2 Genius Techniques To Create Demand For Your Product

featured%20image%20fba.png

There are many different marketing techniques that a marketer can use to drive sales. These different techniques allow marketers to hit different pain points and drive the customer forward in the sales process until the sale is made.

To be the best marketer possible, you need to have a clear understanding of the most powerful and effective marketing techniques—and then you need to put them into action.

One time-tested and super effective technique that most marketers use is scarcity marketing.

What Is Scarcity Marketing?

img1.png

Have you ever heard the expression, “For a limited time only!”

How about, “This sale ends soon…?”

If so, you have experienced scarcity marketing.

Scarcity marketing is a marketing strategy that either involves real scarcity or the appearance of scarcity to drive sales.

 While this is a simple concept—and you’ve undoubtably been exposed to it—why is it that scarcity marketing works?

There are a few different reasons why people feel the need to purchase an item once they find out that it’s scarce. Here are the top three:

1. Exclusivity

There is something about owning something rare that people absolutely love.

Whether it's a limited edition album cover or a diamond ring, people want to know they own something that very few other people own. This makes the object special—even if, in reality, there’s no added worth to the item.

When people see scarcity in the form of a “limited edition” or “rare” item, they'll be more likely to buy it to know they're in a select group of people that own that item.

2. Impulse Purchasing

There may be a product that someone has been meaning to purchase, or that interests them when they see it. If this item becomes scarce, or has a limited-time sales price, that customer will be much more likely to make an impulse purchase.

Scarcity helps to convince people that are on the fence to purchase something that they may not have otherwise purchased. It also creates a need that wasn’t there before that leads to an impulse buy.

3. Fear Of Missing Out

Nobody wants to be the person that missed the boat on buying something that is scarce!

Think about a time in which something you really wanted was on sale—but you missed the sale by a day or two! Then you had to either pay full price or wait until the product was on sale again.

Scarcity plays with this emotion.

The fear of missing out on an opportunity (like a sale or a rare product) can help to drive someone to make a purchase they may have otherwise waited for, or not made at all.

Now that you understand what scarcity marketing is and why people respond to it, let’s get to two popular scarcity marketing techniques.

(Note: Want to learn more about eCom? Check out our FREE course, eCom Millionaire 101, inside of #LurnNation today.)

1. Time-Based Scarcity

img2.png

The first scarcity marketing technique you’ll want to make sure you're using is time-based scarcity.

This model involves only having a certain amount of time to make a purchase before something is taken away. This may be a special price, bonus item or even the product entirely!

Expiration Dates

For time-based scarcity, you’ll need to make sure there's some form of expiration date to actually create the scarcity with. This expiration date may be a certain amount of hours or date.

If you're giving your customers a certain number of hours before the product becomes unavailable or the sale ends, add a countdown timer to really drive home the scarcity.

If you have a sale that ends on a certain day, make sure your customers are well aware of the deadline—and that the deadline is about to expire!

Limited-Time Products

One version of scarcity that you see (particularly online) is limited-time products. These products are only being sold for a certain period of time and then are not sold again.

This isn’t the same as a limited-supply, which we'll get to in a moment.

Instead, the products are only being sold for a certain window of time.

Consider t-shirt websites that have a design available for 24 hours. Once the 24 hours are up, that design is gone forever.

2. Supply-Based Scarcity

img3.png

The second scarcity marketing technique that you’ll want to make sure to incorporate into your marketing efforts is supply-based scarcity.

 This scarcity technique involves limiting the supply of a product—whether it’s to drive sales or because you actually only have so much of a product left.

Limited Supply

Often times, scarcity is created by only having a certain number of units in total.

On Record Store Day, many bands will release a special album or a variant cover that literally only has a certain number of units. Once those units are sold, that’s it!

 This drives a significant amount of traffic and allows the seller to charge more than they would normally get for a specific product.

Limited Stock

There are some products that are certain to sell out. Even if the product can eventually be purchased and resold again—at least initially—there's a limited stock.

Consider new video game consoles. Often times stores will literally run out of stock—creating scarcity.

If you have a limited stock, make sure your customers know! That way, you can drive more sales through scarcity.

Fire Sale

Another form of supply-based scarcity is a fire sale.

This is when a company is trying to get rid of a product, so they decide to put it on sale until all of the units are cleared out.

Fire sales allow companies to get rid of products that aren’t selling well, while also making them more appealing by announcing that those products will no longer be available.

If you have a product that is limited, or if you simply want to see a boost in sales, make sure to leverage the power of scarcity marketing.

Not only will you boost your sales, but you will also be able to get rid of any products that aren’t selling well, and sell limited-edition versions of products for a higher price point.

How Will You Create Demand For Your Product?

img4.png

Unfortunately, not every product creates demand for itself. For the most part, entrepreneurs have to go out there and create demand themselves. 

These two scarcity marketing techniques are just two of the options you have in front of your for creating demand for your product. They're two easy ways to get started. Once you've mastered these two techniques, you can move on to a third and then a fourth. 

Just choose one today to implement and get after it.

(Note: Want to learn more about eCom? Check out our FREE course, eCom Millionaire 101, inside of #LurnNation today.)