Do Free Trials Work? YouTube #shorts
6 Dec 2020 · 0 min
0:16
Brands offer free trials because loss aversion makes canceling hurt twice as much as signing up feels good. Once you're in, the pain of quitting keeps you paying.
Brands offer free trials because loss aversion makes canceling hurt twice as much as signing up feels good. Once you're in, the pain of quitting keeps you paying.
Why do brands constantly give out free trials? Studies have found that losses hurt twice as much as gains make us feel good. So losing $10 is more impactful than gaining $20. This is called loss aversion, and companies know once you've signed up for a trial, you're not likely to give it up.
