Scarcity Marketing Can Boost Conversion Rates by 400 Percent, Kenny Goodman Says in New Find the Edge Video

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Artificially limiting the supply of a product or service can greatly increase demand for it, and boost conversion rates – but is it ethical? Find the Edge’s founder, Kenny Goodman, discusses scarcity marketing in a new video published today.

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Markets are powered by supply and demand and if you can lower the supply, demand will rise and therefore the perceived value of the product will also rise.

Scarcity marketing can be an effective technique to greatly improve conversion rates, but only if used ethically and sensibly, Kenny Goodman has said.

He makes the comments in a new video published on the site, which discusses exactly what scarcity marketing is, and explains some of the contentious issues surrounding its use.

He said: “You see scarcity marketing everywhere. Why? Because it works.

“Whether it’s missing out on a sale at your favourite shop, or missing tickets to see your favourite band because your computer froze, missing out can make you feel miserable.”

“To prevent ourselves from feeling this disappointment too often, we’ve built up a natural psychological resistance, which encourages us to take action before it’s too late.”

Goodman goes on to explain how marketers can trigger this reaction in their audience, through subtle techniques such as creating the impression that there is only a limited number of a product available, or that an immediate decision is required in order to benefit.

“When you think about it this makes a lot of sense. Markets are powered by supply and demand and if you can lower the supply, demand will rise and therefore the perceived value of the product will also rise.

“The big question is - is it ethical, and also is it smart? If your audience sees your product is constantly on offer they’ll know the scarcity is artificial. Also, no one’s going to be impressed if they rush to purchase, only to find you keep repeating the same offer.

“To work effectively, it’s important for your audience to know exactly why the scarcity element is necessary.”

The video can be viewed in full here: http://www.findtheedge.com/sales-marketing/conversion-optimisation/is-scarcity-marketing-ethical.

Kenny Goodman is the founder of Find the Edge, which is a business website that launched in February 2013. More about him can be read here: http://www.findtheedge.com/expert-panelist/kenny-goodman.

The site is still accepting applications from business leaders who are interested in becoming Expert Panellists, and sharing their knowledge on the site. More information can be found here: http://www.findtheedge.com/expert-panel-further-info.

The site has also recently launched the innovative new Influence Hub service, which can be explored here: http://www.findtheedge.com/be-an-influencer-with-influence-hub.

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