Marketers around the world continuously use psychological triggers to generate sales. Scarcity selling is one of the most popular tactics used in everything from eCommerce storefronts to subscription-based websites.
This method follows the scarcity principle, which states that people are interested in products that have a limited quality. Scarcity can apply to more than just single products; it can cover a range of products in the form of exclusive deals.
We want to show you how to use this psychological trick to generate more leads or sales on your website.
Use Remaining Inventory to Induce FOMO
The fear of missing out (FOMO) is a powerful scarcity tool you can use to convert more visitors on your website. A common tactic in this situation is to include the number of each product you have in stock.
When a customer lands on your eCommerce storefront, they will notice that you have a limited supply of certain products. When consumers see that there is a limited supply of a product, they often experience the fear of missing out and make a snap judgment purchase.
We can see this tactic in action on Amazon.
The limited stock is nonverbally saying to customers, “Everyone else is buying this product. You better hurry before you miss your chance!” The American Psychological Association conducted a study that revealed this behavior. They had two identical jars with cookies inside. The only difference is one jar had two cookies, while the other had ten. When they asked consumers which cookie they would prefer, they almost exclusively selected the jar with two cookies.
Why?
The people who took part in the survey perceived the jar with fewer cookies to hold more value because they were scarce.
Hold a Flash Sale
We are all suckers for a good deal. When a consumer sees that something is 50 percent off the regular price, there’s a good chance they’ll make that purchase if they were even mildly interested in your product or service.
You can use a flash sale to invoke feelings of scarcity and boost sales. It’s possible to test out your flash sale over different intervals of time to see if one sale outperforms the other. For example, a flash weekend sale may land you some nice additional sales, but a one day sale on Friday may yield higher returns due to the exclusivity of the sale and the fact that Friday is typically the day people get their paychecks, making them more likely to make an instinctive purchase.
Notice the countdown timer at the top of the image above. The call to action is clear; you have less than one hour to act to get 50 percent off your first purchase. If someone were on the fence about purchasing this product, this would likely sway them and convince them to make a purchase.
Out of Stock
It’s also possible to generate leads and sales by listing an item on your storefront as out of stock. You can use this tactic if you’re waiting for your shipment, or working on the final phases of development.
When you list an item as out of stock, make sure you include a way for the customer to add themselves to your waiting list. Include that they will also get exclusive deals and discounts when they join the waiting list. Once a consumer enters the waiting list with their email address, you’ve successfully added another lead to your email list.
The reason this method invokes scarcity is simple–when a customer sees there is a waiting list, they automatically assume that there must be a ton of people already on the list. Customers also believe that when the product does launch, supplies will dissipate quickly since it’s currently out of stock.
Conclusion
There are plenty of ways to add scarcity to your marketing campaign. It’s critical that you plan out your stock shipments before you run a flash sale or exclusive offer so there will be enough for everyone. The out of stock and fear of missing out tactics go hand in hand, they perceive the value of your products to be worth the investment since so many other people are invested in what you have to offer.
As your business expands, you’ll begin to learn how to implement scarcity tactics based on your product or services. One thing is for sure when customers think that your sock is limited or exclusive, they are far more likely to seal the deal and make a purchase.