TL;DR – Leveraging scarcity in SaaS can work like a magnet….if done genuinely

Scarcity is an ingredient we often overlook when it comes to pricing.

Referring to Jonathan Starks’ Max Price formula, he points to three essential ingredients: (Buying power * desire) / available options. 

When it comes to ‘available options,’ we often think about ‘the competition’ – because, ultimately, that’s what a customer can choose from, right?

• But what if your prospects don’t even look at the competition? 
• What if they have already made up their mind about your solution?
• What if they’re already a happy customer that just wants to expand?

In that case, throttling ‘Available options,’ i.e., introducing elements of scarcity, can be an instrument to create differentiated AND desirable value for your customers.

Personally, I am not a big fan of scarcity through time-limited offers. But I am a big fan of genuine elements of scarcity that increase value, quality, or experience, f.ex:

• Getting access to an exclusive group of peers
• Giving exclusive access to experts within your company
• Becoming part of an early access program to new features

Leveraging scarcity the right way can accelerate the number of advocates for your SaaS suite because it feels special and a privilege to be supported in this way. 

So my question for you to reflect upon:

What scarcity options would your customers stand in line for beyond the everyday use of your product? What if you’d make that a premium limited-available offer?

 

Be Remarkable

 

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