There are three ways to target customer using this principle:

So, how do you make such an offer?

1) Scarcity

When you look at the theory of supply and demand, you will see that when supply is limited, the demand increases. Scarcity has a psychological control on us, making us crave something even more if there isn’t enough to go around. Scarcity creates a fear of shortage and thus a sense of urgency.

There are three ways to target customer using this principle:

·        Limited Time Offers

The most popular in the scarcity category, it shows a shortage of time and practically every advertisement uses this to lure customers. For example, “Get 0% interest before it’s gone!”

·        Limited Quantity Offers

When something is offered in a limited quantity, it becomes unique or exclusive. In some studies, limited quantity offers have performed better than limited-time offers because you don’t know when an offer of limited quantity will become unavailable, whereas a time based offer has a known end time.

Personalized email

This is why when Google was launched it was so successful. Gmail.com addresses where in limited supply and you could only get one if you got an invitation. This created exclusivity and value.

Marketing Software

·        Limited Time and Limited Quantity

When an offer is available for a certain time and quantity both, it just becomes even more irresistible. Groupon is the great example of this. All the deals they offer end within a certain amount of time and there is a limit to how many people can buy them.

2) The Bandwagon Effect

It’s a normal tendency for humans to copy each other, even when they don’t realize it. So when we notice see that our social circle is doing one thing, we are also inclined to follow. This is why to make an offer more valuable you should show that other people are participating in it!

Proof in Numbers

Showing a ‘number’ can entice people in following blindly but just make sure your claims are not only true, but also believable.

For example, say “Join our webinar along with 40,000 other people who have signed up!”

Proof by Relevance

Another way to make this principle effective is by making the offer more relevant to your audience.

For example, if you have to encourage more people in the state of Texas to pay their bills on time, you could say:

“85% of people in Texas are paying their bills on time. Pay your now.”
 or
“85% of people living in your neighborhood of Dallas are paying their bills on time. Pay yours now.”

Both statements are relevant but people living in Dallas would be more probable to pay their bills as the second message is more relevant due to its specificity.

3) Timing and Popularity

After its launch, Google gave their email addresses to top influencers and bloggers, word spread and suddenly everyone wanted a Gmail address!

When something is buzz-worthy, it increases in demand. In such situations, you can design offers with “what’s hot.” And entice your customers.