Using scarcity in brow business (research results)

1. The objective and the results

This research project has undergone three stages, with the fourth in progress. Our team at Powderbrows.io sought to dig deep into the role of scarcity in marketing for Powder Brows, Hairstrokes, and microblading. While scarcity is a widely employed tactic, its effectiveness can vary. Therefore, our primary aim was to pinpoint the specific conditions under which scarcity effectively drives results in the brow business.

Scope of Research and Criteria

We sourced our primary data from two distinct timeframes: the "pre-Covid" years of 2018-2020 and the period from 2020-2023. Our study scrutinizes more than 920 social media campaigns focused on offering brow services and training, with scarcity as a principal or secondary element to boost conversion rates. Geographically, our data encompasses 24 countries, including most of the largest EU countries, the United States, and the United Kingdom.

The core demographic groups analyzed were women aged 25-34 (making up 42% of the data), followed by women aged 35-44 (26%), and then women aged 18-24 (13%). To gain further insights into consumer behavior, we also conducted 433 interviews with participants of these campaigns. We explored their motivation to engage with specific campaigns and their resistance to others. The results, it can be confidently said, were universally consistent.

The Result: Scarcity Works Best in Specific Types of Campaigns

While it may not be a revolutionary finding that scarcity is effective, the devil is in the details. Implementing scarcity in brow business marketing isn't as straightforward as one might initially think. Let's delve deeper to understand the nuances.

2. Employing scarcity in marketing

Limited Availability

One of the most impactful ways scarcity is utilized is through announcing limited time slots in an artist's calendar. Artists typically share this information in social media posts to prompt immediate action from potential customers. The idea is that people will rush to secure the available slots. This concept is equally applicable to training sessions or webinars. This tactic is often used when there is limited availability and an item or service is about to be "sold out.”

Deadline-Driven Offers

Another prevalent method is the use of deadlines. In such campaigns, an offer—such as discounted gift cards—is available only until a specific cut-off date. Some campaigns employ reminders and countdown clocks to drive home the urgency. This approach can also be adapted for early-access promotions, where better terms are available only until a specific time.

Exclusivity in Hierarchy

Often, this multifaceted approach primarily targets a person's sense of status. For instance, an artist might offer a "VIP client status" as a reward for repeat business. Alternatively, an academy might establish a hierarchical structure, where each ascending level comprises a smaller, more exclusive group. These complete statuses are then marketed as aspirational goals, encouraging clients to aim for them. The same principles extend to memberships and co-promotional arrangements. For example, obtaining a certain "limited status" with a brow artist could grant the customer special privileges or better terms from a third-party partner.

Combined Scarcity

Naturally, multiple scarcity tactics can be amalgamated for more potent campaigns. Often, campaigns using scarcity will leverage it on several fronts. A classic illustration of this is the "model search" campaigns commonly initiated by emerging artists. First, model slots are scarce, so the artist looks for only three models.

An additional layer of scarcity can be created by selectively sharing this opportunity through private messages before the public announcement. This selective dissemination can heighten the offer's allure, sometimes increasing its attractiveness by over 200%. However, as with any other scarcity strategy, it must be executed correctly and in the appropriate context to be effective.

3. When scarcity works

Freshness Is Vital for Limited-Item Campaigns

For campaigns where the scarcity relates to the number of items rather than a deadline, the timing of when an item gains its "scarce" status is critical. For instance, if an artist offers a limited number of model seats or the last available time slots, the average likelihood of people responding to that offer declines significantly as time passes. Specifically, the odds dropped over 52% on the second day compared to the first, and an additional decline of almost 20% after 48 hours. Although factors like the item's price and the campaign's duration can influence this drop, these variations aren't substantial.

What this suggests is that these types of offers lose their appeal quickly. If an artist's budget for such flash offers isn't aligned with this reality, these campaigns may prove ineffective. As a practical guideline, nearly half the campaign budget could be spent on the first day, 30% on the second, and 20% on the third day. Extending such a campaign over a week would be counterproductive, as it contradicts the psychological tendencies of potential customers.

Reverse Effect in Deadline-Based Campaigns

Interestingly, campaigns with a deadline show a reversed behavior pattern among potential buyers, and the divergence is even more pronounced. When a campaign offers a deal, such as a discount for an online training course or a seasonal gift card, available until a fixed deadline, the following pattern generally emerges: 15-20% of conversions happen when the offer is first announced, a negligible amount (5-10%) occur during the time the offer is available. As the deadline approaches, there's a significant spike in conversions (around 75%).

This pattern indicates that the budget allocation for such campaigns should correspond to this trend. Distributing the budget evenly throughout the offer period would be a missed opportunity. Most of the budget (50% or more) should be focused on the period immediately preceding the deadline (48-0 hours), especially the last 12 hours, to fully capitalize on this behavioral trend.

Believability in the Possibility of Scarcity

One general aspect that can significantly diminish the effectiveness of a scarcity-based campaign in the brow business is the perceived likelihood that the item or service could genuinely be scarce. Our research identifies two criteria that enhance the effectiveness of scarcity in this regard: how tangible the low item is and the total number of items sold. Let's give a concrete example to understand this better.

At one end of the spectrum, we have tangible items with limited stock, like PMU (Permanent Makeup) machines. When only two units are left, and an offer is made, there are no barriers to potential buyers believing the item could be scarce. This is because if both machines are sold, no more will be left.

