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Korey McMahon By Korey McMahon • June 29, 2016

The Element of Scarcity: marketing scarcity tactics


marketing scarcity tactics, mcmahon marketing

INTRODUCTION:

Generating leads - both high in quantity and quality - is a marketers most important objective. A successful lead generation engine is what keeps the funnel full of sales prospects while you sleep. Surprisingly, only 1 in 10 marketers feel their lead generation campaigns are effective. What gives?

There can be a lot of moving parts in any lead generation campaign and often times it’s difficult to know which parts need fine tuning. Today, we will discuss: The Element of Scarcity.

The Element of Scarcity 

If you look at the principle of supply and demand, you’ll notice that when supply is limited, demand goes up. Scarcity has a psychological influence on us, making us want something even more if there isn’t enough to go around. Marketing scarcity tacticsare great because they create a fear of shortage, and thus a sense of urgency.

Limited Time Offers

Limited time offers are among the most popular in the scarcity category. Just think about your average car dealership. Practically every commercial is a limited time deal. “Get 0% financing before it’s gone!”

Limited Quantity Offers

When something is of limited quantity, it suddenly becomes more unique or exclusive. In some studies, limited quantity or supply offers have outperformed limited-time offers. Why? Because it’s hard to tell when an offer of limited quantity will suddenly become unavailable, while a time-based offer has a known end time. Limited quantity offers are great for not only getting people to say “yes” to your offer, but to avoid procrastination completely.

Limited Time and Limited Quantity

Groupon is the perfect example of using both tactics. All Groupon deals end within a certain time frame, and they limit the number of people who can buy a Groupon. That’s a powerful combination. The site also packages these scarcity tactics with discounting, which is another great value-add, especially for ecommerce businesses.


CONCLUSION:

Generating leads is critical to businesses. While there are many tactics, the use of scarcity is one that creates urgency.  How can your business use the element of scarcity? 

Are you interested in more tips and tricks to generating leads? CLICK HERE for the top 30 Tricks and Tips around! 

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