When we see there’s a chance we might miss out, something in our brain kicks in that motivates us to act where we might otherwise have procrastinated.
Manchester (PRWEB UK) 9 August 2013
Scarcity can be a simple way to hugely boost conversion rates and speed up the purchasing process, Kenny Goodman has said in a new Find the Edge article.
He uses his regular Friday column to discuss the effects introducing an element of scarcity into marketing material can have.
Goodman said: “The feeling of missing out is universal and it can be worse than an itch that you just can’t reach.
“To prevent ourselves from experiencing this disappointment too often, we’ve built a natural psychological defence, which encourages us to take action before it’s too late.
“When we see there’s a chance we might miss out, something in our brain kicks in that motivates us to act where we might otherwise have procrastinated.”
Goodman suggests marketers can trigger these feelings in their audience by limiting the availability of special offers, or by only making products/services available for a limited amount of time.
He uses Groupon as an example, discussing how the site urges users to sign up for deals quickly using countdowns to emphasise the limited nature of the offers.
He also warns against overusing the techniques, however, or using them unethically.
Goodman said: “When you think about it, this makes a lot of sense. Markets are powered by supply and demand. If you can lower the supply of a product, demand for it will rise, and the perceived value of the product or service will also grow.
“Of course, it is essential to use these techniques smartly. If your audience sees your product is constantly on offer, they will know that the scarcity is being created artificially. Equally, no one’s going to be impressed if they rush to purchase your product only to find you repeatedly extend the same offer.
“Instead, you should aim to create genuine offers that naturally compel your audience to convert.”
The article can be read in full here: http://www.findtheedge.co.uk/sales-marketing/conversion-optimisation/the-power-of-scarcity.
Kenny Goodman is a marketing expert, and he launched Find the Edge earlier in the year in order to provide a website where business leaders can share their knowledge with other members of the community. More about him can be found here: http://www.findtheedge.co.uk/expert-panelist/kenny-goodman.
The site is still accepting applications from business leaders who would like to become expert panellists. For more information, see here: http://www.findtheedge.co.uk/expert-panel-further-info.