What is scarcity marketing? Basically, it is the tactic to increase the demand for a particular product or service based on the idea that the item is rare or hard to obtain.
Why does it work? Customers value products that feel more exclusive or unique. A customer probably pays more for a unique piece than for something that everyone else already owns.
How do you use this concept? Here are some of the most powerful scarce marketing techniques you can use to increase demand and generate more revenue for your small business.
As your inventory gets a little lower, tell your customers how many items are still available. If they find that there are only three specimens left, it will probably lead to an urgency they would not otherwise have.
You can also set an actual online selling timer. Let customers know that they will receive free shipping, an exclusive discount or other special offer if they complete the purchase within the next 10 minutes.
Alternatively, you can create a more general countdown to a sale. This tactic can apply to both online and personal sales. Just keep a countdown on your website or in your store until the end of your sale. This creates a visual representation that reminds customers that they need to buy their desired products immediately if they wish to receive discounts.
The actual products you offer can also create that sense of urgency and exclusivity. Is there anything your company could produce outside your normal product line that you could only offer for a limited time? For example, if you run a small t-shirt business, you may be able to make a number of hats with your exclusive patterns.
This tactic may even be useful for companies looking to expand their product line and think about how well different types of products can be sold. For each of these products, make sure that customers know that only a limited number are produced. It will create a sense of urgency and exclusivity.
Similarly, you can offer different types of products during each season. For example, a diner may offer pumpkin pancakes in autumn and gingerbread pancakes in winter. In these cases, customers will instinctively know that products are only available for a limited time. So you can be sure that they use the offer in every season.
If you decide to launch a new product that is an integral part of your product line, you will create some exclusivity and a sense of urgency by setting a lower introductory price. They will immediately get more people to buy if they know they get a better deal than anyone else.
Advance sales can help companies measure demand for new products and make sales even before production is complete. But it also makes products appear to customers as particularly exclusive and in demand.
For companies that sell memberships or products and services that customers purchase regularly, you may allow people to set an introductory price so they always pay that price. This encourages people to sign up immediately as they never know when you will raise prices.
For collectibles, manufacturers can number each product on a particular line. This is just a tactic to underline the fact that only a select number of products are available. And it can increase the value or demand for items that are already very popular.
If you have a particularly popular product in your store, show the customer how popular it is by viewing reviews, customer photos, and social posts related to this article. This does not necessarily make the product appear infrequently. But there may be an additional demand.
If a customer has viewed or placed a particular product on your website, tell them when the item is sold out. They may be more inclined to actually complete the sale if they know that they may not get the chance again.
You may also have items that are out of stock, but they may be returned to you. Let customers add these items to Favorites and set alerts to let them know when and when to reorder.
When customers see what's going on behind the scenes, they can better understand the demand for their products. For example, you can show them how many people are viewing a particular product or how many people have the item in their shopping cart.
Flash sales are usually only for a very short time and with a very limited notice period. So it's automatically a pretty exclusive event. You can host an online flash sale and simply invite people who follow your business on social media or subscribe to your email list. Or if you run a retail store, send out invitations and let your best customers profit from the sale.
You may also offer exclusive discounts that are not tied to a specific time of sale. Send coupon codes to your email list, to social media followers, or to people downloading your app. This rewards them as loyal customers and can lead to a higher appreciation of your products.