Fear of missing out (FOMO) is a great sales tool when used in the right way, like when you limit the number of clients you take on in a year, or reward email subscribers with exclusive offers. It’s much less effective when your customers feel like they’ve missed out on a better deal. Here’s why and what to do instead!
We’ve personally experienced this in the past, with businesses offering specials worth hundreds of dollars that we would have been eligible for if we had waited a little longer before booking. We’ve also seen it play out publicly on social media, with companies receiving complaints about promotions from people who had already purchased their products at full price.
Often businesses default to discounting when they want to boost sales quickly. Unfortunately this can end up having a less positive effect, lowering your perceived value and frustrating your existing customers. No one wants to pay a premium price for an identical product or service! It can also send the message to potential clients that they should wait until the next promotion to get the best price.
Instead, it’s a much better proposition to offer a ‘bonus extra’. Customers are less likely to begrudge someone who scored free delivery or a complimentary bottle of champagne. Even better, if you decide to run a promotion that would also apply to current clients, turn it into an opportunity to surprise and delight them!