How to use FOMO effectively in your business

Ever came across a product you’ve always wanted but it was on a limited-time offer with only a few left in stock? How about a fitness blog giving you a rare chance to sign up for an exclusive membership club with extra benefits and perks that aren’t in their regular membership?

You probably started feeling anxious and thinking, “I need to get that before it’s gone” or “I wish I was part of this”. These are just examples of FOMO.

In this post, we break down what it is and how your startup can use FOMO marketing to drive sales and increase conversions.

What is FOMO?

FOMO is short for ‘Fear Of Missing Out’. It’s a psychological phenomenon where people are afraid of being left out or missing out on something exciting, trendy, or beneficial. The feeling of losing out on a golden opportunity is what causes many of us to make impulse purchases or to act now rather than later to avoid regret.

Check out these interesting FOMO stats:

1. Facebook is the platform mostly used to create FOMO campaigns, with 72% of FOMO campaigns found on the social network, followed by Instagram (14%) and Twitter (11%). [Financesonline]
2. 69% of millennials experience the most FOMO.
3. In general, the posts and events that create FOMO among millennials the most are travel (59%), events and parties (56%), and food (29%). (OptinMonster)
4. Around 56% of all social media users experience FOMO. (TrustPulse)
5. Around 60% of millennial consumers report making a reactive purchase after they experienced FOMO, often within 24 hours. (OptinMonster)
6. 41% of millennials complete quick mobile-device transactions owing to FOMO (FortuneLords)

Source: FinancesOnline

Why is FOMO effective?

Humans are social creatures. We have an innate desire to belong, to be in the know, and to avoid regret. FOMO taps into these emotions, encouraging people to take actions they might otherwise procrastinate on or skip altogether.

How is FOMO used in marketing?

FOMO marketing uses strategies that evoke feelings of urgency or the fear of missing out on something. The goal is to prompt you to take immediate action, like making a purchase or signing up for something.

Reviews also have a role to play in FOMO marketing. That’s why it’s a big mistake to underrate the impact of reviews on your business.

OptinMonster reports these stats:

• Product reviews are 12X more trusted than product descriptions and sales copy from manufacturers.
• 92% of online consumers look at a product review prior to making a purchase.
• Customers could spend 31% more at a business with great reviews.
• Positive reviews encourage 68% of consumers to use a local business.
• 41% of consumers will be tempted to purchase a product with as few as 1 to 4 reviews.

Examples of FOMO Marketing Techniques

1. Limited-Time Offers: “Sale ends tonight at midnight!” This creates a sense of urgency, making people feel they’ll miss out on a good deal if they don’t act quickly.

2. Exclusive Memberships: “Join our VIP club for exclusive deals and content.” The allure of being part of an exclusive group can make people want to sign up.

3. Stock Alerts: “Only 5 items left in stock!” This makes the product seem more scarce and valuable, pushing the customer to buy before it’s gone.

4. Social Proof: “10,000 people already bought this!” or “Your friend Sarah just purchased this.” Seeing others take action can make you feel like you’re missing out if you don’t follow suit.

5. Live Events and Webinars: “Limited spots available! Reserve yours now. This won’t be recorded. It will go away forever!” The idea of a one-time event creates a sense of scarcity and urgency.

While FOMO can be a powerful marketing tool, you need to use it ethically. Overusing FOMO or creating false scarcity can shake trust in your brand.

So what strategies caught your eye? Have you already been using FOMO in your marketing? How has it worked for you?

I am a digital marketing expert and tech journalist. As Senior Writer and Editor at EarlyNode, I shine the spotlight on SaaS startups and marketing concepts such as product-led growth and product marketing.

As an African enthusiast, I love to see African tech startups flourish through compelling storytelling and digital strategy. When I’m not crafting insightful content, I’m plotting football tactics on Football Manager.