Scarcity marketing is a powerful strategy that taps into the consumer’s innate desire for limited resources. By creating a sense of scarcity, marketers can influence consumer behavior and drive sales. There are four different types of scarcity marketing campaigns and they can be effectively implemented to attract and engage customers.
Demand-related
Demand-related scarcity targets customers who seek social inclusion and conformity. By emphasizing high demand and popularity, marketers can leverage the power of social proof and word-of-mouth recommendations. Waitlists for popular products, places for a course, or seats at an event, pre-orders for products that are expected to be in high demand, labeling products or courses to show consumers which ones are most popular, and sending emails to remind consumers when a product is almost out of stock or comes back into stock are examples of demand-related scarcity tactics. Customers are more likely to desire resources that others value highly, leading to increased sales and engagement. Even in physical retail stores, customers tend to instinctively choose products that have less stock left on the shelf, further highlighting the influence of demand-related scarcity.
Time-related
In time-related scarcity campaigns, customers are presented with a limited time frame to make a purchase. This tactic leverages the psychology of loss aversion, where the fear of missing out outweighs the pleasure of acquiring a product or service. This type of campaign can be applied to any product or service and can be tailored to suit different audiences. Whether it’s a countdown timer on a website, a flash sale that only runs for 24 hours, or coupons with expiry dates to encourage repeat customers, time-related scarcity creates a sense of urgency and motivates customers to take action. Products or content that are only available for a short time are also effective strategies. However, it’s important to strike a balance and avoid overusing this tactic, as customers may become desensitized if they anticipate frequent campaigns.
Limited edition
Limited edition campaigns focus on creating unique versions of existing successful products or services. By adding a special twist marketers can capitalize on the allure of scarcity. They can do things like local editions of national or global products, bundling courses or services under a particular theme for a limited time or list of subscribers, or collaborations with online creators and influencers. Limited edition campaigns are extremely valuable as they evoke a sense of exclusivity and enable products or services to be sold at higher prices. By creating a perception that these offerings are rare and time-limited, marketers can generate excitement and anticipation among customers.
Supply-related
Supply-related scarcity marketing appeals to customers who seek uniqueness, exclusivity, and status. It aligns with the concept of conspicuous consumption, where people purchase goods to showcase their social capital. By offering limited supply or exclusive access marketers can tap into this desire for exclusivity. Different membership levels for communities, loyalty programs, VIP-only access to events, services, and products, and exclusive product drops, are examples of supply-related scarcity tactics. Beta access to content or services that are still in development, early-bird tickets, and waiting lists for popular products, can also create a sense of exclusivity. Additionally, implementing supply economics, where the price increases as more are purchasing the product, can further enhance the sense of urgency and exclusivity.