Benefits and methods of using FOMO in online businesses

In the modern times, where businesses pose a tough competition to their competitors, each undertaking works tirelessly towards improving their business strategies and marketing techniques. From marketing products on various levels to advertising the brand on different platforms while focusing on various human factors, businesses, especially those operating through the Internet, have hand picked their own methods which are most suitable for their type of business. One such method is FOMO marketing which is used as the most effective technique of marketing a certain product by a message that triggers an individual with the innate fear of being left out thereby motivating them to take active part in that activity. A website may use FOMO to motivate their customers so as to act immediately or face the risk of missing out on a great opportunity. Moreover, FOMO popups and notifications are one of the easiest ways that can be implemented by a website to increase engagement and business.

Outline :

1. Why is FOMO used in online business?

2. The effects of FOMO

3. What Triggers FOMO

4. Top 5 Methods of FOMO marketing

5. Conclusion

1. Why is FOMO used in online business?

FOMO notifications and popups are designed in such a manner that they easily grab the attention of website visitors. These notifications display a variety of information including data related to customer engagements and various other activities taking place on the website. Through such popups, websites also display limited period offers that are sometimes exclusive for the visitor thereby prompting them to make a quick decision or end up losing on the opportunity.

Over the years, FOMO marketing has emerged as one of the most powerful tools for marketing especially in the 21st century. Ecommerce giants like Amazon and Ebay have learned how to use the FOMO psychology to influence the purchasing behavior of their consumers for the benefit of their business. Humans have a general tendency to compare themselves with other individuals and the same behavior compels them to continuously strive towards becoming a better version of themselves under the influence of the glamorized personas of the social media.

2. The effects of FOMO

According to a general survey conducted to study the marketing statistics in the United states, one out of every three individuals experiences the fear of missing out on certain deals and offers given by E commerce websites. Moreover call mom seven out of 10 people tend to purchase a product after seeing their associates buying the same product or service. Also, four out of 10 social media users update posts about their purchase at least once in a year. Lastly, three out of 4 individuals experience FOMO while looking for products on the Internet.

For a business to strengthen its foothold in a market, it is important for such business to understand a group purchasing power along with its buying habits. It shall study relevant data across people of all ages in the targeted group and learn about the effects of FOMO on such individuals. However, in the United states, as of 2017, people above the age of 25 contributed to 54% of the total online shoppers in the country. It was also studied that the same people spent over $600 billion annually on online purchases and the number was expected to increase at a steady pace with more and more people getting employment and better jobs.

These online consumers are prone to experience the fear of missing out the reason for which is an extended period of self-determination which in itself is a result of advanced education and increased consciousness. Socially and environmentally aware people tend to create personal connections along with adding value to their individuality. Such individuals may possess the purchasing power for a certain product but they still refrain from buying it in search of more practical and feasible deals.

3. What Triggers FOMO

Mostly, websites use FOMO for serving two main purposes. Primarily, FOMO marketing is used as the most powerful tool for promoting a brand and influencing consumer choices. The driving force behind this is that when people see a product or service gaining credibility and becoming popular amongst many, others try to avail it as soon as possible. Moreover, FOMO marketing practices are also used to speed up the process of purchasing. By using FOMO marketing, businesses try to instill the feeling of urgency amongst its visitors by setting time limits on deals and displaying other notifications showing data about low stock availability, limited period offers etc. so as to encourage consumers to buy a certain product readily in order to avoid missing out on the offer.

There are a number of driving factors which facilitate FOMO marketing –

  1. Scarcity

    With decreasing availability, opportunities as well as objects become more valuable for consumers. Rarity of things makes them more desirous and urges people to buy them in higher quantities due to their exclusiveness. This fact is very well known by different E commerce websites and thus they use catchy phrases like “almost out of stock” or “only a few left in stock”. With real and apparent scarcity, consumers are made to believe that they might lose on the best of offers if they do not place their order for a certain product or service as soon as possible. On top of this, other services and memberships like the ‘VIP club' also help in adding to the brand loyalty.

  2. Urgency

    It is a normal human tendency to develop an orange of buying immediately because most of us tend to cater to our immediate needs more than the future ones. Online businesses use phrases like deal of the day or limited period offer in order to lure jo Kotheir customers into making an immediate or urgent purchase.

