Do you hate to fail? Or do you want to win?
Michael Phelps
Nick Saban
Larry Bird
Billy Beane ("Moneyball")
Larry Ellison
What do these names have in common, other than being leaders in their field? They hate losing. In fact, they hate losing more than they like winning. Don't believe there's a difference? There is. To many, coming in second place is the same as losing.
People are more motivated by the fear of losing than they are by the thought of winning. It's called loss aversion. Notable Psychologist and Economist Daniel Kahneman has spent much of his career researching the psychology of judgment and decision making. His research shows that humans are hard-wired to avoid losses, with just the idea of losing being enough to create a strong reaction. He calculated the loss-aversion ratio to be 1:2.5, meaning; we want to avoid losing nearly three times more than we want to win.
So, if you aren't talking about what failure looks like in your sales copy, you're missing a huge opportunity to motivate your customers and initiate action.
Don't get me wrong. I'm not talking doomsday kind of talk. We don't want to be spinning stories that cause irrational fear. But there is a consequence if a customer doesn't use your product or service. And that is, their problem won't go away and, in time, could get worse. And just as you need to paint a picture of success, you need to help people understand what failure looks like, too.
I have many clients who don't like to talk about failure in their sales materials because it feels negative. But it's critical to understand how powerful a motivator fear of failure can be. And the uncomfortable feeling customers get when talking about failure can significantly impact a change to their behavior. Which ultimately results in eliminating their problem and increasing your sales.
By using your product or service, you're helping your customers avoid failure. And they want that more than they want success. You don't want to create so much fear that they’re paralyzed. But just enough concern that they are prompted to take action. And if you can sprinkle in a dose of humor, all the better.
One of the most successful ad campaigns that highlight what can happen if customers don't use a product or service is the Allstate Mayhem campaign. The scenarios are so over-the-top that they’re funny. Nonetheless, it serves as a reminder of what could happen if we don't have the proper insurance coverage.
Does your sales story balance visions of success with reminders of what can happen if customers don’t buy from you? Schedule a consultation to discuss your business, specifically.
