Digital marketing plays a big role in helping e-Businesses get themselves on the map. If you look a little closer, you’ll realize that a good part of marketing bases itself on one fundamental concept – Psychology.
Marketers play on the emotions of customers and get them to feel for a product to increase sales. In this article, we are going to look at a branch of social psychology that’s used commonly in WooCommerce – Perceived Scarcity.
The Theory behind ‘Won’t be around for long!’
Scarcity means the desire in humans for what they don’t have over what they possess in abundance. According to some studies, people think that if a product is low in stock, then it must be popular and good. The thought behind buying a limited edition item means that only a few people own it. This makes it ‘exclusive’.
The basic principle used in WooCommerce is that if an item is displayed as ‘nowhere else in the market’ or ‘only for a limited time’, it will motivate visitors to make a purchase. It is a powerful technique for converting visitors into buyers. This is done by introducing limited edition items.
“It speaks to our internal thrill-seeker”
As human beings, there is a buyer in all of us. As a buyer, which words would generate more excitement – ‘Clearance Sale’ and ‘Marked-down Products’ or ‘Half Off for a Day’ and ‘Additional 20% off from 12 AM to 12 PM’?
There is a general perceived negativity around the words ‘clearance’ or ‘marked down’ because it is assumed as a way of getting all the old, un-bought stock out to make way for the new one.
But if you say that a product will go out of stock soon, its appeal and desirability go up. This helps it sell even when it’s reintroduced.
For example, a nail polish invented by a world-famous pop star is launched, and she’s selling only 500 bottles online. There will be a frenzy of fans to buy it. Then, when it is re-launched later on, those who missed out on it the first time will certainly be buying a bottle.
But this isn’t just about nail polishes, we’ll have you know! Even for creating the ‘limited edition’ frenzy, marketers need to choose their timing and products right.
Let’s take a look.
Best Ways to use ‘Limited Edition’
Let’s take a look at when and how to create limited edition sales for products.
You can go with month and colour (July and Yellow), print of the month (May and Stripes), outfit of the month (30% off on all jackets in December) and so on.
This works much better than saying ‘Winter Clearance Sale’.
Many online stores run limited period sales for exclusive clothes or accessories at the start of a season to create a buzz around them.
Keeping a timed discount on popular holiday gifts can get sales up manifold.
For example, “Halloween costumes 50% off only today!” is a great way to get more people to buy costumes today.
Displaying a timer with a countdown instills a sense of urgency in people. Racing to buy a product before time provides some thrill, and thus increases sales.
Since so much is being said about the concept of limited edition and the thrill that it invokes in buyers, you must have guessed that it has a bunch of advantages for WooCommerce stores. Delve a little deeper, shall we?
Benefits of Limited Edition Selling
#1 Boosting sales during holidays
When festivals are around the corner, people go shopping. It’s a tradition that online sellers can cash upon. Using time limits for sales of various products is the best way to induce people to make a purchase quickly. This also makes them feel happy about getting a ‘better deal’.
#2 Market Hype
Take the example of the famous popstar’s nail polish. By selling just 500 bottles to start, she is creating a market buzz for her product. Limited edition products are immediately taken up by consumers. This is a great marketing gimmick.
#3 Brand rejuvenation
If your clothing brand has just invented a new and funky style of tops, you can market these as ‘limited edition’, ‘exclusive’ tops and urge users to ‘grab their favourite piece’ now. If marketed effectively, this can be a great way of getting rejuvenating your brand image.
You can get celebrity endorsements for your limited edition items. When a celebrity endorses a product that’s on the market for a limited time, there is an even greater demand for it. This can send your sales through the roof!
#5 Product placement
Adding a ‘limited edition’ tag to your products can give you the opportunity to place it in the market as an essential commodity that the buyer must have. The perceived value of the product goes up and so does its desirability.
#6 Customer engagement
Creating a scarcity factor around a product lets you engage with your customers in a new and different way. This technique should be used sparingly to be effective.
#7 Greater sales, shorter time
If you encourage customers to buy a product in the next 20 minutes for an extra 20% off, then they are more likely to buy it immediately. Buyers are always looking for a better deal, so putting them in a spot works to sell faster and more.
Adding limited edition items to your WooCommerce website is a certain way to boost sales. It basically means setting a time limit on a product sale and encouraging people to buy it within that time. Whichever way you choose to do it, this is an effective technique if used smartly and sparingly.