Remember when at the beginning of the pandemic, groceries and toilet paper disappeared from shelves at lightning speed? We can still find videos online of fights over the last roll. It was scary to think there wouldn’t be any left, but we never really felt the shortage. That’s exactly how FOMO works. You’ve probably heard this term at least once, and if you haven’t come across it yet, we’ll make sure to refresh your knowledge.
Why does FOMO affect the consumer?
FOMO is not only a psychological phenomenon but also a marketing tactic that can be highly beneficial in e-commerce. The sense of urgency and the push for action make FOMO effective in e-commerce marketing. There are three main ways in which FOMO works:
- People purchase a product due to social pressure because they do not want to be left out and want to experience what others are experiencing.
- People buy because they fear missing out on a good deal.
- People regret missing out on a great opportunity to buy a good product and subscribe to newsletters to not miss out on offers in the future.
FOMO is an excellent way to increase customer loyalty, attract new customers, and most importantly, boost e-commerce sales. Trustpulse conducted a study on the benefits of FOMO, and the results are surprising even for those who have seen it all:
- 56 % of social media users admitted to experiencing FOMO (mostly people aged 22-37);
- 40 % of people spend money on unnecessary items once a year to showcase their purchase on social media;
- 48 % of millennials (currently aged 25-40) borrow money to keep up with their friends and not appear less affluent;
- 60 % of people actively make purchases solely because of FOMO when the offer lasts for 24 hours.
The age group most affected by FOMO is the aforementioned millennial generation. It has been observed that consumers, when faced with new social platforms, often succumb to impulsive emotional buying behaviour.
How to leverage FOMO opportunities?
FOMO is a powerful e-commerce marketing strategy that you should try to attract more potential customers! Here are a few examples of FOMO in e-commerce:
- Creating an artificial sense that the product may be sold out quickly. The consumer can also see that the product is recognised by other buyers (how many times the product has been viewed this week, how many people are interested in it now).
- Displaying the quantity available: if the quantity of products is limited, FOMO can be activated. By showing numbers indicating that there are few items left, the consumer rushes to buy what everyone wants (social product recognition).
- The use of countdown timers: encouraging haste / limited time offer is one of the most commonly used FOMO tactics.
FOMO is a great way to attract undecided consumers. The most important thing is to carefully consider the ways in which you will evoke the feeling of FOMO. And if you haven’t tried it yet, the best way to test is through testing.