Loss Aversion

“Influencing the player behavior not through reward, but by avoiding punishment, varying punishments through status, access, power, loss of resources or being downgraded.

So you can use loss by saying, “Well, if you haven’t used the system, we’re actually going to start removing some of your privileges,” to actually make them come back and actually get using and be engaged with the system again, or come visit your website again. “To prevent losing points, you’ve got to log in once every 30 days,” or if you want to have them logging in more frequently, they’ve got to log in once every 14 days or once every 7 days to maintain a certain type of level. They might have to make a certain type of comment or a number of comments to keep a certain type of badge or authority within the community, because if a user stops being active, well, what can you start taking away from them or could you downgrade their membership if they haven’t actually been performing? This actually makes sure people keep performing and staying on the edge of their seats to keep it, because otherwise they lose it. Nobody likes to lose some status, some power, some authority they’ve been given because we’ll actually start to fight to get that back. So how are you actually seeing Loss Aversion being used in sales and marketing. We’ve also seen it in sales and special offers, but we’re actually seeing it overused and it’s losing its power in that way because aren’t having true loss sales. Like they do 50% off sales or buy one get one free every day of the week! Like look at the carpet stores, there’s a going out of business liquidation sale by the same business and they’ve been doing it for the last 10 years and they do it on every Friday. That just doesn’t make sense. How can you powerfully lose loss that doesn’t devalue your product or services? You can use it in a powerful way to actually bring more power and value and respect to your product and service and that’s what you really want to be designing and doing when you use Loss Aversion. ”