Scarcity Marketing: 3 mistakes to avoid

The principle of scarcity marketing is simple: consumers are more willing to buy a product or service whose quantity or availability is limited.

Let’s imagine, for example, that your gym offers a particular class. If you limit the number of participants, it is natural that those interested will sign up faster, before they lose their place. Another example is having a promotion active for a certain period of time.

In other words, telling people that they might miss out on something special is a great motivator to action. The concept of scarcity can be very useful in the gym’s marketing strategy. There are, however, a few things that you should consider avoiding making mistakes that make your business look vulgar or unprofessional.

The concept of scarcity marketing

In the bestseller “Influence: The Psychology of Persuasion”, Dr Robert Cialdini describes 6 principles of persuasion: liking, authority, consistency and commitment, social proof, reciprocity and scarcity. As we mentioned earlier, scarcity is a great motivator to action. This happens because “we tend to like and want more the things that are rare or uncommon”. There is even a term that reflects this principle well: FOMO – fear of missing out. In other words, the fear of missing a great opportunity if we do not do something (sign up for a class, take advantage of a discount) urgently.

Scarcity marketing then exploits this instinctive action that people possess. On the other hand, honesty must be taken into account when using the scarcity principle. If the “limited offer” turns out to be unlimited, if you do too many discounts and promotions, if scarcity is used indiscriminately to get more clients, this will inevitably give a bad impression. The goal of scarcity is to reflect the value of a really special product or service, which nobody will want to miss out on.

Using scarcity in the gym’s marketing strategy is an interesting way to convey more value to the offer. Here are some examples:
• Discounts to new members for a limited time (for example, one year after registration);
• Limited product or service offers;
• Promotions at special times of the year;
• Limited registrations in events organised by the gym;
• Offer of one month’s membership for those who purchase the premium class package.

 

3 mistakes to avoid 

1. Doing too many promotions

Let’s imagine that you join a gym and it offers you a certain promotion (discount on registration, offer of an exclusive service, etc.). After 2 months, the gym does the same promotion again. Some time later, it does the same promotion again. This type of situation can seriously damage the reputation of the gym. After all, if the gym is so good, why the need to do promotions all the time?! This is the kind of thinking you want to avoid in the client’s mind. The scarcity principle should be used to add value through its sense of urgency. Overusing this type of strategy will make your communication repetitive and irrelevant. Instead of captivating people with a really unique and special offer, it will ultimately be “more of the same”.

2. Being overly insistent

Have you ever come across a salesperson who at all costs wanted to sell you a product or service? You probably have and, if you are like most people, you did not like it. Nothing loses a potential client’s interest faster than an overly aggressive sales message. The key to scarcity marketing is subtlety. Use assertive and enlightening language, letting the person make the decision for themselves. Rather than selling, convey the benefits and solutions of your offer.

 

3. Making exceptions

Scarcity marketing is a useful tool, but if you do not use it properly, it can have the opposite result. A very common mistake is to increase the promotion period. Let’s imagine, for example, that you run a discount campaign for registrations in the first two weeks of the year. If sales go well, you may consider taking that promotion to the end of the month, sounds logical, right? Unfortunately, it does not work that way. Extending a promotional period will lead to clients losing trust in your business because if you make exceptions, it means the limited offer or special promotion is not that special.

So here is the final tip: Before applying the scarcity principle, understand your audience very well. Understand what can motivate and impact them in a positive way. This will help you manage expectations and adjust the application of scarcity in future marketing campaigns.