Principle Number Five To Getting Better Results

If people aren’t motivated to take action, then scarcity is one of the principles you can employ to get people to take action as opportunities appear more valuable when they are rare. Fear of loss will drive people to act, in a home energy study, people were contacted to tell them how much they would save per month if they were to take up a grant paying for home insulation.

When they changed it from savings per month to how much people would lose per month if they didn’t take up the offer there was a 150% increase in the uptake.

Boss music systems introduced their new Boss Wave Music System, the system itself was way ahead of anything that produced before and had the critics raving about it, Boss produced a leaflet about the system and at the very top of the leaflet with the words  “NEW” the Boss Wave System.

However sales were very disappointing in they called in Cialdini to see if he could improve them. Cialdini looked at the leaflet and all he did was change the word “NEW” to “Hear What You’ve Been Missing” and there was an instant 45% uplift in sales.

They then added what some of the music experts had been saying about the system to the leaflet (adding authority) and there was a 65% increase in sales.

Just to emphasise how people hate losing things, there was a supermarket that used to make up pizza that people could take away, what they do was add toppings to the pizza, each of the toppings costing an extra dollar, the average sale for the pizzas was $14

What they then did was advertise the pizza fully loaded for $20 and people had to take off the toppings they did not want, each topping they took off was a reduction in one dollar, the average cost per pizza went up to $16, an uplift of two dollars.

As scarcity goes a limited number offer is always more persuasive and limited time offer.

In an Australian beef study typically when people rang up to take in order and asked how many cases of beef they wanted, they would sell 10 cases of beef to the customer.

When they rang up to take in order and mentioned that there was going to be a scarcity of beef due to bad weather conditions in Australia the orders went up to 24 cases of beef.

When they rang up to take on ordering and said they’d heard exclusive information from their sources telling them that there was going to be a shortage of beef due to bad weather in Australia the orders went up to an average of 61 cases.

So scarcity with exclusive information really drives people to take action.

By Alan S Adams

About 

As an award-winning business coach and bestselling author, Alan S Adams has helped hundreds of businesses across the UK to move from simply surviving to positively thriving. The publication of his second book Passion To Profit: 7 Steps To Building A Kick-Ass Agency and his third book, The Beautiful Business: Secrets to Sculpting Your Ultimate Clinic, sees him focus very specifically on creative agencies and aesthetic clinic sector, sharing advice and guidance with the potential to revolutionise turnover, client retention and overall growth. Alan was also recognised by Enterprise Nation as one of the UK’s Top 50 Advisors and APCTC Coach of The Year Finalist.

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