Should Your Business Create Urgency?
It seems that everyone businesses online are using urgency tactics to rush consumers into making decisions a little too quickly online lately.
You have certainly seen things like ‘Hurry, Offer Ends Soon!”, ‘Selling Fast!’ or ‘Last Few Remaining!’. While they’re fine here and there, it seems as though some places never stop the rush.
What’s the hurry?
Businesses use this tactic in an attempt to prevent customers deliberating too much, and make a fast decision to buy. It is one of the most powerful techniques around and is very effective, as it taps into our psychology.
It is very effective
We have all received the seen the signs in windows, telling us there is a limited time offer. Particularly after Black Friday. Many people have experienced buyers remorse from making a rushed decision and then wishing they had thought it through for longer and made a more informed decision.
It is very effective, as it gives consumers FOMO (fear of missing out) and makes them want to get the deals while they have the chance (which is usually a small time window).
When a product is limited, it’s very effective to use a scarcity tactic. Telling the customer that there are only so many products left. This is most effective when the product/service is something unlikely to become available again. It is also quite effective with products that are in high demand, such as popular Christmas toys, new consoles and during big sales e.g Black Friday.
People act fast when given a sense of urgency. Many problems that cause conversions to be lost are due to people overthinking, waiting to long or not being interested enough to buy. Creating urgency can negate these issues. Consumers will have less time to overthink, they won’t have time to wait too long, and their interest might increase if they know the offer/product won’t be around for long.
Know your customers
While the internet is built for speed, this doesn’t necessarily businesses should use it in every aspect. Some customers need time to consider all factors. While you want customer to buy your product, it is no use if they get buyers remorse and return it in a week. You should never abuse the urgency tactics. After enough ‘limited time’ offers, it will become clear to consumers that there is no real urgency.
You should always test new tactics with customers. Your consumers may respond in a very different way to the consumers of another company. You should base the amount you use these tactics on your stats.
It is important to remember that urgency tactics have the potential to turn away customers. If done poorly, customers can be put off. So, be very careful when deciding how to implement these strategies.