So far, in the 7 Principles of Persuasion series, we’ve covered how we can give something to get something in return using the Reciprocity rule. We’ve learned just how motivated we are when we make a public statement and when we apply the rule of Commitment and Consistency. Now, this blog will take a deep dive into Principle number 3, Scarcity.
Scarcity is the one principle that gets under your skin and eats at our human need to have something in our possession when we know that it’s either in short supply or in high demand. It’s a very clever tactic, and when you read this blog, you’ll most likely realise instances where you have fallen at the feet of marketing experts.
What is Scarcity?
Scarcity increases the value of an item based on our perception. When there is less of something, the more we tend to want it. The more we want it, the more valuable it becomes.
How does Scarcity work?
Generally, we all want the things we can’t have. If we know something we want is hard to get, in short supply or rare, our motivation to do something towards getting it increases. For instance, if I wanted to be a millionaire,, I would hand money over to Tattersalls each week because their advertising tells me I can win money.
Examples of Scarcity.
What does your mind do when it sees the words Limited Edition? There is something ever so appealing in owning that Limited Edition thing. From the car, a Mr Winston hoodie, right through to a set of glass tumblers at Maccas, we’ll go out of our way to get it.
When something is rare, there is an urgency to have it, and sometimes at whatever cost.
Take my dad, for instance. He’s a mad collector of vintage lawnmowers…. Yep, lawnmowers. He has paid ridiculous amounts of money for lawnmowers as old as him (he’s in his 70s). And if you are like me, you may be asking how and why could old lawnmowers be worth ANY money. (Sorry if I just offended any lawnmower collectors). It’s because they’re both rare and scarce. Over the years, these machines were tossed out as the new beaut version replaced the old. EXCEPT for the people who held onto them and were probably laughed at and called a hoarder. Now, who’s laughing?
Scarcity can be used for any product or service.
Here’s a time when I’ve experienced Scarcity.
When my girls were little, they were obsessed with Shopkins. For those who haven’t heard of them, toymaker Moose Toys launched these brightly coloured, tiny plastic grocery item figurines in 2014. They were marketed to children aged between 4 to 10 years of age. Unbeknown to me, I was sucked into a cleverly marketed scarcity craze.
For almost two years, I bought bags upon bags of Shopkins for my girls.
I became intrigued as I watched my girls excitedly rip Shopkins bags open, and would say things like, “Ahh, I got a rare one, Mum!”. This prompted me to research what was going on. It seemed my kids were getting caught up in something.
I discovered there were different types of Shopkins; common (heaps of the same), uncommon (less of), rare (hard to get), ultra-rare (even harder to get) and the big one, limited-edition (very few made).
One day, while shopping at the Caribbean Markets, my daughter ripped open the Shopkins bag that she’d begged me for, and inside was Chelsea Charm, a LIMITED-EDITION Shopkin! I’ll never forget the screams and hugs of joy exchanged between my kids and their cousins.
I soon realised their euphoria when we sold the limited-edition Chelsea Charm Shopkin on e-bay to the highest bidder in the US for a whopping $400 (AUD). How could a piece of small plastic be worth so much money?
I’ll explain.
For those of us either running a business or working in a marketing role, we should all take note of what this innovative business did. Moose Toys, the makers of Shopkins, effectively applied the principle of persuasion number 3, Scarcity, to push their product out in mass volumes around the globe. It was a sensation that quickly gained momentum. Even adults were filming themselves opening bags on YouTube with millions watching on. Literally out of nothing more than an idea, Moose Toys created a hype and a very profitable one at it.
How can you use Scarcity in your marketing strategy?
The key is to be looking for ways that you can introduce Scarcity. For example, maybe your products become obsolete as new editions are released.
Here are some simple tips on how you can drive your customers to act now:
- Create a sense of urgency – Have you ever been on a hotel booking site and seen the words only 3 rooms left? This is the business telling you to book it or miss out,
- FOMO –There are very few things as motivating as the Fear Of Missing Out. It’s such a powerful way to get to your people. Choosing the right words like Only 2 left, Sale ends at 3 pm, or Don’t miss out will drive your audience to act now.
- Create limited editions – Maybe it’s a Christmas offer or the autumn range. Entice people to be part of something unique.
Finally
When marketing, you have the ability to create Scarcity. Much of the Scarcity is in the wording, and it’s based on perception. Use it across your social media or even your websites, to create the sense of urgency or uniqueness about your product.
If you need help with a Marketing strategy Chrissy and our team CLS team can help you build Scarcity into your marketing. Book a strategy call with the boss lady and let us assist you.