💦 Scarcity Principle:
We value things more when scarce.
Airbnb
This is a 'rare find'
People will feel pressured to make a decision (e.g., to purchase an item, or sign up to a trial), if they believe that there is a limited supply, or a limited time to act.
For example:
"Only 4 remaining"
"Only 3 days left to redeem this offer"
✅ Conversion rates
A limited supply (of more or less anything) can incentivise people to convert (make a purchase).
✅ Sharing & referrals
People may be more incentivised to invite their friends, if they believe that the supply is limited.
"It's now or never".
✅ Purchases
Faux scarcity:
You'll often see companies create faux scarcity, with unrealistic offers "for today only"—occasionally with a tacky countdown timer.
This is a terrible experience, because if the user comes back and sees the same offer, they'll question your integrity.I
Instead, it's much more effective in the long run to utilise scarcity when it's real.
On some listings, Airbnb will display a message that this property is normally booked.
This encourages quick bookings, and implies social proof. (i.e., if it's normally booked, it must be good).
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