12 mrt Pitching: The secret is losing
It only takes a slight change in your formulation, but it will make your message 300% more convincing. Don’t sum up everything there’s to gain in accepting your proposal, tell your target group what they’ll miss out on if they don’t.
Why does this work?
The thought of losing affects people a lot more than the thought of winning does. That is why novice investors tend to sell their stocks much too early. They’re afraid of losing their investment!
Therefore stop saying things like: “We could save a 1.000 euros per day, doing this”. Reframe that sentence more persuasively by saying: “Every day we don’t follow this procedure, it actually costs us a 1.000 euros”.
The science of loss aversion
How do you make people pay attention to their energy consumption and take drastic measures? That’s what the scientist of the Californian University wanted to find out.
They represented themselves as representatives of an energy supplier. One research group was told that they can save 50 cents a day with the recommended measures. The other group was told that they’re throwing away 50 cents a day by not taking those measures.
Economically there’s no difference – at all. However the effect of stressing what people would miss out on had 300% more of an effect on people taking the efficiency upgrades.
How do you apply this
The application of loss aversion isn’t too difficult. The next time you write a pitch or a proposal, make sure to rephrase at least one significant gain to a loss. Make sure not to make empty statements like “you’ll miss the opportunity of a lifetime”, but bring a concise example: “300 potential clients walk out on you every single day”.