This is part of a series of information/stories delivered from the INCREDIBLE book, “Influence: The Psychology of Persuasion” by Robert Cialdini. If you work or live a life where you have to get people to do thing, Influence studies and explains the 6 most powerful forces to persuade people. No other book has been recommended to me more, by people smarter than both of us.
In short, they are:
2) Social proof
3) Commitment & Consistency
4) Liking: People prefer to say ” yes” to those they know
And they will be a game changer for you and your business.
Today we elaborate on Scarcity.
More on Scarcity. But not much more. Almost out of scarcity
According to the scarcity principle, then, we will find a piece of information more persuasive if we think we can’t get it elsewhere. After we talked in my office one day about scarcity and exclusivity of information, he decided to do a study using his sales staff. The company’s customers—buyers for supermarkets or other retail food outlets—were phoned as usual by a salesperson and asked for a purchase in one of three ways. One set of customers heard a standard sales presentation before being asked for their orders. Another set of customers heard the standard sales presentation plus information that the supply of imported beef was likely to be scarce in the upcoming months. A third group received the standard sales presentation and the information about a scarce supply of beef, too; however, they also learned that the scarce-supply news was not generally available information— it had come, they were told, from certain exclusive contacts that the company had. Thus the customers who received this last sales presentation learned that not only was the availability of the product limited, so also was the news concerning it—the scarcity double whammy.
The results of the experiment quickly become apparent when the company salespeople began to urge the owner to buy more beef because there wasn’t enough in the inventory to keep up with all the orders they were receiving. Compared to the customers who got only the standard sales appeal, those who were also told about the future scarcity of beef bought more than twice as much. But the real boost in sales occurred among the customers who heard of the impending scarcity via “exclusive” information. They purchased six times the amount that the customers who received only the standard sales pitch did. Apparently the fact that the news carrying the scarcity of information was itself scarce made it especially persuasive.
This finding highlights the importance of competition in the pursuit of limited resources. Not only do we want the same item more when it is scarce, we want it most when we are in competition for it. The feeling of being in competition for scarce resources has powerfully motivating properties. The ardor of an indifferent lover surges with the appearance of a rival. It is often for reasons of strategy, therefore, that romantic partners reveal (or invent) the attentions of a new admirer. Salespeople are taught to play the same game with indecisive customers. For example, a realtor who is trying to sell a house to a “fence-sitting” prospect will sometimes call the prospect with news of another potential buyer who has seen the house, liked it, and is scheduled to return the following day to talk about terms. The thought of losing out to a rival frequently turns a buyer from hesitant to zealous.
There is a noticeable parallel between the ways that commercial fishermen and department stores generate a competitive fury in those they wish to hook. To attract and arouse the catch, fishermen scatter some loose bait called chum. For similar reasons, department stores holding a bargain sale toss out a few especially good deals on prominently advertised items called loss leaders.