What is Scarcity Marketing?
Scarcity marketing is based on a customer’s fear of missing out on something valuable. It’s focused on the psychological notion that people desire difficult-to-get things. Sales that are ‘ending soon’ are constantly available in stores. Alternatively, they may provide discounts that are only valid until a specified date. This is known as scarcity marketing.
Our fear of missing out, or FOMO, is the reason why scarcity marketing strategies are so effective. It’s fuelled by the phenomenal rise of social networking, which allows us to connect with individuals all over the world. However, individuals are becoming more concerned about missing something crucial as their use of the internet grows.
The following three elements are required to make this strategy work:
You want more face-to-face engagement when there are fewer marketing channels available. It’s a more personal way of advertising.
· A simpler Online presence
You want to create engaging social media content rather than promotional sales posts. Give customers the option to learn more about you on their own time.
· An amazing customer experience
This is vital. It’s pointless to be exclusive if what you’re offering isn’t. It’s easy for exclusivity to backfire if the brand isn’t exceptional in any way.
How to define exclusivity in other ways?
· Limited Quantities
· Limited Editions
· Exclusive Content
· Limited time offers
· Invite only
· Curated Membership
Advantages of Scarcity Marketing:
The main advantage of using scarcity marketing in your business is that you can position your products as a commodity for services. This raises the perceived value of what you’re selling, and the fear of limited availability causes people to act quickly to purchase.