⛔️ The Sold Out Strategy
Hello! Adam Thornhill here. ‘The Podcast Guy’ saving you 10 hours a week.
Enjoy the 126th Podup, with special thanks to ChatGPT Consulting.
Today, we’ll dive into the best insights and ideas from Nudge Podcast.
Imagine increasing sales without adding more products. That’s the magic of the ‘Sold Out’ strategy. Thomas McKinlay explores this intriguing approach, where scarcity and social proof combine to create a powerful sales driver.
Being sold out isn’t all bad
Displaying a sold out product or SKU is a powerful technique that you can use to display social proof. The effect of this in past experiments has been very big, with sales increasing up to 31%.
The ideal proportion of how many products or options to show as sold out is 10-30%. You want to show proof that a lot of people want your product, because when a lot of people want a product, others want it too.
But if you show too many sold out options, this starts to backfire. This is an effect called psychological reactance. People feel like you’re constraining their choice so they leave and buy from a competitor.
Thomas McKinlay
Why it matters
The sold out strategy can be applied even more granularly. For example, showing a specific color of a product as sold out creates a sense of scarcity, making the available colors seem more desirable.
You can extend this strategy to items or product options that are not yet available. By leveraging a waitlist for these sold out items, you can gauge customer interest and support your product roadmap decisions.
Next steps
Analyze your roadmap. Identify future products or variants to display as sold out, keeping the ideal 10-30% range in mind. This can even work in software if you apply this to a service tier.
Capture customer interest. Set up email waitlists for sold out products to measure customer interest.
Segment your audience. Understand what types of customers are interested in your sold out products.
Engage with your waitlist. Ask people about their pain points, how they’re currently solving this, and why they think your sold out product can help.
Inform your launch strategy. Tailor your messaging and go-to-market strategy based on your insights from steps 3 and 4.
Your thoughts?
Thanks to ChatGPT Consulting for making this post possible…
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