I head up the e-commerce department at Liquid Rubber, a leading provider of home improvement and DIY water ingress prevention products.
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As an e-commerce leader, you know that driving conversions is key to the success of your business. Since there are a wide variety of different tactics and strategies out there, it’s never easy to know what you should focus on first. If you have not yet heard of the fear of missing out (FOMO), it’s a relatively newer method of marketing in e-commerce that’s being embraced by leaders around the world due to its effectiveness, easy implementation and long-term yield.
Don’t worry; I'll explain what FOMO is and why it works. More importantly, I’ll give you information on how you can use it to drive more conversions for your e-commerce business.
The Concept Of FOMO
FOMO is a classic play on psychological marketing. It’s appropriately named because the entire goal of this type of marketing is to convince (the potential buyer that they will miss out on a unique purchase if they don’t buy) and convert (ultimately get the consumer to cross the finish line on the sale).
In the context of e-commerce, FOMO can be used to create a sense of urgency and make a product appear to be higher in demand while simultaneously encouraging the sale.
The Psychology Behind FOMO
A variety of different underlying psychological factors come into play when using FOMO as part of your e-commerce marketing strategy. This is because FOMO uses a physiological appeal to encourage the sale before missing out (e.g., “limited supplies” or “temporary price drop”). When consumers see that lots of other people have bought a particular product, they're more likely to want it for themselves.
Feeding FOMO is another superlative: scarcity. When something is in short supply, consumers tend to value it more highly, which also means that many are likely to buy it right away when given the right unique value proposition (UVP).
How FOMO Can Drive More Conversions
So why does FOMO work? For the simplest of reasons: Consumer demand. In this case, we're talking about implied supply and demand.
When consumers think that something might not be available for much longer, they're more motivated to act quickly. By incorporating FOMO tactics into your e-commerce leadership strategy, you can create a sense of urgency and scarcity that encourages people to make a purchase.
While this may technically only be implied supply and demand, the conversions you could earn are welcomed at all stages of the e-commerce sales funnel.
Types Of FOMO Tactics Leaders Use In E-Commerce
You might be wondering what sort of FOMO tactics leaders are using in e-commerce today. I’ve seen several different types of FOMO strategies in motion over my years of being involved in e-commerce, and there are several tried and true versions.
These include but are not limited to the following.
• Limited-time offers: Offering a discount or special deal for a limited time can create a sense of urgency and encourage people to make a purchase. Make sure to highlight the fact that the offer is only available for a short time to create a sense of FOMO.
• Low-stock alerts: Letting people know that a product is running low on stock can create a sense of urgency and scarcity that encourages them to buy it before it sells out. You can also use this tactic to highlight your most popular products and create a sense of social proof.
• Social proof: Including reviews, ratings and testimonials on your product pages can show that other people have bought and loved your products, which can encourage new customers to do the same. You can also highlight the number of people who have bought a particular product to create a sense of popularity.
• Abandoned cart reminders: Sending an email reminder to someone who has left items in their cart can create a sense of FOMO by reminding them that they might miss out on the products they were interested in. You can also include a limited-time offer or low-stock alert in the email to create even more urgency.
Let’s Wrap This Up
If you're interested in using FOMO tactics as part of your e-commerce strategy, you’ll want to keep a few of these parting tips in mind along the way.
• Be honest and transparent about the scarcity or urgency of your offers. If you say that something is only available for a limited time, make sure that it actually is.
• Take measures to ensure that your FOMO tactics are relevant to your audience. Not everyone will respond to the same tactics, so it's important to test and iterate to find what works best for your customers, your unique offerings and your sales funnel.
• Last but not least: Don't rely too heavily on FOMO. It's just one tool of many that you can use to market your brand, so wisely use it in conjunction with other tactics and strategies to create a well-rounded approach.
Overall, e-commerce leaders have the opportunity to use FOMO tactics to complement their current marketing approach and potentially drive more conversions.
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