How climate tech marketers can use the scarcity principle
Are you tapping into the power of this major emotional lever?
Hello friends,
This week we’re talking about scarcity.
But first, we want to know….
What do you want to know about your customers?
In the coming weeks and months, we’ll be interviewing corporate sustainability professionals to find out more about what it’s like to work on the ‘other side’.
Before we do, we’d love to hear from you: what would you like us to ask? What would you like to find out about your target audience?
Hit reply and let us know.
The rule of the few
People are far more motivated to make choices to help them avoid losing something of value than they are to obtain something of equal value. We get more satisfaction from not losing the dollar we already have than from earning a new one.
In that same line of thinking, we believe things that are hard to get are better than those that come easily. We perceive rare items to be more valuable, simply because they are difficult to come by.
Scarcity is a major emotional lever
An interesting thing about behavior drivers like the scarcity principle is that it works even when the affected party is privy to its power. Aware individuals can shield themselves to an extent, but not completely.
Why is this? To know is a cognitive act. To react to scarcity is an emotional act. And emotional reactions cloud our judgment.
Have you done any online shopping recently? Hi, Meg here, the scarcity principle is why I’m the proud owner of a new floral dress made from regenerative cotton. When I clicked “add to cart”, the small print told me there were only two left. I know that’s a marketing tactic. Maybe it was true, maybe it wasn’t — I like to think it was — either way, they got me.
We perceive the loss of an opportunity (available for a limited time only!) as a loss of freedom — the freedom to choose.
Examples of the scarcity principle in action
Remember that movie your parents wouldn’t let you watch as a kid? Remember how badly you wanted to see it? You wanted it more than you otherwise would have simply because it was off-limits.
Same goes for banned books. (Since this unfortunately is a thing.) A book is on a banned list? All the more desirable.
Lines around the block for iPhone and Playstation releases. (What if they run out of stock?!)
Limited enrollment courses.
“Take it or leave it” deals — anyone watch Suits? 🤓
How can climate tech marketers use scarcity to their advantage?
Lean on external factors to create urgency — namely regulation requirements or windows for government subsidies or tax incentives. Don’t over-rely on this though. Compliance is becoming table stakes and should be only a small part of your messaging strategy.
Consider early access and beta programs. Position it as an exclusive opportunity to influence the final product.
Highlight case studies that demonstrate the competitive advantage of early adoption.
Consider offering a reduced rate for your product or service for a limited time only. This gives buyers scarcity of time and the urgency they need to act quickly.
Or conversely, future-proof. In the example of carbon credits, buying now can ensure you’ll be locked in at below-market rates in the future.
The scarcity principle also applies to the way we evaluate information. We’re wired to assign value to information that’s difficult to access. Gating a valuable piece of content in the form of a lead magnet can lead your audience to perceive messages more favorably once they have access.
And finally, marketers may consider using this simple language swap (s/o Robert Cialdini) when trying to close a deal:
Option 1: Agree to this proposal and we have a deal.
Option 2: We have a deal. All you have to do is agree to this proposal.
In option 1, you ask your listener to do something in order to gain something of value. In option 2, you ask your listener to avoid losing something of value.
You know which to choose, right?
Until next time, friends.