📉 Loss Aversion:
When you already have LOST something, Losing feels worse than gaining.
Netflix
It's easy to cancel
Duolingo
Easy to start
People are hardwired to avoid losses.
This is partly because the feeling of losing is 2x more powerful than that of winning.
Loss aversion in UX
In UX, this can manifest in many ways.
For example, after entering personal information into a form, the user may be nervous about clicking the 'back' button in their browser.
Their aversion to loss in this example, is losing the data they've entered, and therefore their progress.
✅ Conversion rates
People may be hesitant to make large commitments (i.e., signing up to an annual plan, if they're not sure that they'll get value from it).
✅ Anxiety
People may be anxious about using 'risky' actions (i.e., clicking on the 'back' button, after entering all their details into a form).
✅ Discomfort & frustration
If the discomfort of holding conflicting opinions is too great, the user may decide to not use your product at all.
✅ Happiness & enjoyment
Losing (anything) usually makes people unhappy.
Even the fear (possibility) of losing can have this effect (i.e., "it was stressful crossing that rickety bridge, I didn't enjoy that at all").
✅ Churn
Clarity on consequences
In an ideal world, the user would be absolutely clear on the consequences of any (and every) click.
For example, which of these two "purchase book" flows would you be more comfortable using?
The clarity in this instance has been improved in:
The CTA label (by being specific)
The context around the CTA
De-risk the action
You may be able to reassure the user that an action is actually not as risky as they perceive.
For example, before taking out a subscription, Netflix will remind you how easy it is to cancel
.i.e., mitigating not just the loss, but the perception of any possible loss.
Netflix will tell you right away how easy it is to cancel your subscription; "cancel at any time".
By promoting this so heavily, they're signalling to you that you have very little to lose.
You're encouraged to create playlists using your free account.
This is sticky, because once users have curated their favourite songs, they won't want to lose those playlists forever.
Spotify utilise loss aversion to decrease churn after their trial.
Duolingo will let you start learning a language (i.e., using their service), without having an account, or making any kind of commitment.
This demonstrates their value early, and lowers the perception that you could waste your time signing up, when the service is bad (which it isn't!).
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