A successful business strategy targets your audience and imbues them with the need to buy your products or services. If your target audience is millennials, you will find a lot of luck in the FOMO strategy. FOMO, or Fear of Missing Out, creates a feeling of anxiety and restlessness in people when they feel they are being excluded. It compels them to do what everyone else seems to be doing, like participating in an event or buying the latest “it” product.
If this idea excites you and you wish to explore it, here are a few tips to leverage FOMO for enhancing your conversion rates and boosting your sales:
1. Plan Limited-Time Sales Offers
Limited-time offer strategies are time-tested and have helped retailers move excess stock and drive revenue. Moreover, they can also help minimise inventory-related expenses. These work best if you are in the clothing industry and offer regular collections. Similarly, if you are in the business of perishable items, having a limited-time offer will help you move your products before they expire.
All you need to create a buzz about your upcoming sales are seasonal sales marketing campaigns. You can bundle products; offer fast-moving products with slow-moving ones. Another option is to provide a free gift to customers who buy during a limited-period sale. You can also use banners for the local promotion of this upcoming sale.
2. Stress on Scarcity
Do you know why diamonds are so expensive and in demand? Because of their scarcity. When you convey that a product is in limited supply, the demand will automatically increase. Customers who have been eyeballing the product for a long time will make a beeline to buy it before it goes out of stock. You can say that it creates a sense of urgency and prompts the customers to take action.
If you have an online website to sell your products, you can be more precise and state the number of items left in stock. For instance, you could display “Only 1 item left” to heighten FOMO among your customers and drive them towards completing the purchase. You can use flags in your stores to create the same effect.
3. Exhibit Fast Moving Products
You can create FOMO among online customers by displaying top-selling products on your e-commerce store. When customers see something that everyone else is buying and they are not, they get an added reason to purchase.
Moreover, the tag of “top-selling” also reassures customers that they are making the right decision. It indicates that several others have successfully purchased from you and are happy with what they received.
4. Provide Offers to the First X Buyers
One of the most effective ways to create FOMO is by offering freebies to the first few customers who buy from you. The idea of getting a freebie, especially if it is for your fast-moving products, will instigate customers to jump at the opportunity to buy them. To further increase the impact of this offer, you can communicate how many of the freebies are remaining, or you can organise giveaways and lucky draws for a few customers.
You can use the power of social media to engage customers during this process. To advertise these campaigns inside the store, you can use tools such as table toppers and floor decals.
5. Offer Free Shipping
Oh, the power of free shipping! 90% of buyers claim that free shipping is the most significant driving factor that has convinced them to shop online.
This study has also revealed that average order values increase by 30% when brands offer free shipping. You can use this to your advantage by offering free shipping for a limited period to create FOMO.
6. Provide Something Extra to Subscribers
Several business owners make the mistake of undermining the power of email marketing. It is one of the most effective ways to engage your customers and build a loyal customer base. Moreover, your customer mail list helps you analyse customer behaviour and tweak your products and services as per their requirements.
To make it lucrative for your customers, you can offer them something valuable. For instance, promise them early-bird discounts, special offers, and worthy information.
7. Show Expired Discounts/Offers
Let customers know about expired offers and discounts. It gives them a peek into your brand popularity and reinforces that your products sell out faster than they imagined. If they were unable to act swiftly this time, they will make a mental note not to miss your future promotions.
8. Create Social Media Campaigns
In the age of social media, nothing can work to create the effect of FOMO like social media campaigns. You can collaborate with influencers or offer free giveaways to engage customers and give them reasons to purchase your products. When they see that most of their peers and influencers are using your products, they will also be compelled to do so.
Posted in 
