1. Acquisition  >  Use Scarcity & Urgency

Use scarcity & urgency to reduce SaaS churn

Creating urgency for your software is a surefire approach to increasing conversions and scarcity helps with reducing churn because nobody wants to miss something that is perceived as ‘rare’.

● PERSUASION

OptinMonster

OptinMonster refers to 700,000+ websites that use their software and the number of visitors optimized counter on their landing page to create urgency.

Groove

Groove creates urgency by stating a big number of its landing page. It talks about 8000+ companies that are using Groove.

Prodpad

Prodpad doubled its conversion rate after it reduced its free trial duration from 30 to 14 days.

How to use the technique

  • Urgency and scarcity should be used in copy and headline. For instance, using words like ‘hurry’, ‘buy now’, ‘exclusive offer’, etc. will boost conversions. Read our free churn optimization framework to learn more about conversion optimization.
  • Add a countdown timer to highlight time left for the discounted price.
  • Use urgency in CTA. Use of appropriate words and button color (like red) will significantly enhance urgency and will persuade visitors to take action.
  • Use numbers in the headline. Using big numbers that represent the potential of your software and the benefit to the user will develop urgency. Make visitors feel what they're missing by showing digits.
  • Reduce the duration of the free trial. For instance, from 30 to 14 days. It is a known technique for increasing conversions.
  • Accept limited customers. It is used in ecommerce but you can use this technique to significantly boost conversions of your software. Set a specific number of customers you are accepting in a week (or a month) and clearly mention customers left on the landing page. It will work great to reduce churn.
  • Test conversions. Does your audience (or a specific persona) respond better to urgency or scarcity or both? Find the winning combination with conversion optimization tests. Our free churn optimization framework has all the information you need. 

Mistakes to avoid

  • Using it too often. Is your software always on sale? Do you have a countdown timer that never ends? Use scarcity occasionally.
  • Not setting start and end dates for limited time offers. When creating a discount coupon or reducing the price of your software, always add a start and end date so it actually ends. If it doesn’t end, customers won’t take your urgency and scarcity seriously.

Research evidence

Worchel, Lee, and Adewole conducted an experiment to understand how people’s perception of value is influenced by scarcity. They found that scarcity increases the perceived value of a product. When an item is scarce, people perceive it to be more valuable.

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Simply speaking, people love stuff that's scarce. Make your product harder to get improves overall engagement.


Related techniques SEE ALL THE TECHNIQUES >

Implement with our proven SaaS Churn Optimization Framework

Download a PDF with an exact process we use with our SaaS clients to research, define optimization opportunities and test.