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How to use scarcity in brow business?

Jan 31, 2024, Update: Jan 31, 2024, author: Hairstrokes.com / Holistic PMU
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"Scarcity tactics are common in the brow business, but how well they work can be complex. While effective sometimes, they might not always suit an artist's long-term objectives. This article delves into well-researched insights on using scarcity in the brow industry."

1. The Objective and the Results


Scope of Research and Criteria

Our team at Powderbrows.io initiated a research project consisting of three completed stages, with a fourth currently underway. The focus was to explore the role of scarcity in marketing for Powder Brows, Hairstrokes, and microblading. Recognizing the widespread use of scarcity tactics, we aimed to identify the specific conditions under which scarcity effectively drives results in the brow business.

Our primary data was gathered from two distinct periods: the "pre-Covid" years of 2018-2020 and the period from 2020-2023. We analyzed over 920 social media campaigns offering brow services and training, utilizing scarcity as a primary or secondary element to enhance conversion rates. Our data spans 24 countries, including most major EU countries, the United States, and the United Kingdom.

The main demographic groups studied were women aged 25-34 (comprising 42% of the data), followed by women aged 35-44 (26%), and then women aged 18-24 (13%). Additionally, we conducted 433 interviews with participants in these campaigns to understand their motivations for engaging with certain campaigns and their resistance to others. The results were consistently revealing across the board.

Scarcity Works Best in Specific Types of Campaigns

While it’s not groundbreaking to state that scarcity is effective, the intricacies of its implementation are critical. Applying scarcity in brow business marketing requires more nuance than might be assumed at first glance. We will delve into these nuances to provide a clearer understanding.

2. Employing Scarcity in Marketing


Limited Availability

A powerful way to utilize scarcity is by announcing limited appointment slots in an artist's schedule. Artists often communicate this through social media posts to encourage prompt action from potential clients. The principle behind this is creating a sense of urgency to book the available slots. This approach is equally effective for training sessions or webinars, especially when availability is low and a service or item is nearing a "sold out" status.

Deadline-Driven Offers

Another common strategy is setting deadlines for offers, such as discounted gift cards, which are valid only until a specified date. Campaigns might use reminders and countdowns to emphasize urgency. This tactic is also useful for early-access promotions, offering better conditions exclusively within a limited timeframe.

Exclusivity in Hierarchy

This approach often targets a person's desire for status. For instance, an artist may provide "VIP client status" as a reward for repeat business, or an academy might create a hierarchical structure with each higher level being more exclusive. These statuses are marketed as aspirational, motivating clients to strive for them. This principle also applies to memberships and co-promotions, where a special "limited status" with a brow artist might offer special privileges or better terms from a third-party partner.

Combined Scarcity

Different scarcity tactics can be combined for greater impact. For example, "model search" campaigns by emerging artists often use multiple forms of scarcity. Initially, the scarcity of model slots is highlighted, such as only looking for three models.

Adding another layer of scarcity, this opportunity might be shared selectively through private messages before a public announcement. This selective sharing can significantly enhance the offer's appeal, sometimes increasing attractiveness by over 200%. However, like any scarcity strategy, it must be implemented correctly and contextually to succeed.

3. When Scarcity Works


Freshness Is Vital for Limited-Item Campaigns

For campaigns focusing on item scarcity, the timing of when an item becomes "scarce" is crucial. For example, when an artist offers limited model seats or the last available appointment slots, the response rate declines sharply with time. Specifically, the likelihood of people responding decreases by over 52% on the second day and drops 20% after 48 hours. While factors like price and campaign duration influence this, the variations are minor.

This indicates that such offers rapidly lose their appeal. If an artist’s budget for these flash offers doesn’t consider this, the campaigns might not be effective. A practical approach is to allocate nearly half of the campaign budget on the first day, 30% on the second day, and 20% on the third day. Extending these campaigns beyond this period could be counterproductive, as it contradicts potential customers' psychological tendencies.

Reverse Effect in Deadline-Based Campaigns

Deadline-based campaigns exhibit a contrasting pattern. For example, offers like discounts for online training courses or seasonal gift cards available until a fixed deadline generally follow this pattern: 15-20% of conversions occur at the offer's announcement, 5-10% during its availability, and a significant spike (around 75%) as the deadline nears.

This suggests that budget allocation for deadline-based campaigns should mirror this trend. An even distribution across the offer period could be a missed opportunity. Most of the budget (50% or more) should be directed toward the final 48 hours, particularly the last 12 hours, to maximize the observed behavioral trend.

