Savant Recruitment Logo
CONTACT US  |  020 7633 2266  |          
 
 
 

UX and Principle of Loss Aversion

Posted by Laura Bradsell on 21/11/2022

Back

Based on the principle of loss aversion, decision making by most people is focused on minimising loss over maximising gains. This could be an important aspect for designers to consider when designing a given product. Users decide on their actions based on existing knowledge and past experiences, creating a cause-and-effect connection. All these factors direct and influence users towards certain behaviours and actions when performing tasks. 

Digital Habits 

Technology was designed and adapted into humans' everyday lifes for the very reason that it is convenient and accessible to the point where every action is now subconscious and a second nature to users. Hence introducing a new product which is unfamiliar to users could be a challenging task for designers and perhaps the best way to do so is through the use of the ‘Hook Model’. 

The Hook Model

This is a four stage model which influences the formation of habit within users for a new product. 

1. Trigger 

A user must have the motivation to react to a cue both internally and externally. A designer has less control over internal cues as it mainly depends on the user's decision. However external cues such as notifications, reminders, widgets and many other factors are important aspects which a designer must consider to motivate a user and spark their interests. 

2. Action

Given the success of a trigger a user will then interact with it, hence determining a rewarding action is important for the next step of the model. An action has to be seamless and effortless for a user to interact with a given trigger.  

3. Reward 

An instant gratification for users which turns the action into a goal, a motivation for users to repeat the action. An example of this would be social media where every like rewards users down the line with a tailored content algorithm, a greater reach given their engagement and improving their overall experience of the product itself. 

4. Investment 

The product must provide an incentive for the users such as a referral code or monetization opportunities which will encourage users to come back to the product and keep interacting with a given product.

The hook model influences a user to create a new habit in interacting with a new product. Given its success, based on the principle of loss aversion, the loss of usability, efficiency and connection to the product a user will be less likely to give up the use of the product as it would be a loss in their daily lives. Hence minimising loss and the decisions which entails it will have users continuing their interaction and use of the product.

Savant is informed by market research and has a specialised Digital Design team with extensive experience and expertise in UX/UI talent solutions. If you are looking to build or expand your Design function, we can support you with the best talent in the industry with experts and market leading onboarding advice and consultation. To find out more about how we can assist you, please reach out to us at technology@savantrecruitment.com.

 
 
 

Insights Home