Latest / Earn Your Leisure / Study Hall: Scarcity Marketing: Lessons from Nintendo and Elmo

Transcript

Study Hall: Scarcity Marketing: Lessons from Nintendo and Elmo · Earn Your Leisure

• 0:01
  Speaker 1: Earners. What's up.
• 0:02
  Speaker 2: You ever walk into a small business and everything just
• 0:04
  Speaker 2: works like The checkout is fast, the receipts are digital,
• 0:08
  Speaker 2: tipping is a breeze, and you're out the door before
• 0:11
  Speaker 2: the line even builds. Odds are they're using Square. We
• 0:15
  Speaker 2: love supporting businesses that run on Square because it just
• 0:18
  Speaker 2: feels seamless. Whether it's a local coffee shop, a vendor
• 0:21
  Speaker 2: at a pop up market, or even one of our
• 0:23
  Speaker 2: merch partners, Square makes it easy for them to take payments,
• 0:27
  Speaker 2: manage inventory, and run their business with confidence, all from
• 0:31
  Speaker 2: one simple system. If you're a business owner or even
• 0:35
  Speaker 2: just thinking about launching something soon, Square is hands down
• 0:38
  Speaker 2: one of the best tools out there to help you start, run,
• 0:41
  Speaker 2: and grow. It's not just about payments, it's about giving
• 0:45
  Speaker 2: you time back so you can focus on what matters
• 0:47
  Speaker 2: most Ready. To see how Square can transform your business,
• 0:51
  Speaker 2: visit Square dot com backslash go backslash eyl to learn
• 0:56
  Speaker 2: more that Square dot com backslash, go backslash eyl. Don't wait,
• 1:01
  Speaker 2: don't hesitate. Let's Square handle the back end so you
• 1:04
  Speaker 2: can keep pushing your vision forward. This episode is brought
• 1:10
  Speaker 2: to you by P and C Bank, a lot of
• 1:12
  Speaker 2: people think podcasts about work are boring, and sure they
• 1:16
  Speaker 2: definitely can be, but understanding of professionals routine shows us
• 1:20
  Speaker 2: how they achieve their success little by little, day after day.
• 1:24
  Speaker 2: It's like banking with P and C Bank. It might
• 1:27
  Speaker 2: seem boring to save, plan and make calculated decisions with
• 1:30
  Speaker 2: your bank, but keeping your money boring is what helps
• 1:33
  Speaker 2: you live or more happily fulfilled life. P and C
• 1:36
  Speaker 2: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
• 1:41
  Speaker 2: eighteen sixty five is a service mark of the PNC
• 1:44
  Speaker 2: Financial Service Group, Inc. P and C Bank National Association
• 1:48
  Speaker 2: Member FDIC.
• 1:51
  Speaker 3: I have a two part question. But the first part
• 1:53
  Speaker 3: is can you really describe that? Because everybody knows the
• 1:57
  Speaker 3: scarcy model. You just you put less product out right,
• 2:00
  Speaker 3: drive up to demand. But I think there's some more,
• 2:02
  Speaker 3: there's other elements that actually make that. It's not like
• 2:05
  Speaker 3: you can just make ten water bottles and say I
• 2:07
  Speaker 3: only have ten water bottle, I'm a charge one hundred
• 2:09
  Speaker 3: dollars for them, right, Like, from your understanding and working
• 2:12
  Speaker 3: inside of it, what made the scarcity model work when
• 2:15
  Speaker 3: you guys were doing.
• 2:16
  Speaker 4: It, Yeah, it was specifically when Nintendo, or just in general.
• 2:20
  Speaker 3: Just in general, but Inintendo, let's talk about that since
• 2:22
  Speaker 3: you were in it.
• 2:23
  Speaker 4: Yeah, so we were in experiential marketing. We travel from
• 2:26
  Speaker 4: city to city putting up like these literally bringing the
• 2:29
  Speaker 4: video game to life, like that was my job, right,
• 2:32
  Speaker 4: and we were doing that, but the supply in the store,
• 2:35
  Speaker 4: the product wasn't available. So like the hype gets built
• 2:38
  Speaker 4: up of like where can I find this thing? The
• 2:41
  Speaker 4: value gets built up of, like where I will pay
• 2:44
  Speaker 4: above what it's asking for to get this thing because
• 2:47
  Speaker 4: I've experienced it.
• 2:48
  Speaker 1: And so so you.
• 2:49
  Speaker 3: Were promoting a product with no product available. Correct, The
• 2:53
  Speaker 3: promotion was done with no even release date.
• 2:58