Conversely, when scarcity is haphazardly applied to services like joining a mailing list or attending an online seminar with many available seats, it can backfire on the marketer. This is particularly true among consumers with higher purchasing power, who generally possess better cognitive abilities to analyze situations. For instance, a substantial portion (potentially 10-20%) of the target audience indicated they didn't chase because they felt manipulated by artificial scarcity. Meanwhile, many of those whose buying motivation was positively impacted by the scarcity tactic said they couldn't afford the item.

The takeaway is simple: for higher-priced services or items, individuals with the means to purchase are less likely to fall for unrealistic scarcity tactics. Examples include claims that online training or large event seats are "sold” out" or” digital products are "end” ng in stock." Ma" keters should think twice before adding such elements to their campaigns. Casually appending messages with phrases like "lim” ted seats only!" at” the end of every marketing communication might not be the best approach.

Probability of Competition

Another factor contributing to the success of scarcity-based campaigns in the brow business is the potential buyers in the actual competition—that someone else might snatch up the limited item, solution, or appointment time. Specifically, two criteria on social media can create this perception: a) public evidence of engagement with the campaign, visible through likes, shares, comments, and views, and b) certain offered items becoming unavailable during the campaign. If neither condition is met, the impact of scarcity diminishes, potentially making the campaign counterproductive.

Let's use two examples from our study. Suppose an artist with a large following offers five model seats on Instagram or Facebook. If the post garners a two-digit number of likes, receives some comments, and includes a declaration from the artist that one or two slots are already filled. The offer is recent; the likelihood of an interested potential buyer reaching out to the artist typically increases by 50-200%. In this scenario, scarcity works to the artist's advantage.

On the other hand, let's say an artist has a small following post about "last” available booking times," but” the post receives only a single-digit number of likes, no comments, and shows no signs of competition. In this case, the scarcity tactic fails to create a positive impact. Worse yet, if a potential customer scrolls through the feed and sees similar posts—especially those offering the exact "last” available times"—it” raises red flags. This kind of situation can make scarcity work against the artist. Potential customers who might have otherwise reached out may abandon the idea altogether, associating the lack of social proof with suboptimal service quality or a lack of popularity for the offered solutions.

Next Available Option

Another factor influencing the effectiveness of scarcity-based campaigns is the perception of how long the product or solution will remain unavailable. Based on interviews with customers who reacted to certain scarcity-related offers and ignored others, we can draw two important conclusions.

Firstly, the impact of scarcity can be 36-40% more potent in the brow business when there's a lot of uncertainty about when the "sca” city period" wi" l ends. In other words, if the artist specifies when similar conditions for acquiring the item, solution, or product will next be available, it amplifies the scarcity effect.

Secondly, the longer the item remains unavailable, the more impactful these announcements become. The pinnacle of inducing scarcity is to announce that an item will be "una” available forever." For” example, if the artist declares this will be the "last” ever" ti" e, a particular solution is offered at a reduced price. The longer this period of unavailability, the more influential the scarcity tactic becomes. If this period is sufficiently long to influence the decision, the scarcity effect can skyrocket by 300%.

As we've emphasized in numerous articles, it's crucial to note that the artist must adhere strictly to these scarcity conditions. Extending deadlines or making exceptions after the fact undermines the scarcity tactic and turns it against the artist.

Overall Context - Scarcity of Scarcity Campaigns

A final criterion affecting the success of scarcity campaigns relates to their frequency. When scarcity campaigns account for less than 20% of the overall time an artist operates during a specific period, they are rare enough to enhance the scarcity effect in terms of sales. However, if the artist uses scarcity tactics for 50% or more of the overall operational time, the effectiveness of such campaigns diminishes. In this case, even if all other factors are met, overuse of scarcity turns counterproductive.

5. Conclusions

Effectively leveraging scarcity in the brow business, including Powder Brows and microblading services, can be an asset or a liability—much depends on the implementation.

Firstly, the type of scarcity impacts spending strategy. If scarcity is based on item availability, focus most of your budget on the initial announcement to capitalize on the heightened interest. In contrast, if scarcity is deadline-induced, allocating the bulk of your budget toward the campaign's final moments is advisable.

Secondly, more innovative customers generally have more purchasing power and are more skeptical about digital scarcities. For example, they are less likely to believe that virtual seats can fill up or digital items can run out. Therefore, exercise caution when slapping "limited availability" tags on marketing messages aimed at this demographic.

Thirdly, scarcity is more persuasive when customers believe they are competing for scarce resources. Social media engagement can serve as a strong indicator of this belief and amplify the effectiveness of your scarcity campaign.

Finally, the effectiveness of scarcity-related offers increases when customers know when the next similar campaign will occur. This is especially true if the gap until the next offering is substantial, with the ultimate scarcity being an item marked as "last time available." Scarcity is more effective when used sparingly, ideally accounting for less than 20% of your operational time.

Additionally, all sorts of "scarcity campaigns" can serve in the utmost positive way as tools for "hard-close," meaning that hesitant potential customers are put into a situation where they must make a choice. Although it results in some customers not buying, it clarifies the actual demand for the artist.

Using scarcity in brow business (research results)

"Scarcity tactics in the brow business are widely used, but their effectiveness isn't as simple as it seems. Sometimes, these tactics work well, and others may not align with an artist's long-term goals. This article explores accurate research findings on using scarcity in the brow business."

1. The objective and the results