Loss aversion is one marketing tactic which never grows old. This rides on the idea of consumers who are willing to keep certain things because they want to avoid the risk of needing it later. As such, you will notice words like limited time and last chance in marketing collaterals. There was a time when free and new were the most effective marketing buzz words.
Changing consumer behaviour
Because such words have been used so rampantly, buyers are beginning to see the difference. They are less triggered by such words as before. As long as something looks like an ad, current buyers are less likely to click on them.
Is loss aversion a thing of the past? The main idea of loss aversion is not to cheat the customers. It is to educate them. If you use your words right, this tactic could still work.
Use relevant information
One of the biggest mistakes marketers make in loss aversion tactics is by making ads that does not have any information. What you should do is to ensure that your customers are able to click-through your ad and get to where they want.
Having a good tag-line is great but what ensues after that is what matters. If your customers have made a shortlist of what they like in your online portal, you have to push them into making the final decision to buy. After all, you already have that data, what you need is to push it to them to complete the last mile.
Friendly alerts for convenience
Buying from you online is not an easy step. Whether it is a cheap or expensive item, buying online requires the customer to be in a safe place without having to reveal their banking or financial information.
When a customer have shortlisted an item, they might not buy it immediately. What you need to do here is to send a friendly alert to sort of remind them about the item. Never be too pushy and the message is meant to be helpful.
This is perhaps the oldest trick in the book. After all, you need to distinguish yourself from your competitors. Use special discount codes or promotional strategies to drive your customers to take immediate (or almost) action. When you give them a promotional code, the transaction has a higher chance of completion.
More than 80% of customers abandon a transaction right before checkout. If you can give them a code to key in at that point to enjoy immediate savings, it could be just what you need to get the home run.
Loss aversion can be very effective if you know where the pain points are. Customers would be more than happy to buy anything as long as they are not being inconvenienced. Even if they are buying products they don’t necessary need.