A great way to maximize your marketing budget is through the optimization of the customer conversion process. By optimizing your pages for improved conversion rates, you’re setting yourself up to extract the maximum ROI from your marketing investment, while simultaneously making it easier for your prospects to become customers.
Create Customer FOMO (Fear Of Missing Out)
Setting up some basic conversion rate optimization doesn’t have to be difficult or complicated. The concept of scarcity is still a viable way to motivate potential consumers to take action by creating a sense of urgency. Research confirms that when it comes to shoppers, the fear of missing out can have a powerful, positive effect on conversion rates. WhichTestWon recently conducted a Split Test which showed that when a countdown timer was placed on a product page, it converted almost 10% better than another variation of the product page without a countdown timer. Creating a sense of urgency amongst your “browsers” can help to create more “buyers” and fewer tire kickers who delay taking action on transacting.
The Consumer Buying Decision Process
Understanding the Consumer Buying Decision Process is essential in order to adapt your marketing strategy. While your objective isn’t to turn your website visitors into rabid shoppers, you do want to encourage people to act immediately, and that’s where scarcity comes in. You can introduce perceived scarcity to your Ecommerce store by creating a product or time shortage. Impulse purchases have a lower “consideration rate” because the consequences of making a bad decision are small. For example, “I’m hungry”. However, as the price of an item increases, or a product becomes more complex, so does the buying process and “consideration rate” because the impact of a poor purchase are far more serious. Let’s examine how to leverage the concepts of urgency & scarcity in your marketing strategy to achieve improved conversion rates.
4 Ways To Incorporate Scarcity Into Your Ads
1) Display stock limitations: “Hurry, only 1 spot left” 2) Showing real-time activity: Expedia does this with hotel bookings. 3) Increase the cost of your product as time decreases. 4) Spotlight customer behavior. Social proof is an indicator of popularity, and often demand: “300 travelers have rented this place”
Scarce items are perceived as exclusive, and more valuable, which in return makes buyers feel powerful.
4 Ways To Incorporate Urgency Into Your Ads
1) Pick a deadline and display it. 2) Use words like “now,” “hurry,” “instant,” and “immediately.” 3) Use urgent colors. 4) Show big numbers: Marketing Land used this ad as an example that shows big numbers to drive conversions.
- $30,000 — That’s cash, and that’s a real number. Give buyers data.
When you give visitors a time constraint on their offer they’ll start feeling the pressure to act now. Time constraints (real or implied) will encourage visitors to make quick decisions to avoid missing out on your offer.
No one likes to miss out on a great deal. Create a sense of urgency / scarcity in your campaigns, it’s a proven winner, both offline, and on. If you want to boost conversions, give your users a reason to take immediate action.