The Positive Influence of Scarcity on Customer Experience

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Top Takeaways:

• When an organization makes customers feel special by getting something that appears to be hard to get, they endear customers to the company and make them feel connected to the brand.
• Our brains are wired in a certain way to react to scarcity. Businesses can use this in a positive way to emphasize value and communicate how working with them through their products or services is in their customers’ best interest.
• Most people think of scarcity as FOMO(fear of missing out), but it is so much more than that. There are four types of scarcity:

1. Time-related scarcity – when products or services are available for only a set amount of time.
2. Supply-related scarcity – when a limited number of products are available or when companies want to create a feeling of exclusivity or uniqueness.
3. Demand-related scarcity – when customers are excited and want to make sure they can purchase a product before it is gone.
4. Limited edition – when there is a special or rare version of a product that customers love to collect.

• When companies create a scarcity mindset and communicate it well to their customers, it creates a sense of control where the customer feels they have the power to decide when and why they want to buy.
• When companies create a mindset of scarcity with products that customers enjoy (for example, limited edition sports or movie memorabilia), they show that they truly know their customers and how to engage with them.
• Plus, Shep and Mindy talk about how successful companies use the scarcity mindset to create amazing customer experiences. Tune in!

Quotes:

“Scarcity creates community. When done right, incorporating scarcity can help brands create loyalty, excitement, and bond with their customers.”

“Using scarcity to build community, strengthen customer relationships, and create fun and excitement around your business can be done without spending a dime depending on how you position your message.”

“Informing people about your product’s scarcity is not just about drawing them in. It’s about letting your customers know that they are important, and you want to keep them in the loop on what’s happening.”

About:

Mindy Weinstein is the author of The Power of Scarcity: Leveraging Urgency and Demand to Influence Customer Decisions. She is a marketing instructor at Grand Canyon University and a program leader for The Wharton School at the University of Pennsylvania and Columbia Business School.

Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio.

This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:

1. What is scarcity in consumer behavior?
2. Does scarcity have a positive effect on businesses?
3. What is the benefit of scarcity to the consumer?
4. How does scarcity impact customer relationships?
5. How does scarcity create a community for your customers?