#1071 Fear of Loss

In a study at Duke University, administrators asked first-year students to fill out a survey telling them that if they completed it and turned it in, Admin would enter them into a drawing for a cash prize.  The compliance rate was meager.  The survey team then tried a different tack.  They told the class that everyone was entered into a cash prize drawing.  But with this caveat: if your name was drawn and you had not submitted a completed survey, they would pull another name.  Compliance increased many-fold.

Why?  Because as a motivator, the promise of gain pales when compared to the fear of loss.

Which of these statements feels more likely to prompt you to take action?

“If you sign the contract today, we will include six months’ worth of supplies.”

OR

“Our free six months supplies included sale ends tomorrow.”

This is true in many aspects of life.  I am more likely to run into my burning home to rescue the $10,000 hidden under the mattress than I am to have saved the 10K, to begin with.

Remember that when appropriate, create offers with a loss-timer. 

I remember my mom was not much of a baker, but when the eggs were about to expire, she was transformed into Betty Crocker, frantically cranking out quiches.

Own your sales gene…