“Well, we’re already 75% of the way through this project so we may as well see it through.”
“We already paid for it, so we might as well use it.”
“We just tried this once and it didn’t work, so we’re not about to try it again.”
Do any of those sound familiar? They’re all irrational decisions based on cognitive bias, which doesn’t necessarily mean they’re wrong. It just means the reasoning is flawed. I bring this up because I see it almost every week. I speak with businesses who are either in the middle of a failing project or have the scars from a recent failure. In many cases, those negative experiences prevent them from doing the right thing and it’s rooted in a very common cognitive bias called loss aversion.
Loss aversion could be stopping you from taking action to fully and effectively implement a complete inbound marketing program that will move your business forward.
The Sunk Costs Fallacy
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