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scarcity

Scarcity triggers urgency. When resources or opportunities are limited, people act faster.

By crafting genuine, time, or quantity limited offers and experience you can ignite Fear of Missing Out - or FOMO - that can drive engagement and conversation.

There are a number of type of scarcity you can consider:

  • Time limited:
    • Deadlines create a ‘now or never’ window.
    • Now you can do the usual - Enrol by X date, or get a deal by X date.
    • Most people know this technique however, and can be turned off by it.
    • It may just be better to just be honest. You have X window to do something or it closes. Give the customer a choice - it’s always better when it’s personal.
  • Quantity limited:
    • Limited slots or units heighten percieved exclusivity.
    • You may only have limited time.
    • You can only take so many at an event.
    • Quantity can limit time.
  • Criteria limited:
    • By limiting access for some reason to some cohorts, others may want to be part of it.
    • You create a level of exclusivity.
    • You might get more if you get in early.
    • Earlier sign ups access better terms etc.

There is also designing for REAL scarcity

  1. Define real limits:
    • Create real limits - on the available access and time you can provide.
    • Fabricated scarcity is the easiest sure way to erode trust. Don’t do it.
    • Scarcity also dictates price. If you’re product is scarce but desired, it’s dumb not to price it highly.
    • But scarce products that are not desireable, that are expensive - are unlikely to sell at all. So you need to build demand before you even consider that.
    • Sometimes the best way to start may simply be to start trialling a product and make it free. Here you can pitch access and scarcity. The early customers become the testimonals for later customers.
  2. Communicate terms clearly:
    • If scarcity is a tool you want to use, you have to be damn sure the criteria are clear and fair, otherwise you’ll end up with disputes.
    • You always have a right to refuse service, but it’s not great to upset potential customers with these techniques, particularly when starting out. You’ll just get bad feedback.
  3. Don’t oversell scarcity:
    • Scarcity should only really address real constraints.
    • The less you focus on it the better.
    • Mention it clearly, but don’t emphasise it.
    • If people think it’s a marketing tactic you’re cooked.
  4. Create exclusive perks:
    • Give additional benefits to early customers.
    • The reason for this - as they are what creates inertia in your business, and there are less customers to deal with initially. Respect this and be generous with your time.
    • Not only does it create good vibes with your customers, it also gives you ample opportunity to get real time feedback for action.
    • If you keep the interaction informal early, it’s also a good way to get connected in networks you may not be a part of.

Conclusion

Authentic scarcity of time, quantity or access - can create real urgency in the form of FOMO.

My recommendation would be not to overdo this. Make it pragmatic, feight, but clear.

This is not a great tactic when you’re first starting at. Starting out you may just want to service clients for free for feedback. If that works out well - they’ll be referring you.

If you have to sell a concept hard - it’s probably not a good business idea and you’ll know.