More Sales and Conversion Using Groupon’s Scarcity Tactic


Masters of online marketing:
Proper marketing strategies and techniques are the backbone of any business especially when you are planning to sell online. In the article we will talk about the vital online marketing strategies that will give an edge to your online business and will turn the wheel around bringing in money at a much faster rate than you can expect. A number of online business websites launch and run these online strategies to reap lucrative results.

 

How Scarcity Tactic Worked for Groupon

groupon

Groupon is one such successful online business organization based on a number of promotional deals running 24 hours and seven days reaping millions of dollars. It is one of the successful model for every organization, which is considering selling their products online based on the marketing strategy model of Groupon.

Groupon’s strategy for selling the products is based on a powerful marketing tactic known as scarcity technique. Groupon deals in a number of products like beauty, healthcare, leisure, restaurant, services, shopping, tickets, travel, and wellness.

They make use of the scarcity tactic and increase their conversion rates by about 40%. Scarcity tactic refers to the technique of displaying the scarcity of a product. In nonprofessional terms, it is a technique that works by showing that the product, which is being advertised for sale, is in demand and supply is short. This immediately triggers the part of the customer’s brain that says, “Act now, or you will lose the offer forever”.

It is human nature to act upon something immediately when a threatening call is made about the immediate action requirement. Groupon marketing strategy target and cash this part of the human nature. They build their advertising strategy based on scarcity tactic. Working on the strategy of scarcity, Groupon organization has made millions.

 

Why and How Scarcity Tactic Works?

Scarcity tactic works by building three types of techniques:

  1. Timer-based technique (a timer is set according to which the visitor when visits the offer page notices that if he does not accept the offer now, it would expire in few seconds, minutes, or hours. It is usually launched during occasions and celebrations).
  2. Quantity-based technique (the quantity timer shows the number of items left before they go out of stock and the visitor is tempted to accept the product before it runs out of stock).
  3. Evergreen scarcity technique (this is a timer-based technique but is not limited by the seasonal or occasional promotional offers).

 

Below is a checklist showing how and why the scarcity techniques work:

  • Target the customer’s “act now” switch situated in brain
  • Tempt the customers to buy immediately
  • Gives the customer only two choices–Buy now or regret forever. No “consider later” option is available
  • Fast conversion rate
  • Income is doubled or tripled in no time after starting the timer for the offer to expire
  • People hate the feeling of missing out on something everyone is going for
  • People want to buy the best deal available and feel threatened if they know the deal is about to expire
  • Triggers the desire to act and not consider
  • Highlights the sense of urgency

 

Implementing Scarcity Tactic on WordPress Blog

 1. Scarcity Samurai WordPress Plugin

Scarcity Samurai comes in two versions. The single site license costs $97 and Scarcity Samurai Pro for unlimited site at $197. It allow you to create beautiful overlaying header or footer banner over your content. Your site’s visitors will never escape the urgency of your offer.

Scarcity Samurai Screenshot

Scarcity Samurai Features:

  • Integrated seamlessly with popular auto-responder software. Support Aweber, MailChimp, GetResponse, InfusionSoft, Office Autopilot and SendPepper.
  • Easily create one-time offer for your Clickbank, JV Zoo and Commission Junction products.
  • Deadline across multiple pages and posts, expiring them at the same time on autopilot.
  • Campaign wizard to create Evergreen or Fixed Date Scarcity without having to write a single line of code. 
  • Drag and Drop banner editor.
  • 30 days money back guarantee.

Learn more about Scarcity Samurai at official site

 

 2. Easy Deal Builder

Easy Deal Builder is a standalone PHP based software. Single site license cost $37 with 12 month software updates.

Easydealbuilder

Easy Deal Builder Features:

  • Run the deal anywhere including Facebook and WordPress.
  • Built in Social Sharing function
  • Build in Exit Pop-Ups
  • 60 days money back guarantee

Learn more about Easy Deal Builder at official site 

 

Conclusion

Selling is all about targeting the right audience and designing great marketing strategies. When you employ the right fit for your online business you are providing your business an edge over the others. Groupon has proved that scarcity and urgency can increase your sales and conversion significantly.

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Disclosure: I receives compensation from some companies whose products I review. I test most product personally and give honest opinions and high marks to only the best. I am independently owned and the opinions expressed here are my own.





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