Regret Avoidance Syndrome: Why Do People Do What They Do?

Have you ever wondered what makes us do the things we do, or on the other hand, fail to do the things we don’t do? In other words, “Why do people do what they do?” Psychologists, motivational speakers, sales trainers, and management experts have pondered this question for decades, and they’ve come up with an exhaustive list of possibilities. In this article, I’m going to try to simplify the answer to this question and share some ideas on what you can do about it when dealing with customers, employees, family, or for that matter, yourself.

On a recent vacation to Costa Rica, I experienced something that I’ve named Regret Avoidance Syndrome, and it strikes at the root of any action or choice we make. To make my point here’s my story about what happened on my trip that brought me to this conclusion.

My wife Sue and I were joined by her son and daughter-in-law, two grandkids, and three of their friends for a week at a Costa Rican surfing beach. When I was a teenager, I did my share of surfing, and of course, the whole family thought I should relive some of my surfing memories. No doubt, I remembered being a better surfer than I probably ever was in reality. However, today’s reality is, at age seventy-five, it’s difficult enough for me to get up from the couch let alone stand up on a surfboard!

So, all week long, I just laughed off their encouraging chiding, “Come on Grampa; you can do it! Show us how it’s done!” However, little did they know that something inside me was telling me to do it. I was being held back by questions like: “Will I look ridiculous?” “Can I even do it?” “Will I get hurt or drown?” These questions are classic fear of failure syndrome.

Still, every night, I dreamed about surfing. I wanted to do it, but… Our last night before heading home, a new thought crept into my mind, “Will I regret being here and not trying it more than trying it and failing?” Ultimately, I made the decision to do it and announced it to the kids – now I’m stuck. The next morning, I headed to the beach. Wouldn’t you know it? That morning, the waves were the biggest of the entire week! But my fear of failure had been overcome by the fear of missing out and into the ocean I went.

While I don’t have any great stories to share about how I conquered the storm-driven surf that day, evidenced by the fact that I’m writing this article, the worst of my fears didn’t happen – I survived. I’m sure I looked ridiculous. The waves did beat me up to the point that I needed to visit the Chiropractor as soon as we got home. And I didn’t succeed in standing up on the board. However, I did have a blast and I would have never had the experience if I’d allowed Regret Avoidance Syndrome to hold me back.

Regret Avoidance Syndrome is something that everyone deals with on some level whenever they make decisions. It doesn’t matter if it’s a consequential decision or something as mundane as which flavor of ice cream you want.

Did you know that 95% of buying decisions are driven by emotion? Regret is an emotional response, and it’s the leading motivator when customers face auto repair purchases. It all boils down to just one question in your customer’s mind, and it’s up to you to help them resolve it. Before I tell you what that question is and how to deal with it, let’s explore how regret avoidance works.

Everyone gets Regret Avoidance Syndrome. See if you can identify how regret avoidance plays a role in each of the following examples.

• FOMO – Fear of Missing Out. This occurs when the restaurant server asks, “Would you like a slice of pie after dinner? There’s only one slice left, and I’ll save it for you if you want it.”
• Buyer’s Remorse kicks in after deciding to buy. Who hasn’t had a customer approve a repair job only to call you a few minutes later to call off the job?
• Choosing between two undesirable options comes down to what you will regret the least.
• Risk Aversion is when you’re faced with choosing A to avoid the occurrence of B. The question becomes, “Is B serious enough to justify doing A?” Preventive maintenance services fall in this category.
• Either-or versus both-and decisions. People with a scarcity mindset tend to think in terms of either-or choices rather than seeing the possibilities of having both – vanilla or chocolate rather than one scoop of each.
• Feeling powerless or out of control shows up as resignation, despair, or fear – none of which lead to good choices.
• Analysis Paralysis is when a person over-analyzes the details and consequences to the point that they do not make a decision.
• Fear of Future Consequences can affect clear-minded decision making. This is often financially driven, like having to give up something they really want in order to fix their car. “If I spend the money on this, I won’t be able to take that trip I’ve been saving for.”
• Regret of Not Buying happens when they consider the possible consequences of not fixing it. “Will I get stranded?” “Will it cost more to fix it later?” “Can I sell it in its current condition?” “Can I afford to replace it?”

