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Home
UX Glossary
Loss Aversion

🚦

Loss Aversion

A cognitive bias that describes why the pain of losing is psychologically twice as powerful as the pleasure of gaining.

Featured in 30 UX Bites

Similar psychology:

Hyperbolic Discounting
Fresh Start Effect
Confirmation Bias

Likely impacts:

Churn
Conversion Rates
Anxiety
Discomfort & Frustration
Happiness & Enjoyment
Last updated: 23/09/2026

How to utilise this in your designs

During onboarding, you could remind users how much effort they'd lose by skipping an import, using loss aversion to nudge them to bring existing settings across.

Split UI with black left panel titled "Get us up to speed" and a blue "Next" button; right panel with radio buttons for Edge, Safari, or manual password entry choices.
Example from
Arc logo
Arc

When users go to cancel, you could anchor them to a reasonable wait time and point out they'd have to start again, triggering loss aversion.

Ride cancellation pop-up in black, white UI, with red underlined warning text: "within 10 minutes," "you'll have to start your request again." Buttons: "Cancel request" (red text, gray) and "Keep searching" (white text, black).
Example from
Uber logo
Uber

After a cancellation, you could dynamically list the features each user is actually using, so the loss aversion feels personal rather than generic.

Subscription ends in 28 days alert in white box with blue border says renew to keep premium features on trail run and leaderboard apps; home tab active, icons for Maps, Record, Groups, You present.
Example from
Strava logo
Strava

When users long-press to delete the app, you could remind them to back up their data, using loss aversion around their history so they don't lose it.

iOS context menu for an app with a blue robot logo: options include Add An Entry, Avoid Data Loss (backup reminder), Edit Home Screen, Share App, and Remove App in red text.
Example from
Happy Scale logo
Happy Scale

You could experiment with a 'double or nothing' mechanism, using loss aversion to motivate users to keep going over a specific time period.

UI shows Power-Ups section with Streak Freeze (2/2 equipped, description) and Double or Nothing (get for 50 gems button). Icons: blue water drop, orange calendar.
Example from
Duolingo logo
Duolingo

Possible impacts

Reminding users of the features and progress they'd lose on cancelling could reduce churn, as the pain of that loss may outweigh the savings of leaving.

As seen in:
Uber logo
Uber
Creating loss aversion
Strava logo
Strava
Here's what you'll lose

Loss aversion may lower conversion rates on large commitments, e.g., annual plans, as users fear losing money if they're unsure they'll get value from it.

As seen in:
Arc logo
Arc
Leveraging loss aversion

Loss aversion could make users more anxious about 'risky' actions, e.g., going back in a form, as they fear losing progress. Clear consequences may help.

As seen in:
Strava logo
Strava
Here's what you'll lose

Leaning too hard on loss aversion could increase discomfort and frustration, which may lead some users to stop using your product altogether.

As seen in:
Uber logo
Uber
Creating loss aversion
Happy Scale logo
Happy Scale
Make a backup of this data

Even the possibility of loss can reduce enjoyment, so de-risking actions, e.g., showing how easy it is to cancel, might help users feel happier using your product.

As seen in:
Sentry logo
Sentry
An interactive hero H1
ConjuGato logo
ConjuGato
Bursting with joy
Peter Ramsey, Built for Mars Founder

Written by Peter Ramsey

Consultant to 100+ companies

Published: 01/09/2023