|
The Scarcity Principle: Playing Hard to Get!
By Chris Croner, Ph.D., Clinical Psychology
Article Date: August 28, 2006
Has this ever happened to you? You find a great looking jacket at
your favorite clothing store. Although you don't need a jacket,
you can't help thinking that this would look great on you. Also,
there's only one left in your size. You are undecided about
whether to buy. So, you begin browsing a nearby shelf and think
it over. Meanwhile, you notice another customer looking the
jackets over -- and they are clearly interested in the same one.
Suddenly, you feel like you have to have that jacket -- now! Its attractiveness has increased because it may soon be unavailable.
This
situation illustrates one of the most powerful instincts that causes
customers to buy the scarcity principal. Social psychologist
Robert Cialdini describes this principle as the phenomenon whereby
things seem more valuable to us when their availability is
limited.* Crafty advertisers use this principle when they claim
that "supplies are limited" and this is your "last chance" to take advantage of their great sale pricing.
The scarcity principle works so well because we enjoy acquiring and possessing things that are rare. The good news is that you can use the scarcity principle to improve your sales as well!
In
this week's article, we will review several ways to use the customer's
love of scarcity to your advantage. Before we begin, a note of
caution: do not use this principle unethically, or to put added
pressure on your customers to close -- that kind of dishonest behavior
will be transparent, and weaken your customer relationship.
Now, here are three of the most effective uses of scarcity in sales.
- Create a limited supply. If you have an item that is difficult to sell, have an "invitation only" sale
-- perhaps only to certain customers. Let them know that there is
a limited supply of the item, and that you will continue selling them
to selected customers until your supply runs out.
- Give away "inside information."
Cialdini states that we will find a piece of information more
persuasive if we think we cannot hear it elsewhere. To support
this theory, one of Cialdini's students conducted an experiment.
His salespeople called buyers for supermarkets or retail food chains,
and used one of three techniques:
Group 1 - heard a standard sales presentation for imported beef, and was asked for the order.
Group 2 - heard the standard pitch, plus information that the supply of beef would be low in the coming months.
Group 3 - heard the standard presentation with the inside information. However, they also heard that the information came from exclusive contacts of the company. According to Cialdini, this situation created a scarcity "double whammy." This group bought six times more beef that Group 1.
The
lesson here is that salespeople should consider what industry
information they can uniquely provide their customers. This
should be information not available elsewhere that would effect the
buying decision, and make the customer feel special. For example,
you might say, "Our competitors don't know this, but...."
3. Tighten Your Schedule. In his book, The Psychology of Persuasion, Kevin
Hogan notes that busy salespeople can use their schedules to their
advantage.** Because they are so busy running to meetings with
customers, they naturally have limited availability. So they have
to refuse the dates the customer proposes, and suggest
alternatives. When a new prospect agrees to a meeting, they have
to say something like:
"Well
Bill, I'm booked solid until next week, so Monday and Thursday are both
out. Next Wednesday, I have 1:30 and 4 PM open. After that,
my next opportunity is next Friday, when I have 9:30 and 4:30 open."
This limited availability communicates to the prospect that you are in demand! Essentially, you become scarce, and the prospect figures that you
must have some special quality that makes you in demand. They
will be more likely to take the first opportunity you present (maybe
even moving their schedule around a bit) to see you. So
presenting limited opportunities can work to your advantage.
Start using these three techniques this week, and notice how limiting supply increases your customers' demand.
* Cialdini, R.B. (1993). Influence: The Psychology of Persuasion. New York: William Morrow.
**Hogan K. (1996). The Psychology of Persuasion: How to persuade others to your way of thinking. Gretna, Louisiana: Pelican
Return to archive
|
|
