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NeuroTactic Overview

Risk Aversion

We avoid uncertainty when an outcome is potentially painful or threatening

SUMMARY:

We avoid uncertainty in all areas of life, and we’re willing to pay a premium to avoid it. Your customers stick to what they know and, when asked to venture outside their past experience, they will avoid it or seek ways of reducing the risk of the venture.

Over the course of selling your products or services, your customers will inevitably reach the point where they feel they are venturing into the unknown. This feeling could be caused by past experience (such as being burned by a similar company in the past), parting with money, or something else entirely.

It’s critical to address this feeling by providing risk-averting features of your product or marketing campaign. Examples of such features are money-back guarantees, customer support areas, live chat, and bonus-stacking. A well-formed guarantee, however, is the most powerful risk-reversal feature you can include in your marketing, so be sure to include one if at all possible.

Primary Source:

Barsky et al. (1997). Preference parameters and behavioral heterogeneity. Quarterly Journal of Economics.

Dream Category:

Routing

The DREAM framework, created by Vivid Labs, represents a research-backed framework for effective marketing messages. It stands for Desire, Routing, Emotion, Attention, and Memorability.

AIDA Category:

Interest
AIDA is a well-known framework for assembling a marketing message. It stands for the four steps of human decision-making: Attention, Interest, Decision, and Action.

Get The Book:

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