4. Believability in the Possibility


How believable the fact of scarcity is

One critical factor that can reduce the effectiveness of scarcity-based campaigns in the brow business is the perceived authenticity of the scarcity. Our research highlights two factors that enhance scarcity's effectiveness: the tangibility of the item and the total number of items sold. The following can illustrate this.

On one end of the spectrum are tangible items with a limited stock, such as PMU (Permanent Makeup) machines. When only two units remain and an offer is made, the scarcity is believable because once sold, no more are available.

In contrast, applying scarcity to services like joining a mailing list or attending an online seminar with ample seats can be counterproductive. This is particularly true for consumers with higher purchasing power, who are more adept at analyzing such situations. For example, a significant portion (possibly 10-20%) of the target audience may avoid pursuing an offer because they perceive the scarcity as artificial. Moreover, those influenced by the scarcity tactic often admitted they couldn’t afford the item.

The key lesson is that individuals with sufficient financial means are less inclined to be swayed by implausible scarcity tactics for higher-priced services or items. Claims of "sold out" online training sessions or digital products "ending in stock" may not be convincing. Marketers should exercise caution when incorporating these elements into their campaigns. Habitually adding phrases like "limited seats only!" at the end of every marketing communication may not be the most effective strategy.

5. Probability of Competition


In the brow business, the success of scarcity-based campaigns is significantly influenced by the perceived competition—that someone else might claim the limited item, solution, or appointment time before them. On social media, two criteria create this sense of competition: a) visible public engagement with the campaign, evidenced through likes, shares, comments, and views, and b) the unavailability of certain offered items during the campaign. The absence of these elements can reduce scarcity's impact, potentially undermining the campaign.

Consider two examples from our study. First, an artist with a substantial following offers five model seats on Instagram or Facebook. If the post quickly gains considerable likes, receives comments, and the artist announces that one or two slots are already taken, the potential for increased buyer interest is significant. In this case, the perception of scarcity can boost the likelihood of interested buyers reaching out by 50-200%. Here, scarcity works in the artist's favor.

Conversely, if an artist with a smaller following posts about "last available booking times" but the post garners only a few likes, no comments, and shows no signs of competition, the scarcity strategy may not be effective. Worse still, if potential customers notice similar posts, especially those claiming the exact "last available times," it raises doubts. Such scenarios can turn scarcity against the artist. Prospective customers, noticing the lack of social proof, might question the quality or popularity of the service and decide not to engage, associating the scant engagement with lower service quality or diminished demand for the offered solutions.

6. Next Available Option


The perception of the duration of unavailability plays a crucial role in the effectiveness of scarcity-based campaigns. Interviews with customers who responded to certain scarcity-related offers and ignored others reveal two key insights.

Firstly, the scarcity effect in the brow business is significantly stronger—36-40% more potent—when there is considerable uncertainty about the end of the "scarcity period." Specifically, if the artist clarifies when similar conditions for acquiring the item, solution, or product will be available, it enhances the perception of scarcity.

Secondly, the longer an item remains unavailable, the more effective these announcements are. The apex of scarcity induction is to announce that an item will be "unavailable forever." For instance, if an artist states that this is the "last ever" time, a specific solution is offered at a discounted rate. The longer the period of unavailability, the more potent the scarcity tactic becomes, potentially increasing its effectiveness by up to 300%.

Artists must strictly adhere to these scarcity conditions. Extending deadlines or making exceptions after the announcement can undermine the scarcity tactic, ultimately turning it against the artist.

Overall Context - Scarcity of Scarcity Campaigns

A final factor impacting the success of scarcity campaigns is their frequency. When scarcity campaigns constitute less than 20% of an artist's total operational time during a specific period, they are rare enough to boost the scarcity effect on sales significantly. Conversely, if an artist employs scarcity tactics for 50% or more of their operational time, the effectiveness of such campaigns wanes. Despite meeting all other criteria, the overuse of scarcity becomes counterproductive in these situations.

7. Focus on “Hard”-Closing


In the broader context, campaigns with strict deadlines encourage a "hard-closing" approach. This method compels customers to make a definitive decision: to purchase, book, or join. Many artists, especially those new to the field, are apprehensive about this approach. They worry it might lead to some customers rejecting the offer, resulting in lost sales.

However, many seasoned artists recognize the benefits of employing scarcity tactics to implement "hard closing." Fundamentally, "hard-closing" is often a fruitful strategy. Its primary advantage lies in clarifying the customer base's hesitancy. It allows artists better to understand the true demand for their products and services. By enforcing decisive action, artists can better assess and respond to the market's needs and preferences, streamlining their approach to cater to the most responsive and interested customer segments.
 
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Carmen
Wednesday, Jan 31, 2024

I have used that a lot and this has been probably the most effective strategy in the PMU business.


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