What is FOMO and How to Apply It in Marketing

Do you know what FOMO is?

Because even if you don't know it, chances are you have, especially when you're looking to buy something.

In today's digital era, “FOMO” or fear of missing out or if in Indonesian means “fear of missing out”, is a common fear shared among consumers, marketers and entrepreneurs about missing out on a huge opportunity that is very trendy and hot.

In this article we'll cover what FOMO is, the different types of FOMO that exist in marketing along with some examples of effective use cases you can use in your marketing.

What is FOMO?

Fear of missing out is a fear or anxiety that something interesting or exciting might happen somewhere that leads to a compulsive desire to experience it or be there, motivated not by what you will gain but by what you may lose.

FOMO is social anxiety characterized by a desire to know and stay connected to what other people are doing and what is happening around you.

The term was coined in 2004 by Patrick J. McGinnis in an article in the Harvard Business School magazine, The Harbus.

However, the phenomenon is as old as word of mouth marketing. Just like today, the fear of missing out was previously fueled by word of mouth, newspapers, and other media. Social media is just the catalyst these days.

Using FOMO in the Marketing Process

Psychologists are becoming more aware of what FOMO is because of the influence of social media on modern lifestyles. A PEW research study found that three quarters of Facebook users check their accounts daily, and one of the most important drivers of Social Media engagement is the anxiety associated with loss.

However, while FOMO can sometimes have a negative impact, it can also inspire people to try new things and explore new opportunities.

FOMO marketing uses this upside of FOMO to increase demand and sell the latest trends.

By highlighting the popularity of a product and limiting its availability, marketers can put the product in high demand.

Along with this, they can shorten the average customer journey duration, reducing their overall CPA.

How does FOMO work in the marketing process

FOMO Marketing combines three powerful psychological effects: Social Proof, Urgency, and Scarcity.

A number of high-level studies have shown how our decisions are shaped by the people around us.

For example, in their “Room With a Viewpoint” study, behavioral scientists Goldstein, Cialdini, and Griskevicius demonstrated that social norms can have a greater impact on our behavior than rational appeals.

Similar research has highlighted an effect known as “sheer urgency”, which describes how our priorities change more significantly when tasks have short deadlines than they do when they are critical.

The Sheer Urgency Effect helps explain why people are more productive when they break down one large task into many (more urgent) smaller tasks.

The effect of scarcity on the value of an item was illustrated in another well-known experiment conducted in 1975. During the experiment, psychologists Adewole, Lee and Worschel asked participants to rate the cookie desirability of one of two jars (one that was full and one that was almost empty).

A sample of 200 undergraduate students rated those jars that were nearly empty as much more attractive than those that were full.

FOMO marketing uses Scarcity to increase demand for a product and combines this effect with our instinct to conform and our tendency to prioritize imminent deadlines.

Because it puts these psychological effects together, FOMO is a very powerful marketing tool.

Some FOMO Strategies in Business Marketing Process

About 69% of millennials experience a fear of losing. 60% of them make reactive purchases because of FOMO. More than half of people who use social media experience FOMO.

This makes FOMO an important topic among marketers.

But how can you devise an effective marketing strategy that capitalizes on the fear of missing out?

Simple, using the following strategy.

The Principle of Scarcity or Scarcity

From flash sales to limited stock to limited period offers and offers, the scarcity principle always fuels the fear of missing out and attracts more viewers/customers/consumers.

According to this principle, humans consider rare things to be more valuable than abundant ones. Scarcity creates a sense of urgency, triggers FOMO, and rouses people to action.

Network Effects

The network effect states that the value of a good or service increases when more people use it.

That is, an item or service will attract more customers if its value depends on the number of customers. Social media networks like Facebook, YouTube, Twitter, WhatsApp are some examples.

How do network effects trigger the fear of missing out?

The more people use the product or service, the more likely you are to try it or you'll feel left out.

Trigger

You're more likely to experience the fear of missing out when you hear a notification pop up on your phone than when there's no trigger.

