Scarcity marketing and creating a sense of urgency increase conversions in all types of businesses and niches.

Here’s 9 stats about urgency and scarcity for proof.

Key Takeaways: What You Need to Know

  1. Scarcity Increases Perceived Value: Items appear more valuable when they are limited, enhancing desirability and driving customers to act.
  2. Urgency Boosts Engagement: Emails with urgency-focused language see significantly higher engagement and transaction rates.
  3. Color Psychology Affects Conversions: Colors like red, orange, and blue are particularly effective for call-to-action buttons, encouraging immediate action.
  4. Limited Enrollment Drives Interest: Short enrollment periods or limited trials can substantially increase opt-in rates and create anticipation.
  5. Webinars for Scarcity-Based Sales: Offering exclusive deals during webinars can triple sales, especially if there’s a time-based offer at the end.
  6. Visual Timers Encourage Immediate Action: Countdown timers are simple but highly effective at increasing conversions by creating a visual urgency.
  7. Clear Instructions Enhance Response: Urgent messaging is more effective when followed by specific, actionable steps for the customer.
  8. Fear of Missing Out (FOMO): Countdown timers and limited-time offers create FOMO, driving customers to act quickly to avoid losing out on the offer.

1. When items are scarce, they’re often perceived as more valuable

Way back in 1975, researchers Worchel, Lee, and Adewole conducted a study to better understand how scarcity impacts people’s perception.

The researchers planned to use something as simple as cookies in two identical glass jars. One of the jars held ten cookies while the other contained just two.

Even as the cookies and jars were exactly the same, the participants rated those cookies higher than the others. The scarcity of the two cookies in that jar had influenced their perception of value. Source

2. Urgency words used in emails will engage and excite customers for your promotions

An Experian report found that promotional or emails conveying a sense of urgency had at least 14% higher click-to-open rates, 59% higher transaction-to-click rates, and twice as high transaction rates compared to their average marketing emails.

Experian’s report also noted that by using urgency in their email subject lines, their transaction rates on sales increased 16%. For them, and many others, it’s most effective to mention the discount as well as the time limit in email subject lines. Source

3. Find colors and understand the feeling of urgency they can evoke from your customers

Use color psychology here to urgency in forms and CTA buttons. Red, orange, and royal blue are the most effective at to creating urgency. Royal blue and orange especially help to encourage action. Which could be just what you need to increase your conversions! Source

4. Boost your opt-in rates by keeping enrollment periods or trial periods short

When Noah Kagan created his free email course on marketing, he initially allowed only a seven day enrollment period. Eventually, he created a wait list for second round of enrollment.

Using this scarcity tactic, he tripled his email subscribers (from 12,000 to 50,000) for his OK Dork marketing blog.

 urgency tactics for marketing

5. Use webinar promotions to drive scarcity-based sales

One marketer, Yaro Stark, uses scarcity techniques in his product launches and webinars. In one webinar promotion, when he was first applying those principles to his webinar promotions, he was able to triple the number of sales during the final 24 hours.

Stark, and many other successful marketers, create a sense of scarcity by offering a promotion that’s only available during the webinar. once again a time dependent limitation made directly to people in that moment. He shared a special offer at the end of his webinar. Using this technique he saw that the bulk of sales came through at the deadline.

6. Visual symbols, like a countdown timer, raise the urgency level and drive actions

If you’re running a promotion or need visitors to showing a ticking timer, an actual symbol of time passing. Since 90% of all the information that enters our brain is visual, it’s an easy way to use urgency to drive action. Visuals also are processed 60,000 times faster than images.

countdown timer marketing

7. Urgency is most effective when follow-up instructions are given

Human minds are more likely to block out information that evokes a sense of urgency if there aren’t instructions on what to do next. One classic study that proves this was conducted by Howard Leventhal. In this study, he analyzed the effects of handing out informational tetanus brochures.

However, Leventhal handed out two different pamphlets. Both pamphlets listed the horrid symptoms tentus could have on your body. The first pamphlet described just the symptoms of tetanus. While the second also listed details on where to get vaccinated.

Those with the pamphlet that had exact information on how to follow-up were much more likely to take action. The number of individuals that followed through with the tetnus vaccination 25% higher than the first group.

8. Countdown timers and limited-time offers create a sense of consequence and fear of missing out

De Nieuwe Zaak, a full-service eCommerce agency in the Netherlands, ran an A/B test and found that the use of a countdown timer increased conversions versus no timer. Their simple test showed the timer worked best when placed at the bottom of the page.

Of course, the countdown timer increased product purchases. The presence of the timer alone created an 8.6% lift in conversions.

The limited time offer feels urgent; this urgency leads to visitors feeling a sense of consequence and fear of missing out. They could lose out on the incredible deal if they don’t take immediate action and they’ll feel better if they just act now.

How to Implement Scarcity Marketing in Your Business

To effectively integrate scarcity marketing into your business, start by identifying which type of scarcity—time-based, quantity-based, or exclusivity-based—best aligns with your product or service.

