By: Dr. James McFarland, Behavioral Scientist
In the hyper-connected digital landscape of 2024, the Fear of Missing Out (FOMO) isn’t just a trend; it’s a pivotal marketing lever that cannot be understated. When harnessed effectively, FOMO can significantly increase purchase intentions, especially when combined with social media marketing strategies. This week’s CMO Minute explores how FOMO impacts consumer decision-making and how brands can incorporate relevant psychological principles into their marketing campaigns to boost sales.
FOMO and the Psychology of Scarcity and Urgency
FOMO is rooted in the psychological principle of scarcity, where people place a higher value on something perceived as limited or exclusive. Studies suggest that the perception of scarcity increases promotion-focused behavior, pushing consumers from contemplation to action by offering them a sure thing in an uncertain world. Thus, when consumers believe that a deal is temporary or a product is in limited supply, it triggers an emotional response to purchase impulsively (e.g., “Having a bird in hand is worth two in the bush”).
Of course, FOMO isn’t just about limited stock; it’s about creating a narrative of exclusivity and urgency. This means crafting campaigns that not only announce limited availability but also tell a story about why this scarcity exists – perhaps due to high demand, artisanal production methods, or exclusive partnerships.
This is confirmed by a recent study on Indonesian culinary MSMEs (Micro, Small, & Medium-sized Enterprises), which found that FOMO, amplified through social media, drives impulsive buying behavior. Consumers who perceive they might be missing out on trending or limited-time offers are far more likely to make spontaneous purchases. The researchers found that this effect is particularly strong among younger, digitally engaged audiences who regularly interact with social media platforms​.
Social Media as the Catalyst
Social media platforms have become essential channels for amplifying FOMO. These platforms allow brands to create visually appealing campaigns that highlight scarcity through limited-time promotions, influencer endorsements, and user-generated content. For example, Instagram Stories and TikTok countdowns are effective tools that create urgency, encouraging immediate action from viewers.
An example of this catalyst is the Supreme brand, which has built its entire marketing strategy around scarcity and FOMO. Their “drops” (limited product releases) create a frenzy of online activity, leading to products selling out within minutes. This strategy has been widely successful, despite (or because of) the limited availability, resulting in immense consumer loyalty and a strong desire to be part of the brand’s exclusive community.
Replicating this model could mean hosting flash sales, offering exclusive menu items for a limited time, or promoting seasonal specials only available in select quantities. When consumers see others purchasing these items or engaging with the brand, it enhances the effect of social proof, which further drives FOMO.
The Role of Social Influence
Another key psychological principle at play is social influence, where consumers are heavily influenced by the collective behavior of their peers. This phenomena is rooted in evolutionary psychology, where being left out of the group 100,000 years ago meant extreme danger and probable death. Even though life is radically different today, the psychology remains the same. When individuals see their social network engaging with a new product or brand, they cannot help feeling the FOMO, which ultimately leads to increased purchase intentions.
A cultural example of this is Chipotle’s annual “Boorito“ Halloween promotion, which encourages consumers to show off their Halloween costumes to receive a discount on menu items. By showcasing their customers’ costumes on social media and stressing the limited nature of the promotion, Chipotle creates a strong sense of urgency while also leveraging the power of community-driven content to further enhance participation.
Crafting the FOMO Experience
The most effective method is to use social media to promote limited-time offers or exclusive menu items. Visual countdowns, influencer partnerships, and customer testimonials can also create a buzz that fuels FOMO. At the end of the day, FOMO isn’t just about sales; it’s about creating novel experiences that consumers fear missing out on. In a fast-paced, digitally connected world, FOMO has become a key driver of consumer behavior, especially for brands looking to capture the attention of younger audiences. By leveraging scarcity, social influence, and social media marketing, brands can create campaigns that not only drive sales but also build a loyal, engaged customer base. Remember, in the art of FOMO, perception is reality, and exclusivity is the currency of desire.
