Scarcity Marketing Overview
Scarcity marketing is a really interesting way to increase sales. You will quickly figure out the fact that Amazon often takes advantage of this. We are talking about a selling strategy that practically motivates people to make purchases by simply saying that there is a clear cut shortage of what is currently available and just a limited time to act in order to take advantage of the deal. We are faced with the main goal of creating urgency by using a highly aggressive call to action. People end up scared that they will not be able to take advantage of the deal in the event that they do not act really fast. A lot of money is available through extra sales.
A Background Of Scarcity Marketing
The very first scarcity marketing instance cannot be pinpointed. This is a technique that has been used for a really long time. Disney Vault is, most likely, the best example you can analyze. It appeared in the eighties. The studio basically started to release movie limited editions and basically urged customers to buy items before they would go back into the vault. Such a limited time deal basically created many sales. Nowadays, there is an increase in the number of companies that use scarcity marketing. Even Apple does so successfully.
Scarcity Marketing Benefits
The main benefit associated with using scarcity marketing is that you can position services and products as commodities. The perceived value of anything that is sold becomes higher and this fear of limited availability automatically makes people buy really fast. At the same time, you can use scarcity in order to interact with the audience in a brand new way. You create a background that is attractive through the reason behind the scarcity. The customer’s attention is much easier to both capture and keep.
In the event that you use scarcity marketing in an effective way, you can end up with a cult following, which is definitely great. You can easily make a lot of sales and increase your profits with this marketing method.
Scarcity Marketing Disadvantages
Just as with any marketing strategy, various disadvantages can appear. Scarcity marketing can easily backfire if you are not careful. Some of the potential disadvantages include:
- If the services or products promoted are low value the reputation of the company will be hurt.
- Many will believe that this is a trickery in the event that you just create a scarcity illusion.
- You can lose customers in the event that you create an exclusivity sense.
- Scarcity fear can turn off some clients.
Using Scarcity Marketing Strategies
There are many different ways to use scarcity marketing. One of the methods is to launch a campaign that will find a limited number of potentially interested clients. As an example, you can say that you only have X products available before a client base is basically full. That can be highly effective in the event that you have a really large audience or mailing list.
It is also possible to offer limited time discounts or services for the new clients. You basically need to make the time or quantity limitation present and then market it highly aggressive at intervals that are regular or in the event that quantity is close to running out. At the same time, you can simply make sure that you offer an expiration date for the deals you have.
Keep in mind that there are many different ways in which scarcity marketing can be used. Just make sure that it is something that your potential or current clients would like. If not, you may end up upsetting them.