FOMO – Fear of missing out

For sure, you must have come across and may be moved by one of such ads and taken action towards purchasing that product or service.

This is what is called FOMO.

FOMO stands for “Fear Of Missing Out” and it can be a powerful motivator in sales. When potential customers feel like they might miss out on a deal or opportunity if they do not act quickly, they are more likely to make a purchase.

In this post we detail FOMO in three parts.

• FOMO techniques used by brands
• How FOMO can influence prospect’s decision over available alternatives
• FOMO with Sales people

Part 1 –

FOMO techniques

In sales, FOMO can be created by emphasizing limited-time offers, exclusive deals, or by highlighting that a product or service is in high demand and could sell out soon. Social proof, such as customer reviews or testimonials, can also create FOMO by showing that others have already taken advantage of an offer or made a purchase.

 Some of the FOMO techniques used by brands –

1. Limited-time offers: Create a sense of urgency by offering a limited-time promotion or discount that expires soon.
2. Scarcity: Highlight that a product or service is in high demand or low in stock, which can create a sense of scarcity and encourage customers to act quickly.
3. Social proof: Use customer reviews, testimonials, or endorsements to show that others have already taken advantage of an offer or made a purchase. This can create a sense of FOMO and encourage potential customers to follow suit.
4. Exclusivity: Offer exclusive deals or access to a limited-edition product, creating a sense of exclusivity and encouraging customers to act quickly to take advantage of the opportunity.
5. Countdown timers: Use countdown timers to visually communicate that time is running out and create a sense of urgency.
6. Flash sales: Host a flash sale for a limited time, encouraging customers to act quickly to take advantage of the deal.
7. Early-bird pricing: Offer a special price or discount for customers who make a purchase early, encouraging them to act quickly to secure the deal.

How FOMO works in B2B sales?

FOMO can work in B2B sales, but it may need to be applied differently than in B2C sales. In B2B sales, decision-making tends to be more rational and less impulsive than in B2C sales, so FOMO tactics may need to be used more strategically.

1.One way to create FOMO in B2B sales is by emphasizing the potential benefits and ROI that a product or service can offer, and highlighting the risks of not taking advantage of the opportunity. This can help decision-makers understand the consequences of missing out on the opportunity, which can create a sense of urgency and encourage them to act quickly.

2.Another effective approach is to use social proof in the form of case studies or testimonials from other businesses who have successfully implemented the product or service. This can demonstrate the potential benefits and reassure decision-makers that they won’t be left behind if they don’t act quickly.

87% of sales opportunities contain either moderate or high levels of customer indecision. And it is toxic, as indecision increases, win rates plummet.

Harvard Business Review

FOMO examples –

B2C :

Limited edition watches, event booking closing by a date, Independence Day sale, like partnership with some other brand goods, black Friday sales, deal of the day(amazon) shipping waiver,EMI discounts, addons, same price, bigger space or time in ads, 2 more rooms available,etc.

B2B:

Addons from business partners(coupons),  free onboarding support, credit periods for limited time, continued high costs until a new solution is implemented, missing out ROI for a delayed decision, etc.

Part 2 –

How can FOMO influence the prospect’s decision over alternatives?

FOMO can be used to both push clients to decide quickly and to influence their decision-making. By creating a sense of urgency and emphasizing that time is running out or that an opportunity is limited, FOMO can encourage clients to act quickly to take advantage of an offer or opportunity.

At the same time, FOMO can also be used to influence the decision-making process by highlighting the potential benefits of a product or service and the risks of not taking action. By demonstrating the potential rewards of acting quickly and the consequences of missing out on the opportunity, FOMO can help persuade clients to choose a particular product or service over alternatives.

Sometimes a compelling reason alone is not sufficient for a buyer’s decision in such cases FOMO tactics definitely help. Communicating it the right way makes a great difference in a positive outcome.

Communicating the right Way –

1.       Scenario – Financial products sales

Instead of saying, we will be able to save you money on your taxes, we could say why pay more taxes than necessary and reduce your buying power?

 2.       Scenario – Advertising

Instead of saying, advertising increases your leads, we could say, no ads is equal to  less number of leads and is less revenue for the year.

3.       Scenario – saas product sales (HRMS)

Implementing now will save the cost for your HR function, instead say, if you don’t implement it now, you would lose this much saving per month until implemented.

Part 3 –

FOMO for sales people?

We should fear missing out on opportunities that we haven’t acted upon or identified or met. Hence, increasing outreach, better lead management and lead nurturing and closing using FOMO and right messaging is important.

Ethical & Transparent

FOMO techniques should be used ethically and transparently, without resorting to manipulative or deceptive tactics. Clients should always have access to accurate and complete information about a product or service, and should not feel pressured into making a decision that isn’t in their best interests. By using FOMO strategically and responsibly, salespeople can help clients make informed decisions that meet their needs and priorities.

Happy Selling!