Refers to the tendency to prefer to avoid a loss rather than gain something. This causes people to act out of the motivation to avoid a loss rather than the attraction of earning a profit.
Loss aversion is the strong tendency to prioritize not losing over gaining. This tendency is understood as a resistance to loss due to the high emotional impact that losing can generate, this generates an emotional activation much greater than that caused by a possible gain (specifically around twice or twice and a Half more).
This concept is used both in economics and psychology, and in your sales you can use it to make your prospects aware of the importance of your product/service to avoid losses.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.