Loss aversion is becoming a novel view that people are uneasy about losing what they already “have” is twice as much fun as they get from getting new things.
Generally speaking, at the end of the product trial period, consumers are used to the solution and apply it to their daily lives. Therefore, they prefer to pay at the end of the free trial period to prevent the loss of a comfortable product experience. Loss aversion begins when consumers and buyers feel they missed something, or lost what they already have.
In addition, consumers are worried about losing their property and are more keen on spending money to create a safety net.
Loss aversion has been rooted in social structures, just like other key drivers related to purchasing decisions, B2B marketing PR people will use the following means to strengthen marketing strategies.
provides free trial opportunities
Free trials and demonstrations can automatically reduce consumer decision-making risks, while also using loss aversion to trigger potential customers.
The conversion rate of opting out of the free trial is higher, accounting for about 60% of the respondents, while the conversion rate of opting into the free trial is 25% - if the user wants to continue to receive the service, he only needs an email to register and enter the billing information before the free trial ends. Both options can trigger loss aversion. There is no risk of loss when registering the free trial version of
, but as the trial is approaching, users who enjoy the free trial will make a purchase decision - email or text message activity prompts to opt-in user registration, or reminds opt-out, the service will continue. Generally speaking, there are few people who opt-out, which is the key to triggering the purchase decision.
Remind buyers what is stakeholder
Just like consumers need to know what value the brand brings them, they need to know what stakes are there for them - have they missed something? Could you lose money?
The great way to bring interest to customers using personalized data is to show customers reports on how much time, money or resources they will save using a product or service.
If they are already using the service (free trial or other method), please use the common language:
"We provide unlimited storage space, exclusive offers and customizable metrics. Are you sure you want to cancel?"
or use a personalized language: "You have 210GB of storage information, and your productivity increased by 5% last month, and you have access to high-quality video content. Are you sure you want to cancel?"
and so on, which will strongly arouse loss aversion.
provides clear incentives
limited-time offers and personalized value-added incentives, which will show B2B buyers the opportunity you will miss if you don’t convert. During the 60-day free trial period, various operational data need to be collected and users are reminded at all times that if they do not subscribe, they will lose this data.
If there are special means to help potential customers save money or give them exclusive resources, use these incentives to promote a sense of urgency.
uses "loss recommendation" and "benefit recommendation"
"loss recommendation" focuses on emphasizing what users may lose, not what they can get.
Take SaaS company as an example, reasonable loss recommendation and advantages are as follows:
Loss recommendation
Don’t delay major decisions because of insufficient data.
Don't miss other meetings or deadlines.
Don't waste time on easy and automated tasks.
Advantages Recommendation
Get indicators for continuous updates.
simplifies work and schedule.
frees up time to process other projects.
provides tiered pricing and customizable solutions
cost is one of the most important drivers of decision-making, especially in the highly competitive B2B market. Rather than trying to sell executive plans immediately, it’s better to sell potential customers things that might be more affordable.
provides tiered pricing and customizable solutions to enable potential customers to understand exactly how to solve their respective problems, and they can choose to start with one or two services before scaling.
Using top-down strategies can also help consumers view more affordable choices as “saving money”, once again associated with loss aversion. Importantly, perceptions of value are closely related to universally recognized “norms”. If the buyer thinks the budget is $5,000, selling standard solutions to them for $4,500 will help them feel that they avoid the loss of adopting standard prices.
Once they have standard products, sellers are recommended to use email marketing, paid advertising and have B2B social media marketing strategies to help buyers “see what they missed” and upgrade to $5,000 based on trust and loyalty.
creates a sense of exclusivity
Although some strategies have involved creating a sense of urgency, such as loss sales, it is also suitable for creating a sense of exclusivity.
Create a membership with specific benefits, discounts, pre-sale opportunities, etc., which can make customers feel that if they don’t join, they will miss a good opportunity. This is a simple way to provide brand fans with more targeted marketing.
is appropriate and stops
loss aversion As a strategy, it can improve conversion rate, but if you rely too much, the brand will lose credibility.
1 As an example, consumers received an email from a clothing supermarket: "Last chance! 40% discount! "I received an email in three days, providing "30% discount on selected styles", and so on, constantly stirring up emotions.
When a brand continues to promote loss aversion, excessive discounts and oversold, it is a huge discount to all kinds of buyers.
B2B buyers are not looking for the cheapest option (although wanting to stay within budget), but rather the best and safest option – anything or measure that can prevent blame for a bad investment.
