The Fear of Missing Out: How to Improve Sales Using Scarcity
The fear of missing out (FOMO) can be a powerful motivator for potential customers. Read on to learn how to improve sales by leveraging this technique.
Key takeaways:
Did you know that some brands strategically create scarcity to make particular products difficult to buy? Yes, some companies purposely engineer a sense of limited accessibility, making their products more attractive because they’re available only to a few lucky customers.
This is called scarcity in marketing, and it takes advantage of people’s natural fear of missing out (FOMO). By using this technique, businesses can increase sales and create awareness around a particular product, creating a real purchase rush.?
Some brands use tactics like coupling their products with flash sales, countdown timers, and expiry dates. For instance, Amazon has Prime Day, where members get extra-low prices for only 48 hours, a classic case of FOMO exploitation.
Your business, whether small or big, can also leverage this technique. But it's not necessarily as easy as it sounds. Using scarcity to its maximum effect requires careful planning and execution. So, here’s everything you need to get the most out of FOMO, including tactics on how to improve sales.
The psychology behind FOMO
For early humans, larger groups meant better chances of survival, so seeking out the safety of the group became a key instinct. Today, the fear of missing out and getting left behind still lingers and may even be amplified by social media platforms that create an environment where people constantly monitor other people’s lives. This can foster the fear of missing out on achievements, events, and opportunities that we see others experiencing.?
The constant stream of updates and notifications intensifies the fear, compelling individuals to stay connected at all times. In fact, statistics hold that teens check social media notifications 498 times a day, and that’s FOMO for you. FOMO often leads people to make impulsive choices to avoid missing out on perceived opportunities or experiences, and this can have important applications in the world of sales.?
Scarcity principles in sales
The scarcity principle stipulates that if a product is scarce or hard to find, its price should rise until there's a balance between supply and demand. Simply put, anything in low supply should be considered more valuable and sold at a higher price. There are three categories of scarcity:
Sales reps can use scarcity to make people eager to purchase a particular product. And when prospects feel like they might miss out, they're more likely to buy quickly, which helps sell more products.
Using FOMO in sales
Sales reps can better exploit FOMO through tactics like limited-time deals, flash sales, and limited-quantity offers. Such tactics create a sense of urgency that encourages customers to buy specific products before someone else snatches them or time runs out.?
If your sales reps are facing too many objections or obstacles, try positioning your products to suggest that they are exclusive to only a select few. Start by giving certain people VIP access to specific products or launching invitation-only events. This sense of exclusivity will make your products more attractive and encourage FOMO in your customers.
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Your company can also leverage social proof, such as customer reviews or celebrity endorsements, to create FOMO. Social proof will highlight the positive experiences that other people have with your products, making them more attractive to others who might fear missing out on the same experiences.
Lastly, to get the most out of FOMO, make urgency and exclusivity part and parcel of your email sales campaigns. Load your email subject lines and body copy with time-sensitive words that spur urgency, such as hurry, quick, ending soon, and now. And, if possible, set strict deadlines for responding.
Common FOMO tactics
Most successful sales experts use the following tactics to inspire FOMO consumer behavior:
When consumers see a countdown timer beside a specific product, they presume it will run out soon. This creates a sense of urgency and encourages them to act before the clock stops ticking.
Would you like to nudge customers into buying your products sooner rather than later? Send them low-stock notifications saying that only a few are left. This creates a rush to buy before the product is sold out.
If you have a consumer website, you can use pop-ups and overlays to notify visitors of certain time-limited offers like discounted product prices. You can also take it one step further and show the increasing number of people who’ve already made purchases.
Imagine visitors to your website encountering snippets of reviews, videos, and social media posts from satisfied customers. This exposure to positive experiences can spark a fear of missing out, enticing them to try your products and join the community of happy customers.
Brands like Apple and Coca-Cola often put out limited edition products with the sole purpose of inspiring FOMO. When people see a product with limited supply, they will often want to buy it, especially if it’s something they believe others will covet.
Unlock the power of FOMO today.
In a world where everyone fears missing out, your sales team can harness the power of scarcity to propel your company to new heights. But you must be intimately familiar with crucial FOMO tactics, such as leveraging low-stock notifications, countdown timers, and popups, to get the most out of this proven strategy.
MetaGrowth can equip your team with the knowledge and expertise they need to master these techniques. Our comprehensive training and guidance can empower your sales team to implement FOMO strategies effectively to drive customer engagement and boost sales. Get in touch with us today to schedule a strategy session and find out how MetaGrowth can help take your sales to the next level.?