Buy-Now Effect

Definition

The Buy-Now Effect is when a sense of urgency is created for a customer, compelling them to make an immediate purchase. This effect is triggered by various tactics such as exclusive discounts, limited stock notifications, or other promotional deals.

Examples:

1. Amazon: Uses the Buy-Now Effect throughout its website. Displaying limited-time deals, low stock levels, and also offering free shipping with a minimum purchase.
2. Booking.com: Displays messages like “Only 1 room left!” or “Last chance to book!” to encourage visitors to make a reservation before the offer expires.
3. Udemy: Offers time-limited discounts on courses by displaying a countdown timer that creates a sense of urgency and scarcity.
4. Expedia: Displays limited-time offers and highlights the number of people currently viewing a particular hotel or flight.
5. Zalando: The fashion retailer also uses urgency by displaying messages such as “Only a few left!” or “Last chance to buy!” to encourage visitors to make a purchase before the product sells out.

Research

A study published in the Journal of Consumer Research found that creating a sense of urgency can increase the value of a product and motivate consumers to take action. Consumers who experienced a sense of urgency were more likely to purchase a product at a higher price point.

In addition, research conducted by ConversionXL, found that urgency and scarcity tactics can increase conversion rates by as much as 332%. The study showed that when businesses used urgency and scarcity tactics, customers were more likely to complete their purchases.

Summary

The “buy now effect” is a conversion marketing strategy that aims to encourage customers to make an immediate purchase. It involves creating a sense of urgency or scarcity to prompt customers to act quickly. It can be achieved using persuasive language, clear call-to-actions, and visual cues that draw attention to the purchase button. Implementing the buy now effect can help businesses increase their conversion rates and drive more sales.

Resources:

1. Psychology of Scarcity – How to Apply It in Marketing. This article on Hubspot provides an overview of the psychology of scarcity and how to also use it in marketing.
2. Conversion marketing – Glossary of Conversion Marketing.
3. Over 300 tools reviewed – Digital Marketing Toolbox.

Credit:

Buy icons created by Freepik – Flaticon