A recent study indicates that the sales tactic of using "social proof" to promote annuities is counterproductive, reducing acceptance rates by nearly 18%. Instead, advisors are encouraged to use strategies like default bias and consistency framing, which have shown to increase acceptance by 27% and over 20%, respectively.
The key insight for you as an investment professional is the finding that using "social proof" as a tactic to promote annuities is counterproductive, reducing acceptance rates by nearly 18%. Instead, employing "default bias framing" and "consistency framing" significantly increases acceptance by 27% and over 20%, respectively. This suggests a strategic shift in how you might advise clients regarding annuities to enhance their retirement portfolios.