PS: If you’ve ever wanted to do something to a kid that their parents would object to, do everyone a favor and hang yourself with the nearest extension cord. Feel free to leave a note saying you read it on negbox.com – I could use the publicity.
This short animation with Phillip Zimbardo, professor Emeritus of Psychology at Stanford University, is mind-blowing. Redefines how you view so many things, it can’t help deepen your perspective of how you put out messages in marketing.
What are the time preferences of those who you target, and how do you communicate to them?
Having worked in corporate Sales, this video struck home when I saw it a couple of years ago. Its simply hilarious. Just got a memo from the Rat Maze Overlords saying something about not taking customers to “indecent entertainment” or some other euphemism… In other words: Folks, don’t take customers to nightclubs or brothels – depending on your location.
Meanwhile… Azoogle wants to take everyone to the PlayBoy Mansion for a “Job Well Done” or a “Well Done Blow Job”, I’m not sure yet – Jeremy sure has a big grin on his face in this picture.