Scarcity is a technique used by professional services marketers to boost sales. It’s not a comprehensive method by itself. All of the other elements of good marketing need to be in place first. It won’t sell your service for you, but it will increase your sales by urging your clients to act now.
What is Marketing Scarcity?
There are two types of scarcity used by marketers: limited quantity and limited time. Limited quantity means that there are only a certain number of units for sale, and only a few left. This is not very relevant for most professional service firms.
Instead, time scarcity is a tactic that may be used by some professional service companies. An example of time limits would be to offer a discount on your services, at last years rates(if you are entering a new year). Once that deadline comes, the deal is off. Again, the client knows that they need to act fast in order to get the benefits of your services at a discounted price. This tactic works well on any potential client who has been on the fence about using your service, or who really wants to utilize your service but is worried about the cost. It also reminds the client that your rates typically go up every year.
Using Scarcity Effectively
There are a few basic guidelines for using scarcity well. One is to actually follow through on your limit. If the deal is only good for one month, stick to only one month. Don’t make exceptions, or else the tactic won’t work as well next time.
Try using scarcity at the end of your sales funnel. Pre-qualify your clients and get them interested before you tell them there is a time-sensitive deal going on right now.
To learn more about effective selling techniques for your professional service company, read the full report titled, “Persuasive Selling.”