{"id":102521,"date":"2023-05-15T17:23:00","date_gmt":"2023-05-15T21:23:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=102521"},"modified":"2023-05-17T11:26:26","modified_gmt":"2023-05-17T15:26:26","slug":"zero-risk-bias","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/zero-risk-bias\/","title":{"rendered":"How Persuasive People Take Advantage of the Zero-Risk Bias"},"content":{"rendered":"\n<p>Why do people have a zero-risk bias? How can it be used to one&#8217;s advantage?<\/p>\n\n\n\n<p>Peter D. Andrei explains that effective communication takes psychology into account. When you understand how people&#8217;s minds work, you&#8217;re more likely to be able to persuade them. He discusses several <a href=\"https:\/\/www.shortform.com\/blog\/cognitive-heuristics\/\">cognitive biases<\/a>, including the zero-risk bias, in the context of rhetoric.<\/p>\n\n\n\n<p>Keep reading to learn how to take advantage of the zero-risk bias, even when the risk isn&#8217;t zero.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-zero-risk-bias\">Zero-Risk Bias<\/h2>\n\n\n\n<p>Andrei claims that <strong>people are irrationally biased toward ideas, products, or circumstances that carry no risk of failure or loss<\/strong>. This is called the zero-risk bias. We\u2019re extremely loss-averse creatures, and we\u2019ll often pay a hefty price to ensure we don\u2019t suffer the pain of losing something, whether it\u2019s our hard-earned money, our precious time, or our health and safety.<\/p>\n\n\n\n<p>(Shortform note: When calculating risk to make decisions, it may be helpful to differentiate between <em>risk<\/em> and <em>uncertainty<\/em>. The key difference is that risk is quantifiable (we can reasonably estimate the level of risk) while uncertainty is unknown. Experts point out that people often conflate risk and uncertainty, <a href=\"https:\/\/www.psychologytoday.com\/us\/blog\/hovercraft-full-eels\/202012\/risky-gamble-or-uncertain-future#:~:text=but%20if%20we%20don%E2%80%99t%20differentiate%20risk,allowing%20chance%20to%20play%20a%20larger\" target=\"_blank\" rel=\"noreferrer noopener\">which can lead to poor decision-making<\/a>. If you assume that the risk of an occurrence is largely unpredictable, you may fail to take reasonable actions to reduce the chance of it happening. Alternatively, if you try to reduce risk when there isn\u2019t any, you might be wasting time and effort.)<\/p>\n\n\n\n<p>If your proposal, idea, or product is already a risk-free option, you need only emphasize it: State that it\u2019s risk-free, show proof, then reiterate the absence of risk as often as possible. Of course, more likely than not, your idea or product will carry <em>some<\/em> risk of loss or failure. Here are some of Andrei\u2019s strategies that take advantage of the zero-risk bias even when risk is involved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-provide-certainty-elsewhere\">Provide Certainty Elsewhere<\/h3>\n\n\n\n<p><strong>If the idea you\u2019re proposing has any chance of failure, shift the audience\u2019s attention to a part of it that <em>doesn\u2019t <\/em>carry any risk<\/strong>. If you\u2019re trying to convince an investor to provide funding to your startup, there\u2019s always a chance that your business will fail and they\u2019ll lose their investment. Nothing you say will remove that risk. Instead, point to a zero-risk aspect of your startup, like the fact that you have a patent for the technology you\u2019re using, so there\u2019s no chance a competitor can copy your product. This will activate the zero-risk bias even if this isn\u2019t a risk the investor had in mind, and even though your plan still carries risk, they\u2019ll be much more inclined to invest in your startup.<\/p>\n\n\n\n<p>(Shortform note: On top of pointing out a zero-risk aspect of your proposal or idea, it may also help to mention the risks as little as possible and instead focus on the benefits. Studies show that when people think about a particular risk more, <a href=\"https:\/\/www.psychologytoday.com\/us\/blog\/ulterior-motives\/202110\/paying-attention-risk-makes-it-seem-more-severe#:~:text=that%20have%20to%20be%20weighed%20against%20the,some%20chance%20that%20you%20will%20get%20in\" target=\"_blank\" rel=\"noreferrer noopener\">they\u2019re more afraid of it<\/a> and are more likely to act on this fear. So even if your proposal carries a very small amount of risk, it may be better to ignore this risk entirely so that the audience doesn\u2019t think about it at all.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-provide-a-loss-mitigating-guarantee\">Provide a Loss-Mitigating Guarantee<\/h3>\n\n\n\n<p>In the business world, a loss-mitigating guarantee is as simple as offering a full refund for a defective product or underwhelming service. <strong>Since you can\u2019t guarantee with 100% certainty that your product or service will deliver value, provide a guarantee that the customer can at least get their money back<\/strong>. Because of zero-risk bias, the extra sales will more than make up for the money you\u2019ll lose by providing refunds.<\/p>\n\n\n\n<p>(Shortform note: Business experts write that, while guarantees are common for products, <a href=\"https:\/\/hbr.org\/1988\/07\/the-power-of-unconditional-service-guarantees#:~:text=a%20car%20tune-up%20or%20send%20an%20unsuccessful,guaranteed.%20Consider%20the%20guarantee\" target=\"_blank\" rel=\"noreferrer noopener\">they\u2019re more powerful for services<\/a>. This is because they provide perceived value to the customer while also ensuring excellent employee performance. When you offer a guarantee for a service such as plumbing, for example, customers will be willing to spend more because they know their issue will be fixed or they\u2019ll get their money back. Employees will also ensure the job is done properly, as a mistake will cost the company money. Further, employees will be more focused on the <em>customers<\/em>\u2019 definition of good service, which will also improve performance.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why do people have a zero-risk bias? How can it be used to one&#8217;s advantage? Peter D. Andrei explains that effective communication takes psychology into account. When you understand how people&#8217;s minds work, you&#8217;re more likely to be able to persuade them. He discusses several cognitive biases, including the zero-risk bias, in the context of rhetoric. Keep reading to learn how to take advantage of the zero-risk bias, even when the risk isn&#8217;t zero.<\/p>\n","protected":false},"author":9,"featured_media":80230,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34,9],"tags":[1026],"class_list":["post-102521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-communication","category-psychology","tag-how-highly-effective-people-speak","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Persuasive People Take Advantage of the Zero-Risk Bias - Shortform Books<\/title>\n<meta name=\"description\" content=\"Effective communication takes psychology into account. 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