Here’s a quick breakdown of how to take advantage of each of them:

  • Time-Based Scarcity: Limit the availability of a product or offer within a specific time frame. For instance, create a “24-Hour Flash Sale” or “Limited Weekend Discount.” This encourages customers to act quickly before the opportunity slips away. Ensure you use a countdown timer to visually emphasize the time remaining.
  • Quantity-Based Scarcity: Use limited stock to signal exclusivity. Display stock levels on your product page (e.g., “Only 3 Left!”) to create a sense of urgency. This works especially well in eCommerce when users can see a countdown of remaining stock.
  • Exclusivity-Based Scarcity: Create a sense of privilege by making certain products or offers available only to select groups. For instance, “Early Access for Members” or “Exclusive Collection for VIP Customers.” This not only drives urgency but also promotes customer loyalty by making them feel valued.
  • Seasonal or Event-Based Scarcity: Capitalize on holidays, seasons, or events to give customers a reason to act. Examples include “Black Friday Weekend Deals” or “Spring Limited Edition.” This approach leverages both scarcity and timeliness for high engagement.
  • Pre-Orders and Waitlists: If you’re launching a new product or service, create a waitlist or allow pre-orders for limited slots. This approach builds anticipation and lets customers feel like they’re getting something special before others.

Examples of Brands Successfully Using Scarcity & Urgency

Apple: With product launches like the iPhone, Apple masterfully uses scarcity by creating a limited supply at launch, which drives high demand and lines outside stores. Their “pre-order now” strategy also builds anticipation, resulting in instant sellouts and high media buzz.

Starbucks: The “Pumpkin Spice Latte” is a seasonal favorite that’s available only for a limited time each year. Starbucks has built an entire marketing campaign around this seasonal drink, making customers feel they must purchase it before it disappears until the next fall.

Amazon: Flash Sales and countdowns during events like Prime Day and Black Friday build urgency. The “only X left in stock” and “deal ends in Y hours” messages create a sense of immediacy that compels users to purchase now to avoid missing out.

Nike: Through its exclusive “Sneakers App,” Nike creates limited-edition releases for specific sneakers. This drives both scarcity and exclusivity since only a limited number of shoes are released, and customers know they must act fast.

Booking.com: The site regularly highlights “only X rooms left” or “X people are looking at this property” messages, creating real-time urgency. This is combined with reviews and ratings, further reinforcing the idea of missing out on a high-demand option.

5 Mistakes to Avoid in Scarcity Marketing

  1. Overusing Scarcity: Using scarcity too frequently can lead to “urgency fatigue,” where customers start ignoring the urgency because it feels like a constant gimmick. Reserve scarcity for genuinely limited items or specific sales to maintain authenticity.
  2. Using Fake Scarcity: If customers realize there’s actually plenty of stock after a “low stock” message or an offer is always “ending soon,” you risk losing trust. Make sure any scarcity or urgency claims are accurate and genuine.
  3. Lack of Follow-Through on Expired Deals: If you promise a time-limited discount and leave it active afterward, customers may feel cheated. Expired deals should stay expired to reinforce the importance of scarcity-driven marketing.
  4. Failing to Provide Next Steps: When customers feel urgency, they need clear steps on what to do next. A compelling CTA, clear instructions on checkout, or prompts to “grab the deal” can guide them toward action without confusion.
  5. Using Only One Scarcity Approach: Relying solely on “limited stock” or “limited time” can feel monotonous. Try a combination of approaches, such as a countdown with low-stock notifications or exclusive member-only access, to keep your strategy fresh and effective.

Psychological Principles Behind Scarcity and Urgency

  • Fear of Missing Out (FOMO): The idea that people are compelled to act to avoid losing out on something valuable is a powerful driver. FOMO is why limited-time offers or “last chance” messages work so well, especially in social and experiential marketing.
  • Loss Aversion: People tend to avoid losses more than they seek gains. By framing a deal as something they might “lose,” you tap into this tendency, prompting people to act sooner to avoid missing an opportunity.
  • Reactance Theory: When people feel their freedom to obtain something is restricted, they react by wanting it more. Scarcity heightens people’s perception of value by suggesting that availability is being limited, which can trigger a psychological desire to restore that freedom.
  • Social Proof: Knowing that others are engaging in the same product or service heightens its perceived value. When websites show real-time data on products being “watched” or “purchased,” it signals to the customer that others see the value in acting now.
  • Anticipatory Pleasure: Scarcity fuels anticipation, making the customer’s purchase experience more thrilling. When customers expect an upcoming release or limited product, they envision future enjoyment, increasing their likelihood of purchasing.

Wrapping Up

Scarcity marketing is a powerful tool that taps into human psychology, driving urgency, FOMO, and anticipation to boost conversions.

When implemented thoughtfully—using genuine scarcity, clear calls-to-action, and varied strategies—scarcity marketing can effectively increase sales and build brand loyalty. By avoiding common pitfalls like overuse or fake scarcity, you can create authentic and compelling campaigns. Remember, a well-balanced approach keeps your audience engaged, encourages immediate action, and sets your brand apart.

Embrace scarcity wisely, and you’ll create lasting value and urgency-driven results.

What do you think about using urgency or scarcity marketing in your business? Let us know in the comments.