    Black Friday sales are an offspring of this concept. In such cases of impulsive buying, people tend to forget or ignore the consequences of their purchase and choices which further facilitates increasing conversions.

  3. Emotional appeal

    Items which have a pleasant characteristic are often desired by people for various aesthetic and unique features. Emotional appeal or desire is one of the most prominent guiding forces behind FOMO marketing as the emotional component involved in this process facilitates impulsive purchasing by the consumer.

    Moreover, such emotional impulses are often attributed to certain external factors that revolve around the consumer; some of which are – the cultural settings of the consumer's living environment, the financial condition and buying power of the consumer, the age and gender of the consumer, their personal experience with the same website or business in the past, time related factors and location related dynamics.

  4. Jealousy

    Social Connections are one of the primordial requirements for the very existence of human beings. It is through these connections that humans develop and experience anxiety when they notice that they lack something which others possess. To add to this, social media acts as a tool to fire up such feelings and emotions thereby motivating people to buy what their neighbors possess.

    People who travel abroad and meet social media icons or even go to concerts and other events tend to create a feeling of envy in the minds of those who follow them. This makes other people follow them in order to get rid of their anxiety and the fear of missing out. FOMO marketing tactics apply the very same principles to induce negative feelings amongst individuals in order to lure them into buying certain products. However, such businesses must also take note that these policies may sometimes backfire on their own business and thus they need to be carefully crafted so as to affect consumer choices and preferences in a positive manner.

  5. Loyalty of old consumers

    The Internet can prove to be one of the most effective yet economical medium of promotion for any business. All of us know that social media can help in influencing consumer choices by making people aware of a certain product and service and making them like the same by giving them testimonials and advertisements related to the product. Moreover, it is also viable for businesses to engage with their consumers and address their complaints and wishes in the comment section of the product review page.

    This not only increases trust and brand loyalty in the eyes of consumers but also makes them feel like their opinions and demands are valued by the company or business.

  6. Increased buying

    An upsurge in sales with more and more people buying a certain product or service, can give rise to impulsive buying with people getting motivated by others' purchases, experience and endorsement which in turn gives them a sense of urgency. Moreover, people would like to purchase a certain commodity in the fear of missing out wherein they will be forced to believe that since a commodity is so high in demand, it will soon run out of stock and thus they must act immediately to feast on the rare deal.

  7. Reviews by other consumers

    Visitors and consumers get highly influenced by positive reviews which they read about a product on the website which are posted by real persons. Such reviews add to the ‘social proof' technique which is used by websites to assure their new consumers by giving them an example of a pre- satisfied consumer. This method not only promotes the brand at a whole new level but is also cost effective when it comes to enhancing brand popularity economically. Also, reviews and endorsement news posted by famous personalities can spread the word at a faster pace if their posts go viral.

  8. Businesses supporting noble causes

    Many online businesses have their own support campaigns which work towards increasing awareness and Giving a helping hand to those who require help and support. By this means, brands can tell their customers that their company is not merely in the market for making profits but it also cares about each and every individual of the society which further creates a sense of trust amongst its consumers and visitors.

    Overall, the use of FOMO as a marketing tactic requires developers to use social media and other forces wisely in order to attract clients and also build brand loyalty simultaneously. With the critically planned marketing tactic, businesses can not only attract the millennials but may also appeal to individuals across all age groups. For this very reason, businesses shall learn to harness the use of FOMO marketing to increase their engagements and also boost their sales and conversions effectively and also economically.

4. Top 5 Methods of FOMO marketing

FOMO marketing techniques have been worked on tirelessly to improve and perfect the market presence of various brands on the web. Each specific business has modified and evolved their own marketing strategy using the fear of missing out to extract the best outcomes and maximize sales. There are a number of ways in which online businesses can benefit from this technique, a few of which we will be addressing in the latter part of this article.

  1. Brands offering exclusive deals

    One of the best ways to make your consumer feel special is by offering them exclusive deals that are unique and make them feel privileged. The exclusivity of such offers makes the consumer favor the products or services of such brands and thus this adds not only to the sales but also increases customer loyalty.

    For instance, there are certain web businesses which offer their consumers the most exclusive yet time barred deals as soon as they sign up on the website. Moreover, they also provide member-only discounts and access to the exclusive collection which makes people sign in for their membership in order to avail the offerings.

