How Loss Aversion Causes Sales Disruption

Why did Charlie get to inherit the chocolate factory? How was Noah able to save the world on an ark?

Why did Charlie get to inherit the chocolate factory?
How was Noah able to save the world on an ark?

Well, the answer is control. They controlled their mind from loss aversion. Charlie didn’t get overwhelmed by the factory and was alright with losing out on eating all the chocolates he could see, while Noah took the hard call of losing out on all the living beings on the planet to keep his arc floating.

To make things clear, loss aversion means that human minds are more interested in avoiding losses than gaining something equivalent. 

This happens a lot when you give shopping coupons to your customers. 
More than the discount at stores that drive consumers to buy, it’s the coupons that are given beforehand, that alert their minds that they might be losing out on a good deal.

But how on earth can this behaviour be killing your business?

Well, you, your sales teams, and your distribution partners, all face the same dilemma.
When the salesman visits the field, they are more focused on dumping stock at stores rather than ensuring that the current stocks are well-kept.

When your distribution partners buy products from you, they are more interested in getting stocks that sell fast, rather than buying what gives them the best profit.

Even you, while strategizing how to build the business, might feel the need to sell more every month is greater than the need to build a robust and 100% transparent distribution system that can stand strong for decades.

Don’t worry!
That’s never wrong. We’re just being human.

But to be the hero, you need to be more. Your business needs to be more.

So why not give your salesmen the power of the Smart Merchandising tool, so they can make swift checks on stocks at every shelf, without comprising the quality of their work or wasting the time spent on the field. Show your distribution partners the magic of technology, by telling them when to stock which products with tools like Auto-replenishment and Suggested Ordering

Help your team become heroes.

Come explore how leading consumer goods brands are winning distribution with retail intelligence. Tap on the link below or mail us at to get a free platform tour.

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