At LeadGenerators we are well aware of the debate surrounding whether or not urgency is beneficial to a website’s performance and sales. Suggesting a holiday package is likely to sell out quickly and to ‘book early to avoid disappointment’ has almost become a cliché, but will often do better sales-wise than a deal without the implication that it is in strong demand. It is interesting to see that the marketing gurus over at Marketing Experiments have conducted some informative tests to see just what kind of impact urgency in online marketing can have on sales.
They discovered that by offering a saving of $100 if booking a place at their conferences by a certain date, average sales jumped by an astounding 992.68% during the three days leading up to the deadline. Another case study in the article refers to a DVD on child safety – initially demand was low (only 14 shipped), but upon mentioning there was an initial allocation of only 5,000 copies the number dispatched jumped to 768.
I admit that I found these numbers maybe just a little too good to be true, but the general message from them is that urgency sells. However, if this is true then I would like to add a few of my own comments before getting too gung-ho.
One important thing to avoid is overusing the tactic – if every holiday package on your site has a warning that it won’t be there for long, visitors will assume you’re exaggerating every time and your reputation will be damaged. Even genuine urgency can be dismissed as a promotional gimmick, so often a more subtle mention of low numbers will be more effective than banners announcing limited time bargains on every page of the site.
Within the travel industry, this is particularly troubling. There is no doubt that urgency in your sales pitch can seem tacky and off-putting if not done exceptionally well, and there is such a range of clients looking for holiday deals that a tactic which will appeal to one set will most likely alienate another. For example, a banner or email offering a ‘deal of the day’ on a bargain all inclusive package holiday to Greece will most likely ensnare a good many sales from families looking for a cheap break away, but can seem tacky and unprofessional to a wealthy couple looking for 5 star accommodation in the same region. If your site caters to both markets, there is a real risk of losing potential custom as well as gaining. In this instance, a simple understated mention of a discount when booking before a certain date could have a similar effect in terms of sales, without putting off the customers that the offer is not aimed at.
Urgency is certainly a powerful sales tool, capable of impressively enhancing a website’s performance. Often limited availability will make all the difference between someone booking instantly, or going away to think about it and not returning. While it’s a tactic we can’t always recommend because of the risks involved, the potential performance reward means it’s certainly an idea worth considering for websites in need of that temporary sales boost.
Travel, Cat Litter and Infidelity
Does Urgency Improve Site Conversion?
