Create Urgency: 5 Scarcity Tactics That Fuel Sales

Understanding the Psychology of Scarcity

How does a lipstick on a nearly empty shelf seem more covetable than one in a basket brimming with duplicates. That’s the odd thing about scarcity - our brains aren’t always rational about it, and the less we see of something, the more we want it. Implies That perhaps it goes back to ancient times when food and shelter weren’t guaranteed, and getting your hands on what you needed was as much about survival as it was about the thrill of the chase. Scarcity triggers an instinctual fear of missing out.

If we don’t act now, someone else will. Scarcity adds perceived value.

It makes us focus on what we stand to lose rather than what we stand to gain. This effect is so strong that researchers Daniel Kahneman and Amos Tversky even named it ‘loss aversion’ - the idea that we’re hardwired to avoid losses at all costs, even if there’s only a small chance of missing out. It also creates a sense of competition.

Suddenly everyone wants that one bag left or that limited shade in stock. The fewer there are, the higher their desirability - regardless of actual value or price. It seems scarcity appeals not just to our survival instincts but also to our competitive nature. And clever brands know this and use it all the time, especially with exclusivity marketing tactics such as product drops, collaborations, limited collections and even waitlists.

But be careful here, because humans don’t like to feel like they’ve been manipulated. For scarcity tactics to work effectively (and by effectively I mean ethically), they must come across as believable. If people sense anything fake or manipulative about your urgency triggers - you’ll lose trust and credibility instantly, which can do more harm than good for your business or brand reputation.

Exclusive Access: Creating a Sense of Privilege

Have you ever wanted something a bit more when it seemed like other people couldn’t have it. There’s some sort of primal thrill in being invited to the party most people don’t even know is probably happening. But then, if you make that club too exclusive, people stop caring because they can’t get in. That’s why exclusivity is a bit of an art form for marketers.

People, I think, generally like buying things they feel good about. Like belonging to a community or group that recognises their value as a customer. That’s what feels exclusive to them - not the idea that they’re better than everyone else, but that a brand sees them for who they are and values their decision to buy from them. So reward loyalty with meaningful points, select members for VIP events based on how well you know them as an individual, and give a few people a chance to get early access.

But then there’s the classic VVIP scam where clubs and brands make up these entire tiers of privilege for absolutely no reason except money. People see through those - anyone buying your VIP experience will only feel special if you actually make an effort. Like remembering their birthday with a thoughtful email or letting customers who spend £10,000 with you use their points for products instead of meaningless gift vouchers. I think there’s a lot more nuance to creating FOMO than making sure ‘everyone wants it’.

If your average audience finds your products affordable but somewhat aspirational, then it's best to create everyday exclusivity by showing off the perks of signing up to your loyalty program on social media. If you’re targeting ultra high net worth individuals who are fairly used to everything being exclusive, then ultra-exclusivity is probably the way to go.

Flash Sales: Harnessing the Thrill of the Chase

What is it about a sale that makes people go a little bit mad. It’s not always about the cost. Sort of. There’s something strange and intoxicating about having a limited amount of time to get something that others might not get to have.

This is why flash sales have become such a powerful marketing tool. Flash sales play with the idea of urgency. The basic premise is possibly simple: get this thing you want before the time runs out.

And there’s probably nothing as effective as a ticking clock to make you want to pull out your credit card and buy something new. But this goes deeper than simply wanting to save some money on a deal that you think is going away soon. For many people, flash sales also tap into their competitive instincts. When you’re faced with something you know other people want, but they can’t have, it makes it even more desirable for you.

Then, when you’re told there’s only so much time left to get it before it’s gone, it becomes almost impossible to resist buying it - even if you didn’t know that you wanted it in the first place. Some people say that these tactics are emotionally manipulative and maybe they are but I would say that customers can always choose not to participate if they don’t feel like it’s in their best interest. I think we should also give the consumer more credit for understanding exactly what’s happening during flash sales.

After all, most of us know by now that brands are offering these deals every few weeks - so maybe these aren’t technically as limited as they once were but nobody cares because we want them anyway. So I think as long as there is no real deception at play here - flash sales can be pretty useful for both consumers and brands.