Obviously, the above list is a small sample of possible examples. However, if you could help customers with some or all of these, think about how it would impact your sales. By identifying the actual regret the customer is dealing with, you can help them with their choices.

Regret Avoidance is the strongest emotion when we buy because we are naturally loss averse. In fact, losing hits us twice as hard as winning or gaining. Every decision your customers, your employees, your family members, or you make is based on which has the least amount of regret involved.

So, the question that you must help every customer resolve is, “Will I regret buying this repair job more than not buying it?” They might be deciding whether to have your company do it or passing on having it done at all. In either case, Regret Avoidance Syndrome is involved.

It’s up to you to remove or minimize regret by guiding customers, helping them make informed decisions and reassuring them when they make good choices. To do this, it’s essential that you listen to the customer – their questions, their concerns, their spoken and unspoken fears, their body language, and their demeanor. It’s up to you to make your customers Regret Avoidance Syndrome disappear and show them why they should choose your shop. Using a customer-centric service routine is the key to delivering legacy-level customer service – service experiences that your customers will remember and tell their friends about.

There are ten basic steps in what I call the Lagacy Service Sales Cycle. The ten steps are designed to be executed consecutively, and each step is linked to the next. Here’s a brief description of each step.

1. Initial Contact can occur via the internet through your website, email, or text message. You should convert the contact to a telephone conversation as quickly as possible because you cannot build rapport and alleviate Regret Avoidance Syndrome online.
2. Telephone conversation routines should help the customer feel comfortable with bringing their car in so you can check it and give them an estimate. Price shoppers want to know what to do to get an estimate. They’ll usually make an appointment if you just ask, “Would you rather bring it in today or tomorrow so we can check it and give you an estimate?”
3. Start completing the repair order on the phone. You’ll have fewer “no shows” because getting the vehicle details and their contact information creates a sense of obligation, and a firm appointment time creates urgency and commitment.
4. The meet and greet step begins when they arrive at the shop. Build rapport by discussing their concerns and reassure them that you’ll get to the bottom of the problem. Begin with a confirmation road test.
5. Explain the purpose of the diagnostic procedure. It involves six Cs: Concern (symptom), Condition (problem), Cause (fix it so it stays fixed), Correction (what needs to be done), Cost (estimate to do the job), and Completion (day and time).
6. Explain the four possible results of the initial road test and diagnosis.
   1. It’s operating normally.
   2. It’s something minor or routine that you can fix with a targeted repair.
   3. It’s something major that will involve removing the transmission and internal repairs or rebuilding.
   4. It’s inconclusive and more diagnostic testing or an inspection will be needed.
7. Present the next step. What do you recommend? What will it cost? When can you do it?
8. Offer solutions with choices. Customers feel empowered when they can make informed choices. Offer them good choices and reassure them.
9. Progress updates are the best way to alleviate worry. Give them regular updates as the repair progresses, and if you’re keeping it overnight, touch base with them before the end of the day. Don’t make promises you can’t keep and keep your promises.
10. Car delivery is the best time to reassure them that they have come to the right place and made good repair choices. Review everything that was done and reassure them by explaining your warranty, and that you’ll be there for any future needs.

If you’d like some additional help with providing a regret-free repair buying experience, consider reading three of my earlier articles: Don’t Fall Off the Sales Cycle – October 2023, Building Relationships – May 2024, and Unremarkable – June 2024. You can also go on the ATRA training site, VTS – Virtual Training Solutions and watch my new service advisor training course called, “Legacy Customer Service.” It consists of a brief introduction and four sessions of less than 30 minutes each. It explains how to eliminate Regret Avoidance Syndrome from the initial contact to post-service follow ups.

About the author — Thom Tschetter has served our industry for over four decades. His article topics come from our readers and Thom’s years as a speaker, writer, certified arbitrator, business consultant, and his own in-the-trenches experiences. Thom owned a chain of award-winning transmission shops in Washington State, and ATRA presented him with a Lifetime Achievement Award for his years of training for the transmission industry.

Learn more about Coach Thom Marketing and get unlimited free access to sales and marketing articles and videos in our online library. Initial consultations and guidance are always free. CoachThomMarketing.com Phone: 480-773-3131 Email: coachthom@gmail.com