Loss Aversion Awareness

PROBLEM: AT&T’s brand platform wouldn’t allow “negative” messaging. Simple problem/solution concepts, no matter how relevant, were tossed out. Predictably, the work was under-performing.

SOLUTION: We introduced the positive side of negative: “loss aversion” theory. Simply put, people are more motivated to avoid a loss than acquire a similar gain.

First, we applied the theory to contract renewal letters. Instead of telling customers to “continue saving”, we warned that they’d “lose their current savings”.

RESULT: 30% more responses and 70% greater profitability.

Next, I applied loss aversion to prospective clients at AT&T, sending empty chocolate boxes with a QR code to a video demonstrating our culture’s aversion to loss. The video was shot and edited in-house.

RESULT: Open doors within new business units at AT&T.