    This type of marketing is not only limited to ecommerce websites but is also used by the entertainment industry wherein the creators target visitors and make them sign up for the membership in order to download exclusive content, purchase merchandise along with benefiting from other deals.

  2. Providing free shipping

    If you are accustomed to buying from the Internet, you might have noticed websites that offer free shipping on a certain amount or quantity, based on the circumstances. This is another form of FOMO marketing wherein brands incentivize consumers who buy products which are expensive or high in quantity. According to a general survey in the United States, 9 out of 10 purchasers have accepted the fact that websites which offer free shipping on their products are largely preferred to buy them for online shopping as free shipping proves to be the top incentive while buying products on the web.

    While some offer discounts on a particular time or for a particular period, others encourage their consumers to spend above a threshold in order to avail the benefit of free delivery. For this, brands show a small pop up somewhere around the ‘purchase now' icon or in the buyer's cart in order to compel the consumer to buy the product immediately.

  3. Creating scarcity

    All of us have at some point while looking for products on the Internet, seen how websites display pop-up messages and other related notifications regarding the limited stock of a certain product or the limited entries for a particular service or membership. This feeling of losing out on some offer that is limited in number and is bound to run out of stock if not purchased, is used by web businesses to instill in people the fear of missing out so as to make them place an instant order for the same.

    This is how scarcity marketing works and how brands motivate people to purchase a product by telling them that a product is running out fast. Moreover, brands also promote products that are made in limited numbers and marketed as limited editions. This gives a sense of exclusiveness to the buyers which even motivates them to pay more than usual for a good.

    Lastly, brands also offer discounts in the form of flash sales that last for a short period. Please lightning sales work around the principle or FOMO marketing that only lasts for a day or two giving high discounts and incentivizing consumers to make purchases.

  4. Instilling the sense of urgency

    Setting up deadlines for offers and discounts along with other deals is another form of FOMO marketing which increases sales and boosts conversions. When people see that products from their favorite brand are being offered at much cheaper rates when compared to the normal times, they immediately jump to conclusions and end up chasing the product. Such consumers fear that if they fail to avail the benefits of the current offer, they might not be able to get a better price for the same once the deal is gone.

    There are a number of ways in which online businesses create a sense of urgency amongst their customers –

    The easiest way to do this is by putting deadlines to the offers that are available on the website. These deadlines are displayed on huge pop-ups that overlay on the product page reminding shoppers that the clock is ticking and they must make quick decisions.

    Another way of using the urgency tactic is the exit intent pop up Barron websites offer limited period deals to visitors who are about to leave the web page. This is probably the last move which a website makes to make a visitor a consumer.

  5. Focus on social proof

    With the help of genuine online reviews and comments, websites are able to earn the trust of visitors. Positive reviews about a product prove to be one of the easiest ways to convince other buyers into purchasing it. These reviews along with genuine ratings are the best form of social proof for an online business which also helps in increasing activity around the product thereby creating the FOMO feeling for those who have not yet purchased the product.

    Additions to the social proof can be made in a number of ways for example – by product reviews themselves, by product or service related ratings and by buying positive social media posts that are created and shared by consumers themselves. Testimonials that are available in all different forms, also add to the trustworthiness of a brand as these testimonials are nothing but reviews in the form of videos and photographs.

    With all this and more, FOMO marketing practices can make a business reach pinnacles. Now that we are done with the fundamentals of FOMO marketing, maybe it’s about time that you start using FOMO notifications for your own online business. For this, with the help of Justkapture, you can get started with FOMO notifications without hassle and can create your own customizable popups for your targeted audience. With the help of Justkapture, you can guarantee yourself and your business an increase in conversions and sales with immediate effect. So what are you waiting for? Sign up now!

5. Conclusion

In todays competitive environment, with the evolution of cutting-edge technologies and softwares, it is important for businesses, specially for those on the web, to keep on working towards developing new methods of marketing their products and services.

In this sphere,FOMO marketing can play a crucial role since the phenomena has been magnified greatly by social media platforms and the Internet as a whole. with increasing connectivity, everyone knows what others are doing and what are the things that are trending or exclusive in nature. While the fear of missing out might instill anxiety in some individuals, it can be used as one of the most powerful and effective marketing tool. For this object, we here are Justkapture can help you by catering to you with all the essential tools and services required to boost your conversions and business by using the technique of FOMO marketing.

Other Popular Articles

It's easy to get started

Try Justkapture free for 14 days