Attract Your Ideal Customer with a Limited Edition Marketing Strategy
People don’t like it when things are scarce — unless they obtain the scarce thing for themselves. For businesses, offering a limited edition product and deploying a limited edition marketing strategy is one of the most effective ways to use scarcity to incentivize people to buy.
This article will uncover why scarcity is such a major selling point and how to use it to your advantage. We’ll also explore some of the top ways to use a limited edition marketing strategy to generate sales and revenue for your company.
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First, let’s cover why scarcity is so effective.
Why does your business need a limited-edition marketing strategy?
The rule to rule all rules in economics is supply and demand. When you’ve got a significant supply of a good or a service, the cost of it goes down. Likewise, the inverse is true. When something is in short supply, the price increases.
This is where scarcity comes into play. If you communicate to your customer base that a particular product is low in supply, it does two things that are equally advantageous for your company:
#1. Increases demand
The scarcity mentality is a significant driver of human behavior and plays an outsized role in economics. When an item is perceived as scarce, it appears more valuable and generates more interest.
If customers think a valuable item is challenging to obtain, they’ll be more likely to buy it just to reduce the discomfort that scarcity often induces.
#2. Increases price
When an item seems highly valued and sought after, customers are less likely to balk at a higher price tag. When you induce a sense of scarcity with a good or service by making it a limited-edition, it makes it easier for you to command a higher price.
What types of brands can use a limited edition strategy?
The cool thing about limited edition products is that you don’t have to operate a luxury brand to use them to your advantage.
We could easily argue that any company can use the limited edition strategy. And if you look, you’ll find a wide range of industries offering limited edition products, from food and beverage brands to cosmetics, car companies, and tech titans.
Another significant advantage to this particular strategy is that businesses of all sizes can use it. You also don’t have to be a legacy company. In fact, marketing your items as exclusive can help you obtain legacy status with your customer base.
With a limited edition marketing strategy, you can generate interest and increase online foot traffic to your store.
This all sounds great. So what’s the downside?
Every rose has its thorn, including an effective marketing strategy such as this one. So before you begin drafting your plans, you’ll want to consider a few caveats to the limited edition strategy.
For starters, it’s not a surefire way to success. Sometimes, customers can have a love-hate relationship with exclusive products. You also have to be careful that you’re not generating unnecessary and, frankly, stressful feelings of urgency around your offerings. Too much of a good thing is never a good thing.
Additionally, unnecessary urgency can create a massive, inflated reselling market for exclusive items. Also, it can discourage customers from even trying to obtain your products.
So, use exclusive, limited-edition items strategically, so you get the benefits without alienating customers.
- Less is more with limited edition products
- Use this marketing and brand-building technique strategically
- Do your research
- Be careful to strike a balance between scarcity and demand
Look into your customer data and analytics on what has sold well in the past. This will help you strike that delicate balance between scarcity, piquing customer interest, and driving demand.
Surefire rules for quick wins with a limited-edition marketing strategy
When crafting your limited edition marketing strategy, keep these rules in mind for success:
- Use limited edition campaigns to generate desire — With a limited edition campaign, you can show a different side to your brand and connect with your customer base in exciting, new ways.
- Stay authentic to your brand’s true personality — A limited edition campaign must be used to generate short-term buzz around your brand. At the same time, use this opportunity to build long-term relationships with your customers.
- Consider collaborating with influencers — Limited edition marketing strategies offer you the chance to work with influencers or similar brands in your industry. For customers, this gives them an exciting new experience. Plus, it can build existing customer loyalty and grow your audience.
- Create connections — Your limited edition product should spark a connection with your customers around a specific need or occasion.
Limited edition marketing campaigns give you the unique opportunity to inject fresh ideas and creativity into your brand and product line. With a strategic campaign, you can create immediate excitement around the product launch, as well as build your brand’s legacy.
Without further ado, let’s get into the specific strategies you can use next.
Limited edition marketing strategies you can use right now
A thorough strategy must be the linchpin for any marketing campaign. And the same is true for limited edition marketing efforts. So here are our top limited edition marketing strategies you can deploy for your next marketing campaign.
#1. Determine your ultimate goal
So, before you create a limited edition product, you want to determine your ultimate goal because this will inform your strategy.
Here are some examples:
- A 25% increase in new customers
- Boost seasonal sales by 50 percent
- Generate increased buzz on social media
And so on and so forth. Then, once you determine your goal, look into which particular customer base will most likely help you reach it.
#2. Find your target customer base
Ask your team members, and comb through current market research and data. Remember to go through your social media and website analytics or email marketing lists to determine your target audience and the people you should focus your marketing efforts on.
- Research demographics data points
- Know what type of products are big hits with your target audience
- Find out how your target audience likes products packaged
Knowing where, or rather whom, to focus your efforts will protect your marketing spend and give you positive ROI. Plus, this will help you determine the overall strategy for how the limited edition item should be presented to your target market.
#3. Design unforgettable limited-edition packaging
On the 50th anniversary of the iconic Campbell’s soup can artwork from Andy Warhol, Campbell’s launched 1.5 million of four limited-edition soup can designs featuring the famous artwork. The cans sold out in just four days.
The bottom line is, limited edition designs convey a higher value because, essentially, they became a collector’s item. And this is particularly so with unique designs.
The famous brand Nike released a limited edition shoe with Kobe Bryant in the year of the dragon. The red box the shoes came in was shaped like a dragon’s head and was the same red shade as the shoes inside.
What was so special about these shoes was that the packaging resembled the product inside. It got people excited and gave them a hint of what was inside the box.
So when creating your limited edition marketing strategy, the packaging itself can be a significant driver of sales.
- Limited edition packaging gets people excited
- Unique designs are likely to generate substantial buzz
- Creative packaging forges long-term connections with customers
- Eye-catching designs breathe new life into a brand
Another bonus to visually enticing packaging for a limited edition item is becoming a collector's item. This can help your brand achieve legacy status. Companies in the fashion and apparel industry can substantially benefit from limited-edition packaging.
Don’t limit your limited-edition marketing ideas.
You don’t have to limit yourself (pun intended) to just products to get the benefits of limited edition marketing. Ultimately, limited edition campaigns boil down to what your customers want and effectively tap into their desires.
Chances are, you’ve seen service-based companies engage in limited-edition campaigns. For example, a restaurant may only offer a particular dish at a specific time of year or day of the week. Likewise, a cleaning company might only provide a select package during a particular season.
You can run many simple campaigns successfully for a limited edition offering. For example, if you own a brick-and-mortar store in addition to online assets, you can take a product and make it available in-store only. Or only stock a set number of units for a popular item to drive increased sales.
Get creative and let your imagination soar. Study your customers and product trends with past success and use your knowledge to inform your limited edition strategy.
Ready to get started? Reach out to us today. Schedule your free consultation, and we’ll be happy to talk about your limited edition strategy that can boost your sales and grow your customer base.