According to reports, around 73% of millennials have spent money they didn’t have to avoid FOMO. Moreover, 60% of people have purchased something within 24 hours just because of FOMO. In addition, 69% of Americans have experienced FOMO, with social media channels being significant contributors. It is clear from the statistics that FOMO or fear of missing out is a strong driver of purchase decisions. This fact can be used by the companies to increase their sales and conversions.
You could be a small business owner or a marketer, but how you can take advantage of the fear of missing out (FOMO) psychology will affect your sales greatly. In addition, FOMO being a determinant factor of consumer behavior in the aspect of technology and social media nowadays, it is necessary to include it in your marketing mix. Creating fear of missing out among your audience is much simpler than it used to be. Social media is becoming more popular, in social media people keep on showing their lives, and there is always something happening that others may feel not being part of. It leads to an atmosphere of urgency and competition which causes consumers to buy impulsively. This article covers everything you need to know about using FOMO to boost your sales.
Understanding FOMO Marketing
What is FOMO marketing?
FOMO is a psychological term that stands for Fear of Missing Out hence the uneasiness people get when they think that others are experiencing something beneficial that they are not. In marketing, FOMO is a strong instrument of creating the sense of immediacy which makes the consumer at once act because of the fear of missing out on something that someone else has and which is pleasant for FOMO is not more than a form of privation.
Fundamentally, FOMO marketing capitalizes on the human characteristic to belong, to keep up with what is going on and to extract the most from available opportunities. It exploits the time-bound characteristic of some offers, special bargains, or unforgettable deals that may not be available in the future. This approach is used most of the time in email marketing, social media campaigns, and e-commerce platforms, where scarcity tactics are applied, for example, limited stock indicators, countdown timers, or special edition products, in order to create a feeling of urgency.
Nonetheless, in order for FOMO marketing to be successful, it is imperative that it is done with accuracy and finesse. This strategy abuse leads to consumer skepticism and subsequently discredits the brand.
Psychology behind FOMO
It indicates fear of the person which comes when a person feels that he might be missing rewarding experiences that others are enjoying. Nowadays this trend is not just an online phenomenon but the social networking tactics being widely used have accentuated the condition. From a psychological perspective, FOMO is primarily driven by two fundamental human needs: the need of belonging and the need for inner satisfaction.
Maslow’s hierarchy of needs, he framed this concept as “the drive to belong,” which refers to a fundamental urge to be an integral part of a group or social network. As when people feel that others are leaving them in the cold when others participate in activities or experiences without them, they are triggered by the feelings of exclusion and isolation.
However, the sense of self-esteem is associated with our perception about ourselves and personal worth and value. In such cases, observing others that are actively involved in the activities that seem to be fulfilling, we start to judge even our lives and this is how our self-esteem is affected. FOMO, as such, is not far from the psychological phenomenon known as loss aversion. This notion postulates the fact that people might perceive a loss more adversely compared to acquiring a similar gain.
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How does FOMO influence consumer behavior?
Fear of missing out and consumer behavior are linked with each other. Marketers have always been aware of the power of FOMO as a stimulus for consumer behaviors and applied it to create a need for use or scarcity by their products or services. In case of the FOMO, consumers normally tend to make impromptu buying decisions. The same product might be viewed by them as very exclusive or limited edition which is another factor that influences the perception of the customer thus the product also has a greater value.
Also, the sociological pressure of FOMO might affect the consumer choice creating dependency. In modern society the consumer lives in such a way that he or she constantly shares their life on social media, and consumers may feel they need to follow the trend, buying products or engaging in experiences that are shown to be attractive or prestigious.
FOMO can also be a kind of comparison shop, in which customers constantly look for the best decorations and discounts, for fear of thinking that they’ve missed a better offer. This can bring out an increased rate of spending and purchasing, as well.
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