Want your customers to need your product?
Make it unavailable for them.
It's funny how people have a tendency to want something as soon as they can't have it.
This psychological “scarcity principle” is a powerful sales tool.
By giving the impression that something has a limited supply, you can make your audience a lot more likely to make a purchase decision sooner rather than later.
That could mean a limited number of slots in your online course or webinar. It could also mean introducing a product, or a discount on a product, for a limited time only.
Whatever you're selling, scarcity could be the key to making sales. If someone's thinking, “Well, maybe I'll buy this later. I'll bookmark it for now,” they might never actually come back.
If you create scarcity, they'll be more motivated to buy while they still can. It's an old school, tried and true sales technique, and it works.
Convince & convert explains the psychology behind this phenomenon.
Scarcity: Make It Disappear
Have you ever seen scarcity used to its fullest potential?
The results are amazing: people rushing to get one of the five books you have just released, or whatever it is you’re selling.
If you’re still unsure about scarcity, let me explain it quickly:
Scarcity places a limitation on a product or service, bringing out FOMO (Fear of Missing Out) in your audience.
Scarcity is a powerful psychological motivator because no one wants to be left out.
When someone feels like they’re being left out, their brain will go into “fight or flight” mode, causing high emotional distress.
The only way to relieve the distress is to completely themselves from the scenario or simply give in to the urge to do whatever it is you’re wanting them to do.
Scarcity is an art form, and Groupon employs it well.
Groupon takes a specific coupon and places a time limit on it.
[image source: Convince & Convert]
Notice the $60 coupon for catering is already gone. This creates a sense of urgency within your audience and will trigger them to react to what you’re trying to do.
Scarcity is effective; however, you must know and understand your audience and what they want or need in order for it to work well.
This is done by lots and lots of research and communication within your community.
Take your research, and build a product or service around your community. Place a time limit or product limit on it, and send it out to your followers you know need it.
Done right, scarcity can be a great way to gain attention for your business on social.
You can read more about how to leverage psychological principles to make more sales over at Convince & Convert.