Thomas from Ariyh - 🎓 The “Sold-out” effect
🎓 The “Sold-out” effectDisplay some sold-out options to increase quality perceptions of your products and increase sales (people said they were 22.7% more likely to buy in one experiment). Don’t show too many or the effectNew to Ariyh? Join 7,162 evidence-based marketers for 3min insights 💡 based on research 🎓 to grow your business 📈 If you find these insights useful please share them with your colleagues and friends, Ariyh grows thanks to you! Today’s insight is brought to you by… Helpfull See why so many marketers rely on Helpfull for making better, more informed decisions. With Helpfull you get qualified feedback from people in your target market, in minutes. Simply set up a survey, pick the demographics you prefer, and get a detailed report back from insights of our panelists. Use coupon code ARIYH50 for $50 in free credits to try it out. Use it soon, promo expires in 48 hours. Want to sponsor Ariyh? Here’s all you need to know. 📝 IntroWe commonly come across “sold out” options when shopping (e.g. empty shelves in a store, unavailable color options online). How does seeing these impact our impressions and the chances that we’ll buy? Two competing factors come into play. One is more likely to make us purchase, the other has the opposite effect. So here’s what we should do as marketers to maximize sales. P.S.: I only have 1 spot left in 2021 for personalized evidence-based recommendations. Reach out here for a 30min chat to see if you’re a fit. No strings attached (I’m always happy to chat with fellow marketers and entrepreneurs ;) Whether you’re a small business or a large company doesn’t matter, but I aim to only work with clients for which the expected revenue impact is at least 10x what you’ll pay. Previous insight: Invent ‘Special Days’ to launch promotions (100+ more insights here) Display a balance of some - but not too many - sold-out optionsImpacted metrics: Customer acquisition 📈 RecommendationKeep showing some sold-out products (e.g. different sunglasses models) and options (e.g. colors) instead of hiding them. People will be more likely to buy the remaining options (unless they were looking for that exact product, of course). Try to keep the proportion of sold-out products between roughly 10% to 30%. If you go above this the effect may backfire. 🎓 Effects
(Two contrasting effects influence how likely people are to purchase based on the proportion of sold-out products - Click to zoom in) New here? Subscribe for the latest marketing research 💡 from top business schools 🎓 in 3min practical insights 📈 🧠 Why it works
✋ Limitations
🏢 Companies using this
⚡ Steps to implement
🔍 Study typeOnline experiments. 📖 ResearchTian, J., Chen, R., & Xu, X. (April 2021). A good way to boost sales? Effects of the proportion of sold-out options on purchase behavior. International Journal of Research in Marketing. 🏫 AffiliationsSchool of Economics and Management, Tsinghua University; School of Management, Hainan University; and Agricultural Bank of China. China Remember: This research could be proven wrong in the future (although this is rare). It also may not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s insight to help me make Ariyh's next insights 🎓 even more useful 📈 How was today’s insight? Want to sponsor Ariyh or ask a question? -> Reach out at thomas@ariyh.com New to Ariyh? -> Subscribe below or read other 3min marketing insights here |
Older messages
🎓 Invent ‘Special Days’ to launch promotions
Tuesday, November 2, 2021
Promotions on unusual 'Special Days' (eg World Tourism Day, anniversary of first purchase) are more effective at increasing sales. In one experiment, people were 25% more likely to buy.
🎓 Sustainability boosts sales
Tuesday, October 26, 2021
Sustainability initiatives signal trust and product quality for small businesses and startups. People were 82% more interested in products from a sustainable startup.
🎓 How to encourage pre-orders
Tuesday, October 19, 2021
If your launch is far away, use free gifts rather than discounts to encourage pre-orders (in one experiment they were 125% more effective). If it's less than a week away you can use either.
🎓 Short, easy names are more trustworthy
Tuesday, October 12, 2021
eBay sellers with short and easy to pronounce names were judged as 31% more trustworthy than those with long and difficult names
🎓 Productize your service
Tuesday, October 5, 2021
Define, brand, and price your service as if it's a product. You will help people picture what they're getting for their money. Expect sales and satisfaction to increase.
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