This is the best ad I've seen all month | Nudge Newsletter


Losses Feel Worse Than Gains

โ€‹Read onlineโ€‹


Kahneman proved that "๐˜ญ๐˜ฐ๐˜ด๐˜ด๐˜ฆ๐˜ด ๐˜ง๐˜ฆ๐˜ฆ๐˜ญ ๐˜ต๐˜ธ๐˜ช๐˜ค๐˜ฆ ๐˜ข๐˜ด ๐˜ฑ๐˜ข๐˜ช๐˜ฏ๐˜ง๐˜ถ๐˜ญ ๐˜ข๐˜ด ๐˜ฆ๐˜ฒ๐˜ถ๐˜ช๐˜ท๐˜ข๐˜ญ๐˜ฆ๐˜ฏ๐˜ต ๐˜จ๐˜ข๐˜ช๐˜ฏ๐˜ด".
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So, Nationwide don't say:
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โŒ "We've kept our Holloway store open. So you can keep banking in-person."
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They say:
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โœ… "Santander is leaving Holloway. Maybe it's time you left Santander."

It's the best ad I've seen in weeks because it concretely applies behavioural science.

Highlighting what a customer will lose is often more persuasiveยน than highlighting what they'll gain.

The original loss aversion study

In a study by Aronsonยฒ (1988), 404 homeowners received insulation information.

One group was told the potential gains of insulating (saving 75 cents/day), while another was warned of losses if uninsulated.

The loss frame led to a 56% improvement in sign-ups.

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Did you like this newsletter? Reply to let me know. โ€” Phillโ€‹

P.S. I'm working on something new. Take a peek here.

ยนBehavioural Business, Richard Chataway (2020)

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ยฒApplying Social Psychology to Desegregation and Energy Conservation (1988)

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As a behavioural science practitioner, I believe in the peak-end rule*

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I spend 18 hours each week turning marketing psychology into readable newsletters.

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