The Ultimate Guide on Scarcity Marketing

Marketers use discounts available for a limited time to bring in customers.

However, the key here is not the discount, it is the urgency.

When people think that they just have a small window to obtain a discount then they will hurry to do so.

Some businesses give a discount on their new products so that people buy them however, they may be unaware that more than discounts, it’s the urgency that is making people buy.

Hence, there are ways to increase sales without having to give discounts.

Limited product availability is more effective.

It gives a sense of exclusivity.

We are made to think that if things are only available for a limited time then they are better than what we already have.

It is purely a psychological reaction where we want something and in order to make sense of it, assign positive qualities to it.

A sense of losing something creates a stronger response than simply gaining something of equal value.

This is why sales work and 68 percent of millennials buy things after getting caught in FOMO.

Utilizing the Element of Scarcity

The value of an experience, product or its desirability increases due to scarcity because it is useful, can be possessed and is also transferable among people.

Thus any goods and services can utilize scarcity for sales.

Marketable items that use scarcity increase desirability.

Scarce items suggest exclusivity hence, the exclusive access makes it more desirable.

It is not available to everyone.

Therefore, airlines have first-class and clubs have VIP membership.

Besides being exclusive, they are also more valuable.

Supply and demand law suggests that everything which is in greater demand but low supply will have a higher price.

Hence, these difficult to find items that are low in quantity become status symbols.

Thereby, people rush to buy them.

This also makes them feel powerful.

You have an item that others want but cannot have, it becomes your status symbol as well.

The more scarcity, the more people desire that item.

Hence, people choose scarce items rather than non-scarce ones of similar value.

This not only works in the real world but surprisingly also in the virtual one.

Now you know how scarcity works so let’s proceed to how you can use it.

You can use these strategies as an email, advertising or social media posts.

However, do not overuse any tactic because it will no longer remain useful or compelling enough for people to make purchases.–

Combining Gifts with Scarcity

It is a good customer service strategy to give your customers something extra.

They may appreciate your generosity and become returning customers.

Though this is also an opportunity for you to add a scarcity element and ensure that your customers make a purchase.

One scarcity marketing example would be to give a sought-after freebie after buying 2 or more products, however, the offer is for a limited time.

Its time-sensitive nature will make people hurry and purchase more products at their earliest.

However, it is important to remember that giving away a freebie is not necessarily always a good idea.

If you deal with luxury goods, then it can leave the impression that you are giving for free is not valuable enough or is not selling well.

Hence, other than products, you can giveaway a related service or resource. Giving a gift card may work too.

For instance, if you work with television sets then you can give a streaming service free for 3 months after purchase.

Moreover, giving free training, membership for services or products can work too.

Only a Few Items Left

When you tell people that this product or service is in limited supply then the thought of losing the item becomes stronger.

When there are fewer opportunities our freedom of choice is lost.

Hence, when our the freedom to choose surfers, we are more inclined to avail the opportunity.

One way to apply this to your customers is to send them an email telling them how your popular items are selling fast.

Once they know that your items are almost sold out, leave a call to action so that they take action NOW!

Do not use words like tomorrow, midnight instead create a sense of urgency by using Now.

You can add another line by listing the number of items left.

For instance, if you write only 200 more pairs of shoes left then they are more likely to buy them immediately in case they miss out.

This can also go for abandoned carts.

Sometimes people may put items in their cart but forget about it or not want to purchase them.

Send the customer an email stating that the items are selling fast so they can only buy this soon otherwise the stock is running out fast and these items will be sold out.

Hence, they may return to complete their order and finally buy it even if they

Producing Only Limited Quantities

Festive collections and a few experimental products are usually made in less quantity.

Use this to your advantage and let your customers know that there are only a few items available.

They become more sought after when they are on a timer.

In order to avoid the loss of freedom of choice when the item will already be sold out, people may rush to buy it.

If the item is scarce then people fear not being to make a choice to purchase it rather than getting it.

Pre-ordering is one way to go about it.

Let your customers know that a previously popular item is back in stock.

Add the number of products available so that they can order it in advance in case they miss out.

Or you can do the same after releasing the item and informing about the limited quantities.

Ordering Items Before a Set Time

This one is also about giving people an incentive i.e. fast delivery.

Thanks to the social media world, people are much more impatient today than they were 5 years ago.

Hence, if your incentive is delivering at your customer’s doorstep by the very next day then you get an advantage over your competitors.

But not only that, but you can also use this opportunity to add scarcity.

Let them know of a certain time by which they should order to get next-day deliveries.

This is their call to action that also gives a sense of urgency.

Since they know their product will be delivered late if they do not buy right now, they will take the step.

Thus, it will help bring in more buyers and they may not leave their items in the car for long.

Giving Offers For New Products But for Limited Time or Number

Putting a discount on new products gives people an incentive to buy them.

Since new products do not have user-generated content, product reviews or any other sign of social proof, a discount can get people to at least try it.

However, you need a very to choose a very careful approach.

A big discount can suggest that the product is of low quality.

Give a reasonable discount only on some quantity and not the entire stock of the new product.

Next, let your customers know that the early bird discount is only a one-time offer.

Hence, they should take action immediately.

Using Specific Devices for Scarcity Marketing

You can limit the tactics to a device.

For instance, people now make more purchases more on a mobile phone than on a laptop.

You can make an offer specific to mobile phone users such as downloading your app in exchange for an incentive.

A limited offer or a discount for making a purchase.

Make sure that this offer is only specific to that device as it will make it more exclusive.

Adding a time limit will also add to the element of scarcity along with

Other ways to create scarcity include:

• Showing real-time sales and processes through a live stream
• Showing numbers that highlight the sales, demand and popularity of an item to create FOMO
• Purchase and sale price countdowns
• Seasonal offers

However, this tactic has its own set of limitations too.

If you do not have products that customers need then putting a timer on it will do no good.

Hence, if your sales are falling, probably consider first launching good products.

Then work on making a loyal customer base that is very eager to buy your new products.

Thus, it will not suddenly give a rise to your sales of products that are not in demand but increase desirability for those that are.

The element of scarcity should be used scarcely.

Do not put on limited stock available on several items.

Also, release limited editions rarely.

If you push through a lot, this will only annoy your customers that you never have enough products.

While this tactic can bring in sales, you should rarely use it, maybe on special occasions only.

If you apply the strategy in excess then it can also pressurize your customers.

Getting exposure to too much sense of urgency they feel due to scarcity may make them realize that you are pressuring them to make a decision.

Hence, they may feel forced to act and not make their decisions of their own will.

That does not go down well and your loyal customers may end up severing ties with you.

Finally

Before applying any scarcity marketing tactic, test it!

Testing can help you analyze how the same tactics and strategy will be received by your audience.

Also, remember to do everything in moderation but give enough incentives for your customer base to feel that you and your brand cares for them too.