Neuromarketing is not new. Major corporations have been using it while designing their products, packaging, and ad campaigns. But the cost of fMRI, EEG etc is too much for a start-up to really dream of using Neuromarketing.
There are few principles of neuromarketing which you can instantly apply to your sales page copy and design to get best out of it.
Marketers have been using scarcity marketing for years. The limited period offers, the special discounts (With urgency attached to it), the high prices, member exclusive offers, the waiting list for online courses are some good examples of Scarcity marketing.
In his book, Influence: The Psychology of Persuasion, Robert Cialdini argues, human brain is motivated more by the idea of loss aversion. The pain of loss is twice as potent as the pleasure of gaining something, its hardwired in the mammalian part of the brain. We want to avoid loss at any cost. Its better not to loose $5 than to find $5.
Why it works
Fear of missing out among millenials is one of the prime example of scarcity marketing. When a good deal is up for grab, no one wants to be left out. The rush to take a decision quickly shuts the rational part of the brain and you convince yourself in every possible way on how this offer is great.
Have you seen people forming queues in front of an Apple store. Apple has mastered the art of Scarcity marketing.
In April 2017, Supreme court of India Banned the BS III vehicles and gave 3 days to manufactures and dealer to clear their inventory. Two major players Hero MotoCorp and Honda Motorcycle and Scooter India sold almost .6. million vehicles in just 3 days.
Heavy discounts and an urgency; two major principles of scarcity marketing were at play.
Limited time or limited inventory offer is frequently used in sales copy. It works best when backed by proof. Here is a compilation of some witty examples of scarcity at play by brands. Booking.com puts smart use of urgency in the copy.
Flight booking, movie and concert booking sites create urgency by visually displaying the limited inventory.
Other good examples are Big Billion day Sale by similar festive offers by E-commerce companies.
Scarcity marketing pitfalls –
Overuse of scarcity marketing can backfire. If you frequently show limited inventory and heavy discounts, you may never be able to sell at a full price. Udemy is one such brand. Despite having a great branding and a unique solution, Udemy has overused the limited time and festive offers. This has alienated the trainers who use to offer quality content. Here are a few great examples of scarcity marketing