Marketing Risk Aversion
Psychology of Sales
“The biggest risk in business is taking none at all”– Ray Correa
What is Marketing Risk Aversion?
Marketing Risk Aversion is when someone has a bad experience or loses money they invested in marketing and as a result becomes risk-averse or apprehensive of trying new things even when the data suggest it would be wise. Try to eliminate the emotional aspect of the thought process and consider evaluating the facts or hypothesis. You will make fewer mistakes and increase the odds of successful decision-making.
Everyone has had a bad or lets say “learning experience”, invested hard-earned money in something that didn’t work and it resulted in a loss or what is thought to be a waste of time. Whether it be the wrong strategy, improper execution, bad timing, under-skilled marketers managing the campaign, limited amount of capital or disadvantageous market conditions.
All of these negative outcomes could deter someone from trying something new again or even worse you come across a compelling idea and agree with the data logically but then decide not to give it a shot because of a prior experience.
Marketing is an investment just like a stock and they all don’t work out immediately or go up in a straight line. Expect volatility and sometimes things don’t work as planned due to numerous reasons. It’s important to understand where you went wrong and recognize that you have to continue to take calculated risks with good ideas to isolate the ones that are profitable.
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