Sunday, January 7, 2018

How Copywriters Leverage the "Endowment Effect"

A study by Nobel Prize-winning psychologist Daniel Kahneman shows we overvalue the things we own—an emotional bias he calls the "endowment effect." 
Propelling the effect is our a fear of losing those things.

Copywriters put the endowment effect to work all the time, helping prospects vicariously experience owning a product or using a service:
  • The writer for e-com platform provider Shopify helps prospects imagine owning an online store: "With instant access to hundreds of the best looking themes and complete control over the look and feel, you finally have a gorgeous store of your own that reflects the personality of your business."

  • The writer for event producer Age Management Medicine Group helps prospects imagine participating in a conference: "After attending this in-depth, four-day conference, you’ll walk away with what you need to add this 21st century medical specialty to your existing practice."

  • The writer for CRM provider Salesforce helps prospects imagine licensing a mobile sales platform: "Welcome to a new world, and a better way to sell. Where field sales sells only on mobile devices. It’s sales managers knowing which deals will close. And when. A world where lead and contact information is always fresh and complete. And everyone performs like an 'A' player."
Thanks to the endowment effect, ownership―even when vicarious―makes it hard for prospects to let go of your offer.
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