If used in the right way, scarcity can be a powerful tactic in helping to draw attention to products and motivate consumer behaviors. If used in the wrong way, it can hurt the brand-to-buyer relationship. Here are a few fast facts, covering both angles:
1. On a basic level, consumers place a higher value on products that seem rare or scarce. The harder a product is to acquire, the more consumers want it. (Source)
2. Fear of missing out (FOMO) is a tactic that can be used as part of scarcity marketing to encourage customers to purchase products before they sell out. Brands often see the most success with FOMO when the number of product items left in stock is included in a call-to-action. (Source)
3. Using time as a form of scarcity can increase a brand’s conversion rate by five percent. Putting a timer on items in a customer’s cart, or on how long a product is available, drives urgency around purchasing. (Source)
4. Flash sales can invoke customers to act fast. Not only does a sale create a limited window for the opportunity to purchase, but it also instills the possibility of a product selling out, creating a sense of urgency in consumers’ minds. Double whammy! (Source)
5. Informing consumers that there are others interested in purchasing the product or offering that they're considering hints that they should buy fast. Companies like Booking.com use different language tactics like “7 people are looking at this now” and “In high demand — only 3 rooms left!” to alert potential customers that hotels are booking up quickly. (Source)
6. Abusing scarcity techniques can result in losing the trust of customers. Too much pressure to buy can take away from the purchasing experience and end up hurting the brand-to-buyer relationship. Make sure the scarcity is sincere! (Source)
Leveraging the power of scarcity can add value to your brand’s products and higher conversion rates to your sales funnel. Consider adding it to your marketing strategy, but make sure to keep it genuine.