Using Scarcity to Drive Your Customers to Convert Faster
Howdy chat about fans. And welcome back in this lecture, we're gonna talk about the principle of scarcity. An age old principle of persuasion that still works wonders when used correctly, simply put the scarcity rule states that we assign value to things based on how rare they are based on how hard they are to get and how likely we are to potentially miss out on the opportunity to get them and to have them something in short supply or something that might not be around for much longer is therefore more coveted and more desired and considered more valuable. It's a very, very potent principle of persuasion and without going into lots of different studies and the research that has been done around this concept, You could trust me and you could trust the research that this is something which is very powerful and very true and works very well. People are motivated tremendously by the fear of losing something more so they are than the than the gains of getting something. And this is importan...
t to know because this is going to help you phrase and word your messages around scarcity. Um, in a study that was done, I know I told you I won't go into any studies, but here we are. People were much more likely to agree to pay for home insulation when the marketing messages were phrased around what they're going to lose by having insufficient insulation more than they were. And they were less willing to actually go and insulate their homes when the marketing messages were phrased in a positive way by what they had to gain by getting the proper insulation. So remember that concept when it comes to phrasing your own marketing messages and creating scarcity and senses of urgency throughout your bots, scarcity is a widespread tactic that's used by almost every successful brand, especially e commerce companies right? You see um amazon and other e commerce brands always show only a few items left or a specific number of items left, limited time promotions. And those are the two ways that scarcity usually takes form in the form of limited quantities. There's only a few left of something making a person feel that if they don't act quickly there, you know we're not gonna have any more left for you to have. Um it could also be used successfully in the form of a promotion that has a deadline, right? So we might not necessarily be conveying that there's a limited quantity of this item but we are conveying that this special promotion or this sale or this special feature will only be available for a certain amount of time. And when you, when you can combine both of those together, you have something very, very powerful, scarcity is much more powerful and it works much better when it can be contrasted to recent abundance As opposed to just conveying that this was always scarce. So you want to say we had, which is why Amazon doesn't just say there's only 10 left. It shows a slider, right? It shows a long line or a bar and a tiny little sliver of yellow or green. That indicates this is how much amount of the total we started with our left right and this is done on purpose. This is done because they know that when you contrast scarcity with prior abundance it's a much more powerful and potent motivational factor um, and just to take this one step further. This is this is especially true when the scarcity is a result of social demand as opposed to there being some mistake with inventory or quantities or something like that. So for example when when an e commerce brand conveys that, not only do you have limited quantities remaining but the limited quantities used to be a lot of quantity and the reason why there's limited quantity that remains because people like you have bought it, wow, you've combined three different persuasion techniques over there and that's how you're going to be successful with marketing and you could create chatbots that convey these things extremely powerfully and extremely eloquently and extremely effectively. So just take a look at this quick example um, I wrote this chatbots as an example for using scarcity in boat design. It says, hey Isaac jake here from the oxygen store. Just a friendly reminder that our annual sales event is ending tomorrow morning. Okay, so there you have scarcity in the form of a deadline, the sale is over tomorrow morning, we have a handful of portable oxygen concentrators left at up to 70% off retail. Okay, So that's the second component of scarcity. Where not only do we have a deadline on this promotion is only a few items that remain at the sale price, but since the sale has been running for two weeks now, our supply is extremely limited. This is the contrast principle, right? The there was an abundance of time that the sale was running and now it's almost done. So the abundant, the contrast to the abundant contrast doesn't only have to be with regard to quantity of product left. It can also be with regards to how long the sale has been running. Okay, so we have three different key components here. Here's the 4th, 325 other athletes gearing up to the 2019 ski season have purchased new units on sale during the past week. So now we're using this concept of social proof where people like you because obviously we would be now targeting athletes and if we can, if we have enough data, will be targeting skiers. Um, people like you have been buying over the last week. And the fourth concept is that the reason for that scarcity is social demand. We didn't just make a mistake or we don't just have to get rid of them because they're they're they're bad units or their defects or their defects or they're scratch and dent other, the reason why they're scarce now and they used to be abundant is because people like you have been buying them. It's a very, very powerful message. And you see that a message like this has so much thought and so much analysis that goes into it. Here's a link to our remaining inventory and there's a link to the final sale. So if this was going to really be fleshed out as a full bot, we would start off with a question. We would use some other principles. But here's a very powerfully concise message of scarcity and urgency that brings in 34 really solid persuasive concepts and a message like this will work. Cause I've seen messages like this, work for our clients over and over and over again. Just a couple different ideas here in the bullet points promote limited quantities of popular items. You could send messenger bots out before and during the sale of promotion so you could gear people up psych people up through messenger bots and and and chat blasts before the promotion and then have a drip campaign running throughout the course of the promotion. Another thing to reiterate, use be concrete and be objective. Use actual numbers. Use dates, urgency is created when the urgency is concrete and objective. So don't just say our promotion is ending soon. Like, and if you look at my message, if we say that the promotion is ending tomorrow morning, 325 other athletes bought from us in the past week be concrete be objective. Those, it just works much better. Um, create offers with deadlines, right? So that's another a lot of brands sometimes forget about that part. They just talk about there's only a few left of the chance of missing a deal is very, very powerful. It's just as powerful as the chance of missing out once these quantities are gone. Um, and then again, very important, anchor that sense of urgency to social demand. Like I wrote in this message over here on the right when when the potential prospect realizes or or perceives that the reason why things are scarce. Now, the reason why quantities are limited is because Other people like me are buying them. It's much more powerful and much more effective. Um, and then contrast with prior abundance. Just a couple different examples. One example is we had pairs of headphones in stock and now we're down to our last 35 contrasting with abundance. We had seats reserved for the seminar and now we have only three spots left contrast with abundance. This year has been going on for three weeks. And now we're in our final day contrast with abundance. So these are just different ways that you could use scarcity in your boat design And I want you now before the next lecture to take a pen and paper or type it out put together 2356 scarcity should come easy whether you're a service business. If you're in the e commerce, I admit it's easier, but it's not impossible to do in a service business. It could be with event registrations, webinar seats, um, limited number of promotional coupons are offering for pressure, washing decks, whatever it may be if you're creative enough, I guarantee you, you could come up with really good effective ways to um, include a sense of urgency and create and manufacture a sense of urgency in your chat bot messages using these principles of scarcity contrasting with abundance. And most importantly, don't forget the reason for the scarcity should be due to social demand. Um, I hope you're enjoying the stuff. I hope you're learning something from it. I hope you're coming up with some great ideas. Um, the next lecture I'm excited about, we're gonna talk about the fog behavioral model, It's gonna be a whiteboard video, Maybe a couple of, maybe a little bit of a slide to begin with. But enough introduction to the next lecture. I'll see you there in a few seconds, cheers for now.