During our previous three parts on Marketing and Psychology we discussed the evolution of marketing and psychology. Each facet of this series builds on the previous, making your knowledge stronger and positioning you as more of a leader.
Part Four of our series is all about Scarcity. The rarer the opportunity or event, the more valuable it becomes. Likewise, urgency is key in honing in on unique opportunities and value packed sales. This is where Scarcity Marketing comes into play.
There are two general roads of Scarcity Marketing. There is the Limited-Supply approach, and then there is the Limited-Time approach.
In this approach to Scarcity Marketing, companies stress the fact that when supplies run out, the opportunity is gone. This creates urgency in the need to take advantage right now, rather than saving something in your cart for a later opportunity. An additional feature to increase the sales during a limited supply marketing campaign is to highlight the number sold, or displaying the amount of products left, with a constant decrease in the amount based on seconds or sales.
In the Limited Time approach to Scarcity Marketing, time is key and every second counts. You literally create urgency simply based on the fact that time is running out and the sale only lasts so long. This can either go with an open ended “Limited-Time” approach or by setting the last day of the sale so your customers can see that the opportunity truly is limited and that they will miss out it they wait.
Wherein lies the problem with Scarcity Marketing, is it the value of your product is low and thus the perception is skewed. The same goes for if the quantity is not limited, and your customer-base feels underappreciated. Keeping these drawbacks in mind, both of these potential issues are easy to avoid with some additional marketing strategy and transparency on behalf of the products value and availability
Scarcity Marketing is a great tactic to drive up the perceived value of your product/service and to create urgency and thus a demand.
To speak with us more about marketing strategy, feel free to give us a call! We’re here to help. Call 610-317-4010 or email Jeremy Jones at [email protected].