The first two strategies for converting customers in 2018 and beyond delve into buyer psychology.
The concept of scarcity doesn’t require you to be an expert in user behavior, but rather acknowledge a basic principle of marketing that’s existed as long as business itself.
That is, people want what they can’t have or what they think will soon be unavailable.
This same phenomenon explains why people flock to the pump during a fuel shortage.
Understanding the psychology of scarcity can help you keep users in your funnel and ultimately boost conversions at the end of the day.
Some marketers are pensive about scarcity marketing because it’s akin to fear marketing (in other words, exploiting one’s fears or insecurities to sell a product).
While fear is indeed a potentially powerful tool in marketing a product, it can likewise drive potential buyers away (fear is fear, after all).
Plenty of perfectly reputable brands use scarcity marketing on a regular basis and achieve their sense of scarcity by offering up…
- Products that have a limited run of copies (50 or 100, for example), representing a truly one-of-a-kind offer
- Awareness of whether or not a product is still in stock and a display of exactly how many are left (in other words, purchase while supplies last)
- Special edition products that offer something truly unique, available to only a select number of users
Bear in mind that these offers don’t necessarily have to be physical products, as something like an ebook or software suite could also be pushed using such marketing.
For our company, we don't buy into "fake scarcity" like many people. We only work with a certain amount of clients at a time, so limited spots to work with us is VERY real.
As long as you’re providing value to your users, scarcity can be a powerful tool.