Triggers come in various forms like emails, pop-up notifications, phone calls, word of mouth, etc.

A strong focus on trigger-based marketing strategies is beneficial if you plan to leverage FOMO.

Exclusivity

Exclusivity increases the pride of exclusive users and makes non-exclusive users long for the same benefits. This increases word of mouth marketing.

Many restaurants provide special discounts and other offers exclusively for their regulars which attract other customers to become repeat customers and experience and see what they are missing.

Be Explicit

Being explicit is about explaining the harm that users have to suffer with the aim of attracting more users. This method is more effective than telling them about the benefits.

Urgency

A FOMO marketing strategy is meant to create a sense of urgency for buyers and people to take immediate action for a product, deal, or opportunity.

Marketing messages are meant to be structured in such a way as to make buyers think they need to act fast or else they will miss out on a lot.

Some common calls to action commonly used to encourage a sense of urgency in FOMO marketing include:

Act now

Only (x number of ) remains

Time is very important

Hurry up before it's too late

Limited places available

This type of call-to-action message in FOMO marketing is meant to convey urgency and scarcity to encourage people to make a purchase.

Social Proof

Social proof in FOMO marketing is a way of using the experiences of others to showcase a product or service and provide further validation or “proof” of the product or service.

Humans are social creatures and we tend to make buying decisions based on other people's reviews and experiences.

If a particular product has a long list of reviews, customer feedback, or even video testimonials, people are more likely to make a purchase.

In general, people want to adapt and not miss trends or useful products and services.

FOMO in social proof marketing is very powerful in helping people make purchasing decisions, especially if the price of the product or service is much higher.

Deadline

Nothing creates a greater FOMO than a limited time limit.

If people feel they only have a certain amount of time to take action for a particular deal, sale, or opportunity, they are more likely to take action.

This is usually seen in certain internet marketing tactics which have a countdown for you to make a purchase of a product or else the deal or sale will expire. Very effective if you're marketing digital product or services.

Feelings about Missed Opportunities

FOMO marketing about missed opportunities is a common marketing tactic used to appeal to your emotions to get you to think about how you would feel if you missed a lot of opportunities or opportunities.

Common phrases you may see used in this type of FOMO marketing strategy include:

• Don't miss this amazing opportunity
• Grab it now for a cheaper price
• Get a cheaper price than others
• Take it now, or you will regret it later

No one wants to feel like they're missing out on a great opportunity or deal and you'll most likely see this type of advertising and marketing section around certain holidays when businesses advertise massive sales discounts.

FOMO Marketing Example

Another effective way to use FOMO in marketing your business is to know the behavior of your website visitors.

This can include things like

• Number of direct visitors
• Conversions that have occurred on your website
• Customer Testimonials
• The person who bought this item also bought this one

The right way to use FOMO in your marketing process should be subtle enough to grab people's interest and let them make their own decisions.

Below is a small list of 10 different FOMO marketing examples you can use.

• Place a deadline on a deal or offer
• Send time-limited email
• Show customer reviews and testimonials
• Prove that someone else made a purchase
• Use popular influencers in your marketing campaigns
• Show your low stock quantity
• Use the countdown on your product pages
• Offer limited free shipping
• Send exclusive offers to individual customers
• Create structured email sequences

These are just a few of the many different FOMO marketing strategies out there that can help you increase sales, spread brand awareness, and increase your overall marketing arsenal.

Conclusion

That's an in-depth discussion of what FOMO is and the various types of FOMO marketing that you can adapt to your marketing strategy.

As we have discussed, the essence of FOMO marketing lies in creating a sense of urgency in the minds of consumers. Your marketing campaign should instill a sense of loss by providing constant offers or social proof.

It should leave the lingering feeling that there is a constant race against time and if missed, show what the risk of losing them is.

Then if this marketing process has been successful, make sure you record all transactions that occur to find out the benefits your business gets.