Scarcity marketing is a promotion tactic where one gives customers the impression that if they do not take action now they may lose out. This work online marketing strategy makes buyers’ act now so as to avoid getting locked out on a deal.
Many are the times you see network marketing companies applying scarcity marketing to promote their programs. They use terms like, “make your payments today to lock your position”. The other day I joined an online program and after some days they sent me a mail.
The mail stated that a person in my powerline made some payments and I needed to lock my position so as not miss out in commissions.
Network marketing firms are not the only once that use this work online marketing strategy; companies out to push their products or services also apply it. You hear them using statements like “while stocks last” or “the offer is just for a limited time…”
Closing the door is perfect since people will rush to purchase a product or register before the time is up. Normally, after the said dates one is not able to get the product. As much as it may seem absurd to lock out buyers, what the strategy does is to compel people to come to a decision fast.
Just the other day, I saw this online commercial where they were saying the first 200 people to register on their site will get a free bonus work from home eBook. This scarcity strategy is like saying; the early bird catches the worm.
The idea here is to reward the people that grab the product first. It also goes further in creating some sense of urgency thus buyers rushing to scope the top cream.
These kinds of offers normally work very well since people rush so as to get the free offers or avoid being locked out. Am sure you too have examples of scarcity promotions you have come across, you can share them with us.
The secret about scarcity marketing is the ability to play with the human psyche. Ideally, people like it when they hold an item that is rare to get. So the more unavailable a product is the more people will want to acquire it.
In addition, scarcity promotion gives the notion of missing out on an opportunity. Therefore, buyers would go to great lengths to have the product and feel like they are in control. In short, customers will have no choice but buy the product right away.
Research has shown that over 90% of customers purchase a product just because they are getting a discount. But remember, this will only work if the said product is of high quality.
In many occasions scarcity marketing works well, but the misuse of the same can greatly be detrimental to ones online reputation.
To make sure that the scarcity advertising works you have to keep to your promises. If you tell buyers that you are offering 50% discount on a product for certain duration of time, ensure the offer remains in the stipulated time.
It is alright to add a day to two at most, since if you add more than that your product may not seem as valuable. The secret to succeeding in scarcity advertising is to firmly honor your promises. In case you promise you will re-open the doors on a certain day, do not open earlier than the said date.
The product you are offering has to deliver to its promised. It would be bad for business to promote software that claims to help in SEO and the product fails to deliver.
Another scarcity technique is where a product is released to a few people and then they are asked to invite others. A good example of a company that really loves this strategy is Google.
When Google launched Gmail, Google Talk and recently Google Plus they did just that. They allowed a small number of people to register then they closed and one could only sign up by being referred by people who are already members.
To demonstrate the attributes of the human psyche, most people end up soliciting for invites and probably they do not know if the program works or not.
If you have a product that you want to introduce to the market, scarcity marketing is a technique to think about. Most work online marketers have incorporated this marketing tactic with great success.
Something else to note is the timing; you need to observe the market trends so as to know the right time to release your products. It would be counterproductive to release a product while a similar one is in the market.
Do your groundwork and consider the reaction that people in your niche will have when you use scarcity promotion. Armed with the psyche of your target audience, you will be able to decide which strategy is best to implement.
The beauty of scarcity marketing is the fact that it can really hype your product. Just the fact that there is a short supply of a commodity can make a product’s value hit the roof.
You can still harness more online marketing strategies by following the links appearing right below.