Already at 11:30 am I started feeling the thrill. At 11:55 I went on Gilt.com and started refreshing the page. Finally it happened. Exactly at noon, the site started another sale of luxury brands.
I immediately went browsing with full force—my chance of owning an Ermenegildo Zegna, for 70% off, or just for a few hundred bucks. Apparently, however, I wasn’t the only one there, and within minutes all that was left was empty online shelves.
Gilt Groupe is an invitation only site that sells designer brands in up to 70% off their retail price. Each sale lasts for 36 hours and is then removed from the site. The sales are first come first served, and the number of items is limited, so typically many items are sold out a short time after the sale begins.
What has made a calculated guy like me go wild and be willing to spend hundreds of dollars on a whim on items that I am not even sure that I am going to wear? What is that spell that Gilt casts on its members that pushes them to spend? Gilt is using three powerful techniques that can help any advertiser get better performance and increase sales on his or her campaign:
- Perceived value – As the famous phrase of many infomercials go: “you’re not spending, you’re saving. Gilt provides their members the sense that they are getting a great deal that they cannot get anywhere else.
- Time limit – Buy now or be silent forever. As each sale is for a limited time, you are constantly under pressure to make the purchase immediately.
- Value of scarcity – There is limited stock from every item. Items are also sold out pretty quickly. Therefore, start practicing the art of browsing without blinking. If you like a specific item, you need to make a decision on the spot, or it’s gone.
When combined, all of these techniques push even the most astute consumer to an online shopping spree. Try any combination of these techniques in the message of your ads to push users to action now, and you too should be able to get users to pull out their credit card.
Ariel Geifman | Principal Analyst, MediaMind Research