Your offer might not be converting because your prospects aren't buying fast enough.

To make your marketing profitable, you need to decrease the time for people to make decisions.

Scarcity and urgency are key to achieving this.

Urgency

Urgency is about making people feel they need to act quickly.

There are four common ways to create urgency:

  1. Group-Based Urgency: Use rolling cohorts to create a sense of immediate action. For instance, you might say, "Our next group starts on Monday, so let's get you in."
  2. Seasonal Urgency: Tie your promotions to seasons or events, like Valentine's Day or New Year's specials. This changes the flavor of urgency, making it feel authentic and timely.
  3. Promotion-Based Urgency: Change your offers monthly or quarterly, highlighting that specific bonuses or pricing are only available for a limited time.
  4. Exploding Opportunity: Present your offer as a time-sensitive opportunity that won't last forever.

Scarcity

Scarcity involves limiting the availability of your offer. Here are three ways to create scarcity:

  1. Limited Supply of Seats or Units: Define the actual number of spots or units you can handle and market that constraint. For example, if you only have capacity for 10 clients a month, make sure your prospects know that.
  2. Limited Supply of Bonuses: Offer bonuses that are available only to a certain number of customers. Physical products, like t-shirts or exclusive items, work well here.
  3. One-of-a-Kind Offers: Create exclusive, one-time offers that will never be available again. This could be a unique design or a limited edition product.

Implementing Scarcity and Urgency

For Services

  1. Limited Number of Clients: Clearly communicate how many clients you can handle. For instance, "We only have two spots left this month."
  2. Limited Number of Bonuses: Offer bonuses that are available only to a set number of customers, creating a sense of urgency to claim those bonuses.
  3. Exclusive Programs: Cap the number of participants in high-end programs and communicate this exclusivity to potential clients.

For Products

  1. Product Drops: Release limited-edition products or flavors that are available for a short period.
  2. Scarcity in Listings: Use strategies like Amazon's "Only X left in stock" to create urgency in product listings.

Real-World Examples

Chanel

Chanel only stocks one or two of each item in their stores and does not disclose what items each store will receive. This engineered scarcity makes each product feel unique and irreplaceable.

De Beers

De Beers controls 75% of the world's diamond supply and purposely limits the number of diamonds released to maintain high prices.

Conclusion

Using scarcity and urgency effectively can significantly increase your sales and conversions. By ethically leveraging these strategies, you can create a compelling reason for your prospects to act quickly, enhancing your cash conversion cycle and making your marketing more profitable.