How to Use Scarcity Marketing to Increase Demand for Your Product
Are you having a hard time getting people interested in your product? It may be because you're not using scarcity marketing.
Scarcity marketing is a technique that can be used to increase demand for your product by limiting its availability of it. For example, you could run out of products and then put up a sign that reads "limited quantity". This will create the impression that what you're selling is popular and many people want it, but can't get their hands on it.
What is scarcity marketing?
Scarcity marketing is a technique that can be used to increase demand for your product by limiting its availability of it.
Scarcity marketing comes from the theory of scarcity. The theory of scarcity is the basic idea that people want more of what is scarce and less of what is abundant. This theory can be applied to a variety of different situations, including the marketing of products. When you use scarcity marketing, you are creating a sense of urgency in your customers by making them think that they need to act fast or they will miss out on the opportunity.
Want to learn about other marketing tactics, read this blog!
What Marketing Tactics Should I Use?
What are the benefits of scarcity marketing?
The main benefit of using scarcity marketing is that it can help increase demand for your product. When people see that something is in short supply, they will often be more inclined to buy it before it's gone. Additionally, scarcity marketing can help create a sense of urgency, which can prompt people to take action sooner rather than later. Companies big and small can take advantage of this marketing technique.
Another reason to consider using scarcity marketing is that it can be a great way to create a sense of exclusivity for your products. When customers feel like they are getting something that not many other people have access to, they will often be more likely to buy it.
Not only does scarcity marketing help increase demand for your product but it is also relatively cost effective.
Examples of successful companies that use scarcity marketing
Etsy
Etsy is a website that specializes in handmade or vintage items and supplies. The company was founded in 2005 and has since grown to include over 30 million items from over 1.5 million sellers.
One of the things that makes Etsy so successful is their use of scarcity marketing. Etsy regularly runs out of products, which creates a sense of urgency for their customers. Look at the example above for a golden sun necklace. When a potential customer clicks on the listing they see "selling fast! only 6 left, and 9 people have it in their baskets". This creates a sense of urgency for the customer. If they don't put the necklace in their basket then they risk not being able to have it.
Louis Vuitton and Supreme
You'll often see the strategy of scarcity marketing in clothing brands. Especially when it comes to collaboration. A great example is Louis Vuitton x Supreme. These two luxury brands collaborated in 2017 and created a mashup of products. The limited-time collection was a huge success and fans of the brands would pay thousands of dollars in order to get their hands on the limited products.
McDonalds and the BTS Meal
In 2021 the biggest fast-food chain in the world collaborated with the extremely popular South Korean pop band BTS. The two groups collaborated to create a meal inspired by poplar Mcdonald's south Korea recipes. Diners were served 10 chicken nuggets, medium fries, medium coke and sweet chilli and cajun dipping sauces plus limited edition BTS packaging
Tips for implementing scarcity marketing in your own business
When it comes to implementing scarcity marketing in your own business, there are a few key things to keep in mind.
First, always make sure you have an adequate inventory of products to meet customer demand. If you run out of products, you'll lose potential sales and customers. Additionally, it's important to set a limit on the amount of time you'll offer the product for sale. Once the time limit is up, the product will no longer be available. This will create a sense of urgency for customers and prompt them to buy it before it's too late. Finally, make sure you're regularly monitoring inventory levels so you can adjust as needed.
Scarcity Marketing is a technique to increase demand by limiting the availability of a product. This will create the impression that what you're selling is popular and many people want it, but can't get their hands on it. Businesses big and small should take advantage of this strategy
