Why You Should Use Urgency And Scarcity In Marketing To Drive Conversions
Using urgency and scarcity in marketing will help to boost your store conversion rate, hence skyrocket revenue to the maximum if used correctly and designed properly.
People buy with emotion and justify their purchases with logic. Scarcity takes advantage of supply and urgency leverages on-demand. The contributing factor for scarcity ignites the very powerful emotion of not wanting to miss out and it provides the logic that says, “I have to decide soon if I want this deal.” While for urgency, people are attracted towards the products that are extremely popular or highly demanded.
Shopping may not be the most important thing in a person’s life. But with urgency and scarcity, you can make the customers feel and act as though it is.
The combination of urgency and scarcity in marketing is what we will explore more today, with the hope of sharing helpful and real-life methods that you can immediately set up for your online store and drive more conversions.
Why are urgency and scarcity important in e-commerce?
In the digital era, customer journeys are very complicated. Therefore, applying the means of urgency and scarcity will compel the customers to act instantly. Sometimes, people wait for too long before they make a decision or take any action. They think too much and slightly or do not respond to your call-to-action.
Raising the urgency and scarcity level will tell your customers that it has to be done within a second or else they will lose the opportunity.
Therefore, by using this trick on your landing pages and online store, you can easily make your visitors do what you want them to do.
Ways to drive conversions with urgency and scarcity in marketing
Set the time-based deadlines
If you set the word “limit” it often gets more scarce. Therefore, setting a deadline on your sales and promotion to make it more valuable.
If no deadlines are given on product sales and promotions then customers will add the items to the cart to buy “later” as the sale is not special. And that “later” never comes. Maybe they will forget or prefer to buy something else.
And when there is a deadline, time becomes urgent. Therefore, your customers see the sales as a limited-time option and they quickly jump on it to take advantage.
In this way it’s not the item that is valuable, it’s you who made it valuable by just limiting the time. Using words like “On this date, the deal expires. The sale ends…”
Limited supply for products
When something is scarce, it’s often perceived as more valuable. So, these can be very helpful tactics if applied smartly with your store.
You just have to show the limited stock availability of the product and it will create a sense of FOMO (fear of missing out) in your customer’s mind.
If you can create a situation where quantity is limited, use that scarcity to your advantage. Creating urgency with statements like, “Only 9 items left.” etc.
Use right words
It’s a small but powerful thing to boost the sales of your e-commerce products. You should use the right urgency words that trigger your customers’ minds at the first instance.
For example, use words like:
Last But Not Least
Always use these types of powerful words that will catch your customer’s attention immediately.
Host a flash sale
“A flash sale is defined as sales, promotion, and discount offers given by e-commerce stores for a very short time.”
Flash sale just flashes directly into the eyes of your visitors forcing them to avail the offer. Urgency and scarcity mixed made a flash sale.
It can be categorized into three methods:
Discount: you should offer, exclusive
Time Limit: it is much shorter than any other online store sale.
Limited selection: only applied to selected items
To run this sale you should focus on all three categories.
- This will increase your sale during the slow season
- Target abandoned carts customers
- Don’t overdo it
- Make return policy clear
Add a countdown timer
“Countdown” the duration that leads to a particular event. In the e-commerce market, the countdown timer is an excellent way to drive immense conversion and customers to your store.
The countdown timer implements the duration in which the sale will end. This sale could be anything – maybe free delivery, discounted price, or anything.
These urgency marketing tactics motivate your customer to purchase the product before time or stock runs out. You can use the countdown timer on any specific page, collection pages, homepage, product page
Note: If you will always use a timer to trigger customers, they will realize there are being tricked and the trust will face a major jolt
Choose bright colors
Every online store uses a certain color to create a sense of urgency and scarcity. A/B testing by Hubspot found that bright colors such as red, yellow, and orange tend to capture more attention than cold colors like green or blue.
Therefore, always use red text, to call to action buttons. The red color will create a sense of excitement, whereas yellow gives you pride and orange security.
Highlight increased price after-sale
The price strategy with urgency and scarcity will surely benefit you. Highlight the increased cost after the “offer” ends will create fear in your customers to buy the product right now.
Use customers real-time actions as social proof
Showing the real-time actions of your other customers is a powerful marketing tactic to create urgency and scarcity to purchase.
For instance: How many customers are buying your products, or how many people are visiting your store.
As we know, evidence is a great way to gain trust. So, whether it is reel or real life we have to give proof for everything.
Other implementation of urgency and scarcity in marketing on your online store
- Use pop-ups to remind customers about offers
- Run a “coming soon” sale.
- Use email marketings for reminding customers of “Last chance”
- Make it personalized
- Referring rewards for the customers
- Free shipping for the limited time period
You should have a reason for urgency and scarcity in your marketing
Don’t just pick a random day. Don’t make up limited stocks. People eventually see through that. It’s like the “forever sale” that some stores use — if it’s always on sale, then it’s never on sale. That’s just the original price.
Here are a few reasons to create urgency and scarcity:
- You have limited capacity: This works great for B2B, coaching, and service niches. You can only handle a certain number of new customers.
- Your product is running out.: The season is changing. Demand was higher than expected. Let customers know what’s happening.
- The expiration date is approaching: You have perishable items and need to clear your inventory before it goes to waste.
- Holiday sale: Certain days happen naturally. You have to buy a gift before Valentine’s Day. Like Christmas, NewYear…
The more convincing and understandable your reason, the more people will give you the benefit of the doubt.
As an online store owner, you do everything to make your store successful. Urgency and scarcity help to push your customers to take quick action.
It strikes at their fear of missing out, and by giving them all social proofs. There are lots of ways to create urgency and scarcity in marketing. You just need to change the way you give offers.
By implementing them in your online store, you will experience a huge increase in your sales and revenue.
For more tips on improving your store, check out our other articles here on Autoketing.
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