Create motivating and effective learning environments and experiences.
Influence consumer behaviour and choices to drive business growth.
Motivate action and increase the perceived desirability and value of actions, goals, experiences and rewards by introducing obstacles and constraints
“Tom had discovered a great law of human action, namely, that in order to make a man covet a thing, it is only necessary to make the thing difficult to attain.”
Scarcity is the principle that makes us value things more when they are limited—whether they are physical items, time, or opportunities. We tend to desire what is rare, hard to obtain, or running out, which increases our motivation and focus.
Scarcity draws our attention to what’s limited, making it seem more valuable. This isn’t just about material goods—time, relationships, and opportunities can all feel scarce. For instance, have you ever noticed how you conserve toothpaste when the tube is nearly empty?
While scarcity can create urgency that leads to poor decisions, it can also drive creativity and make our achievements feel more rewarding.
In games, for example, overcoming obstacles is what makes them fun.
In life, time is the ultimate scarce resource, reminding us to live meaningfully.
Scarcity can be a powerful tool when used thoughtfully.
Traveling sites like Booking.com and Agoda display the number of rooms left and signal high demand (also note how those cues stand out and thus the obvious element to look at).
Quantity-limited or supply scarcity is thought to be more effective than time scarcity because it triggers a sense of competition among consumers and the end of the supply is not predictable, depending exclusively on demand rather than time.
Two more scarcity techniques can help us drive behaviour.
The first involves limiting access to content, opportunities, and/or benefits to people who meet certain requirements (either temporarily or permanently). In its early days, Facebook restricted access to the site to only Harvard students, and then gradually granted access to students from other Ivy League universities, all universities in the United States, and then eventually opened it to the entire world. More recently, the social audio app Clubhouse has increased user acquisition with an invite-only strategy, where you need an invite to be able to access the app.
One of the reasons scarcity has become the norm both in the physical and digital world, is because it is relatively easy to design for, especially when the techniques involve limiting tangible resources or restricting access. However, there are less intuitive ways of leveraging the scarcity bias.
Not only we can limit the number of supply or create constraints through requirements. We can also limit the number of times a user can perform an action. This tactic is widely used in game design (e..g, limit number of lives) to create a sense of scarcity and increase user engagement.
One example of its implementation can be observed in the popular professional networking platform LinkedIn. LinkedIn limits the number of monthly invites a user can send to their network to like their page.
By imposing this limit, LinkedIn encourages users to choose their invitations carefully, selecting individuals who are more likely to engage with their content.
This leads to a higher quality of user interaction and more meaningful connections.
Additionally, the monthly refill of invitation credits creates a natural incentive for users to return to the platform regularly, as they look forward to the opportunity to invite another set of connections.
Highlight limited availability of products, services, or features to increase their perceived value and desirability
Traveling sites Booking.com and Agoda display the number of rooms left and signal high demand to create a sense of urgency to complete a transaction.
Offer exclusive benefits, privileges, or content to a select group of users, creating a sense of exclusivity and prestige (e.g., invite only program, first-come-first served).
The social audio app Clubhouse has increased user acquisition with an invite-only strategy. Similarly, Facebook became more desirable by restricting access.
Create a limit on the number of times a desirable action can be performed, increasing its desirability, fostering a sense of scarcity, and enticing users to crave more, leading to repeated engagement and return visits.
LinkedIn limits the number of monthly invites users can send, encouraging quality connections and enticing return visits as credits refill.
