Scarcity is one of the factors that most influences consumer decision-making and behavior. Research shows that people focus much more on scarce resources, and their behavior changes when facing scarcity. In this article, I will explain how to use scarcity—an effect that influences our decision-making processes—as an effective sales-boosting strategy with discount campaigns in your Shopify store.
First of all, discount campaigns are already a strong incentive. Let’s look at why we need to create a scarcity effect when running discount campaigns.
Imagine This Scenario
Now, think of yourself as a consumer. You found a new fashion boutique that sells products that match your style. When you visited the store, it told you that if you provided your email address, you would get a 10% discount. You liked the products, so you immediately entered your email address. On the screen, you saw a discount code and learned that you would complete your purchase using the WELCOME10 discount code.
You browsed the store and liked some items, but these items were not urgently needed. Tired from the day, you thought, “I’ll check later,” and turned off your phone.
The next day, you began to see ads on your Instagram feed from other brands selling very similar products. You looked at some—they weren’t bad. But since you didn’t need them urgently, you kept scrolling, and the idea of “later” turned into “never.”
Now imagine a different scenario. What if, instead of giving you a discount code like WELCOME10 that you could use anytime, that first boutique gave you a special discount code that was only valid for 30 minutes? How would that change your behavior?
Our live tests with over 500 stores show that in this case, you would complete your purchase 63% of the time.
So what changed? In the first scenario, your purchase completion rate was only around 3%. In the second scenario, it jumped to 63%.
The Power of Scarcity
The answer lies in the scarcity effect. If you show discounts to visitors on your Shopify store without a time limit, they will know that these discounts will always be available. They might even expect bigger discounts via email later, so they have no reason to decide now.
Think about your customers: they are not wrong to feel this way. For years, different stores first offered a 10% discount to collect emails, then sent 15%, 20%, or 25% discounts to those who still hadn’t bought anything. Customers could use these discounts months later. This changes their behavior significantly.
Understanding Scarcity and Its Effects
Scarcity is a basic human and economic concept. Scarce resources become more valuable due to the fundamental law of supply and demand. This makes people sensitive to items that are running out or near their end. If something is almost gone, we pay more attention to it.
If only a few items of a product remain in stock, or if a product is available for only a short time, it creates a strong urge to buy right away.
As a basic human impulse, our fear of loss is much stronger than our desire for gain. Because of this, we become very sensitive to things we might lose within certain limits and may put in extra effort to avoid missing out.
Amazon is one of the brands that uses this effect very well. On Amazon, if a product’s stock is low or a discount is only valid for a short time, we see it clearly. Our experience so far shows that Amazon does not bother us by manipulating but instead provides real and correct information. This does not annoy us; it helps in our decision-making process.
Incorporating Scarcity into Shopify Discount Campaigns
Not using a trigger that is so powerful on human behavior in your Shopify store’s discount campaigns can lead to big losses. In this section, we will look at how to use scarcity in your Shopify discount campaigns.
Using Scarcity in Storewide Discount Campaigns
When planning discount campaigns, it is important to separate storewide campaigns and personalized campaigns. Here, let’s look at using scarcity in storewide discount campaigns.
Suppose you designed a campaign valid for all products and all customers in your store. You want to boost sales and revenue with a 20% discount, maybe to clear out your stock. There are two ways to do this:
1.Plan a Clear Campaign:
Create a communication plan for your campaign based on your store and the current season. Plan what kind of campaign you are running, its conditions, and its benefits, and set an end date for it. Before the campaign starts, communicate with your existing subscribers about it. Then, based on sales trends and your highest-converting products, announce this short campaign—lasting only a few days—to your customers via email, SMS, social media, and your website.
2.Avoid Fake Urgency Tactics:
You might have an old discount code from months ago that is now easy to find online. As sales drop, you could try using pop-ups to make customers think there is a current campaign. However, when visitors see different countdowns and timers each time they visit, they may realize that the discount code is always valid. Over time, this tactic becomes more and more ineffective.
As someone with over 10 years of experience in e-commerce, working with hundreds of brands, I strongly recommend you do not use the second method. It destroys your brand image and makes it harder each day to convince your visitors.
If you want to run a flash sale, it must have a clear start and end date. Always show your customers the correct dates, and do not bombard them with different campaigns all the time.
Using Scarcity in Personalized Discount Campaigns
Another way to create a scarcity effect with discount codes in your Shopify store is to offer personalized discount codes. In this case, there isn’t a discount that applies to the entire store.
•For visitors with a high purchase intent, what we call “dedicated buyers,” you do not offer any discount. This group completes their purchases directly.
•For visitors who are just browsing—“window shoppers” with lower purchase intent—you offer a different scenario. You offer each of these visitors a one-time-use discount that is special just for them.
The countdown timer works across your store with 100% accuracy, without even a one-second error. Your customer sees how much time is left on their special discount offer. On the product page, they see the discounted price and how long the offer is valid.
The discount code is applied automatically to the customer’s cart. Most importantly, when the time runs out, the discount code is automatically removed from the visitor’s cart and from your Shopify store. The same visitor cannot receive another offer during a cooldown period you set.
This setup is what you need to increase sales, protect profit margins, and maintain your brand image. To run all of this smoothly in your Shopify store without dealing with a single line of code, simply install the Growth Suite app from the Shopify App Store.
Common Pitfalls and How to Avoid Them
The most common mistake when trying to create scarcity with time-limited discount campaigns in your Shopify store is trying to lie to your customers. Today’s consumers are very sensitive to tactics that stores have used for years. They can easily tell the difference between a real campaign and a fake one.
Never use:
•Never-ending countdown timers
•Stock alerts that show different numbers on each page
•Messages like “X people are viewing this item”
These tactics are not only ineffective but can also cause lasting damage to your brand.
If you run a storewide discount, set an end date. When that date arrives, the campaign should truly end. Remove the discount code, and visitors should not be able to use the same campaign again.
If you run a personalized campaign, genuinely offer special deals for each visitor. The same visitor should not keep getting new offers; they should receive only one deal that is truly special for them.
Conclusion
Scarcity is one of our most basic human impulses, and when used correctly, it is very hard to say no. You can use the scarcity effect by creating time-limited discount campaigns in your Shopify store.
To use scarcity correctly and increase your sales and profitability while protecting your brand image, you must not lie to your customers. By establishing open and honest communication with your customers, you can successfully use the scarcity effect in your store.
If you want to run both storewide and personalized discount campaigns on your Shopify store without lying, we designed the Growth Suite app for you. With Growth Suite, you can launch time-limited discount campaigns in your store without changing a single line of code. Growth Suite does not use the scarcity effect to manipulate customers. Instead, it helps you design and manage campaigns based on the true principles of scarcity.
Also, don’t forget to check out the articles below for more tips on effective discount campaigns on Shopify.
Shopify Time Limited Offer GuideMastering Percentage Discounts in Shopify for Maximum Impact
Fixed Amount Discounts on Shopify: When and How to Use Them Effectively
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