These 2 phrases have just 1 word which makes a huge difference on your growth:
“Your marketing doesn’t just need to give your customers a reason to buy, your marketing needs to give your customers a reason to buy NOW!”
How many times you walked down the grocery aisle and told yourself maybe later. Alot of things which you want, we tell ourselves we will get it later. Now imagine you walk down the same grocery aisle and you see a sale which has limited quantities and time offer. Only 30 pieces are remaining and offer is only valid today. Now your maybe can change to I want that!!
Look at this example from a brand called Supreme. You won’t believe, what this brand has been able to achieve. They have a cult following and with only 11 stores worldwide they are valued at 1 Billion $.
This is crazy right….their cult following reminds people of michael jordon or nike limited release days in 1990’s, when people use to line up outside stores to buy them and then when gaming companies use to launch games on Xbox or Nintendo there use to be lineups on Best Buy and other electronic stores. Supreme works on the principal of Exclusivity and Scarcity. They produce just limited number of products.
Crazy stuff is there are websites which re-sell Supreme merchandise for like 400 or 600% original price…if a hoodie costed $300 it’s reselling for $1600….holy!!
Psychology and Marketing
Another study conducted by Stephen Worchel offered subject two nearly identical jars of cookies. The only difference was that one jar had ten cookies, while the other jar only had two cookies. When asked which jar they preferred, participants actually preferred the jar with only two cookies in it! That’s because psychologically people assume that if there is less of something, it must be in higher demand. Therefore, it must be of higher value.
Travel Websites and Clubs
Also, booking.com or Expedia have applied this really well on their websites. They often have this phrase “Lock in this great price while you still can” Amazon will often run sales which say “One day sale” and only “5 left in stock”. And scarcity and exclusivity is tied up with how we see our “status”
So, do you know why do we have a front lawn. It was first originated in Britian and it basically meant that, family who has the front lawn they don’t need extra land in the back to gaze sheeps or cows and they can show off their status….and this happened in 16 or 1700’s American Express and other companies have things like Platinum club or supreme club members to make people feel exclusive. Airlines have done it that with business class as well, you can fly in that part of the plane not this part of the plane even though you both get there at the same time….Exclusivity!
Using It Effectively
Use scarcity and exclusivity in your marketing effectively, just make sure don’t use fake or artificial scarcity where your customers don’t trust you. But, take example from brands like Gucci, Supreme and Harvard….which has less seats and limited number of programs and students from across the world die to be part of….and it’s damn expensive!! Because it’s scarce and it’s super super exclusive.
Ali Salman is an online marketing strategist who have worked with Coca-Cola, Extreme Pita, Mucho Burrito, KIA, Honda and other Fortune 500 companies. Ali Salman now heads Rapid Boost Marketing - Canada's fastest growing search marketing agency. RBM clients include Fortune 500's and medium size businesses across North America. Ali as RBM CMO leads his team in building and managing quality, high-performing and cost-effective interactive campaigns and programs for our company's customers and partners. In his career, he has significantly improved campaign performance for large brands such as Government of Alberta, Liberal Party, Workopolis, Cathay Pacific, as well as medium to large retailers and high-tech B2B-enterprise niches.
Ali and his team develop online promotional concepts that spark viral growth through search and social media for RBM clients, devising strategies that use search engines and more to reach key demographic segments in the ways they're most likely to be receptive. Ali Salman also oversees corporate marketing initiatives for Rapid Boost Marketing, including strategic communications counsel, public and analyst relations and client education programming.