What is Scarcity Marketing? Plus 5 ExamplesPublished on July 22, 2019
Scarcity marketing is a potent drug. It leaves customers wanting more and eager to hear what you want to say.
This obsession and dependency doesn’t come easy though.
You need to keep your cards close to your chest and properly deploy your strategy.
It’s only when this is done, that you’ll have your clients’ full attention. Since this takes a little bit of finesse to achieve, we’ll be looking into more of this.
While at it, we’ll also share some quick pointers and examples on how you can leave an imprint in your industry. Sounds like fun, right? It definitely is.
What is Scarcity Marketing?
Naturally, people believe that the grass is greener on the other side. As a marketer, you can use this to your advantage.
It’s the whole premise of scarcity marketing. Tapping into the desires of your customers.
To achieve this, you don’t really have to wait for them to gain an interest in an offering. Not at all.
You can spark the interest by appealing to them directly.
One way to entice them is by using discounts and limited time offers. Such tactics are brilliant since they make prospects believe that they really need to gain access to your product and/or service.
Scarcity marketing is quite common in product design and pricing of prestigious items. Some industries like the toy collectables world actually value products based on scarcity.
The Fear of Missing Out (FOMO) phenomenon is quite common. Not just in cultural settings, but in the sales scene.
Given just how prevalent it is today, you can issue amazing deals to further entice your target audience.
Since no one wants to be left out of a great offer, chances are high that your message will resonate with many people.
Scarcity Marketing Examples
1. Few-Items-Left Strategy
As Jack Brehm posits in his book, Theory of Psychological Reactance, a threat to or loss of freedom usually motivates people to restore that freedom.
In business, the argument rings true.
You’re certainly going to notice that once you provide few opportunities to your audience, you’ll be able to pull in bigger crowds. This is because when people feel that their choices are limited, they strive to access the said items with even more fervor.
You can notify prospects about the rate at which your popular items are flying off the shelves and sit back and watch everything play out. Since email is convenient, we advocate spreading such news using the platform.
The strategy works because it makes buyers feel that you actually care about their well-being. So much so that you didn’t want them to miss out on an amazing offer that would do them the world of good.
It’s simple, yet, very effective.
You can use this same tactic when sending out abandoned cart emails.
If buyers abandon the items in their cart, make sure you send them an email notifying them that the items they just ordered are selling really fast. If they really wanted the items, then the odds are that they’ll act fast and proceed to complete the sale.
2. The Limited-Introductory-Price Tactic
While it’s true that discounts are fantastic, when overdone, they can have a negative impact on your business.
You need to find a way to strike a balance. Having studied the markets for a while now, one tactic we’ve found to be effective is by using the limited-introductory-price tactic when you’re launching new products.
It’s a smart idea because it introduces prospects to a new product without them feeling that the item came too easy to them. As always, the goal is to ensure that the quality of your product is never in doubt.
Providing incentives to people motivates them to check out the items you’d like them to try out. So, if you’re thinking about starting a beta-program, this is a good way to kick start your initiative.
Because your product will be relatively new to the scene, it’s likely you won’t have buyer reviews or feedback to back up your assertions on how amazing your product is.
To cope, you need to offer early bird discounts to invite new prospects to check out your product. Letting them know it’s a one-time offer is sure to motivate them to act quickly and buy.
3. Limited-Bonuses Tactic
Everybody wants something extra.
If a customer feels that you’ve gone ahead and met their demands and then some, they’ll be sure to take note.
You can elect to dish out freebies for every item purchased or on specific items. As revealed earlier, it’s essential that you don’t make it seem that you’re not in business.
Create a sense of urgency by letting them know that the bonuses are time-sensitive. Quality perception is one of the selling points you want to work for you.
If you’re in the service industry, you can offer complementing services that are likely to bring a smile to customers long after the sale is completed. Once you start thinking from a buyer’s perspective, you’ll be able to clearly capture their intent and give them unmissable bonuses.
4. The Order-Before-XX-Today Strategy
It’s important to live by the “customer is always right” mantra. More than ever, customers are demanding and specific in their wants.
This was clearly demonstrated in a recent study which revealed that 38% of people believe technology is the trigger which has made them much more impatient than they were some 5 years ago.
Since its imperative that you cope with the times, you need to ensure that you always keep time on shipping and delivery items.
If you have a quick look at the current marketing scene, you’re bound to notice that the “next-day-delivery” tag is quite popular. If you can tailor your business to provide consumers with such a service and embrace the scarcity marketing concept while at it, you’ll be able to sell your products like hot cakes.
One way to do this is by adding a note like “order by 3 pm” for next-day-delivery.
5. The Limited-Products Approach
Producing limited items for sale is a fantastic strategy. This is because it makes people feel afraid that they won’t get to access the product in good time.
To pull this off, you can choose to either notify prospects that a popular item is back on the shelves for a limited time or promoting new items in advance.
Either way, the strategy works so well because it compels buyers to act fast and buy. You can further motivate them to take action by stating the number of items you’re producing and stress on the limited availability.
Having discussed what is scarcity marketing and the various ways to deploy the strategy, we’re certain you now have the necessary impetus to drive you forward.
Because so many enterprises are now doing time-limited sales, you need to find a creative way to stand out. As endearing as discounted prices are, you need to avoid giving out discounted prices every other week.
The more exclusive your offerings are, the more likely you’ll see an increase in the number of people checking out your products.
Since we’ve tackled a number of different tactics, we know that some resonated with you more than others.
Feel free to let us know which strategy you’re intent on deploying first.
Will you take the limited-bonuses path? Or will you sample the other options?