  Speaker 4: No, the product was out, you just couldn't find it.
• 3:01
  Speaker 4: But we like our teams, and this was one of
• 3:04
  Speaker 4: many teams all across the United States. We were out
• 3:07
  Speaker 4: every single day literally creating the portions of the video
• 3:10
  Speaker 4: game that you could walk into. That is very commonly
• 3:13
  Speaker 4: known now, ten fifteen years ago, it was unheard of.
• 3:16
  Speaker 4: This is also like social media was just becoming like
• 3:19
  Speaker 4: a business utility, but it was like, how do I
• 3:21
  Speaker 4: create my product and turn it into an experience? If
• 3:24
  Speaker 4: people have an immersive experience as opposed to just being
• 3:27
  Speaker 4: in the isle of best buy and trying the product.
• 3:30
  Speaker 4: It's a completely different compelling moment that also makes you
• 3:33
  Speaker 4: have a buying decision more expensive than you would usually have.
• 3:37
  Speaker 4: Right games were like maybe forty to fifty dollars. At
• 3:40
  Speaker 4: the time that we fit board, I believe it was
• 3:41
  Speaker 4: about three hundred dollars, So it was a different gap
• 3:44
  Speaker 4: in the buying decision. What I'm telling you now is
• 3:48
  Speaker 4: I didn't realize what was happening until I read the
• 3:50
  Speaker 4: book The Psychology of Influence. And so we were traveling
• 3:55
  Speaker 4: all across the country setting up these activations, and no
• 3:59
  Speaker 4: one could buy it in this door. And so by
• 4:01
  Speaker 4: the time Christmas comes around, it's like, hey, hey, fever, like,
• 4:05
  Speaker 4: everyone's trying to find this product no matter where, they'll
• 4:08
  Speaker 4: find it, and they'll ever they'll pay triple and double
• 4:10
  Speaker 4: for the product. We see the same thing happening in
• 4:12
  Speaker 4: the sneaker industry, right like, people will pay way above
• 4:15
  Speaker 4: the fifty or one hundred dollars because they cannot find
• 4:19
  Speaker 4: it anywhere else. And so what I learned in the
• 4:22
  Speaker 4: Psychology of Influence is the first time that they saw
• 4:24
  Speaker 4: that happen was with the Elmo doll. Elmo took on
• 4:28
  Speaker 4: me Elmo, and they the marketing industry and product industries
• 4:33
  Speaker 4: were kind of conspiring to do this because they realized
• 4:35
  Speaker 4: they could get parents to buy two products as opposed
• 4:38
  Speaker 4: to one. So if I'm a kid and I want
• 4:41
  Speaker 4: this we Fit or I want this Elmo doll the
• 4:43
  Speaker 4: entire year Christmas comes, as a parent, you have promised
• 4:47
  Speaker 4: them that you get to the store, you can't find
• 4:49
  Speaker 4: it anywhere, So you know what, you buy them the
• 4:51
  Speaker 4: next best thing. And then what those companies were doing
• 4:53
  Speaker 4: is is right after Christmas, it's flood. Almos were flooded
• 4:57
  Speaker 4: on the shelf. You can find it any and everywhere,
• 4:59
  Speaker 4: and so as a parent, you also buy them the
• 5:01
  Speaker 4: Elmo doll. And so they literally increase the lifetime value
• 5:04
  Speaker 4: of that customer by not having the product that everybody
• 5:07
  Speaker 4: wanted the most available when they needed.
• 5:09
  Speaker 1: It the most.
• 5:10
  Speaker 4: You're gonna buy something to just wrap and put under
• 5:12
  Speaker 4: the shelves, and you're gonna buy that thing when it
• 5:15
  Speaker 4: becomes available, and you literally doubled the lifetime value of
• 5:18
  Speaker 4: that customer. What I learned when I read that book
• 5:21
  Speaker 4: is that's exactly what was happening with that product. At
• 5:24
  Speaker 4: that time that we were promoting it is parents went
• 5:26
  Speaker 4: and bought anything that they could possibly buy from an
• 5:29
  Speaker 4: electronic standpoint for Christmas. Right after Christmas and right after
• 5:33
  Speaker 4: the holidays, that board was flooded and any and everywhere,
• 5:36
  Speaker 4: And I just didn't realize that. I only understood the
• 5:39
  Speaker 4: experiential component of bringing people in so that they can
• 5:42
  Speaker 4: experience it and so that they would buy the product
• 5:45
  Speaker 4: when it was available. So it was a weird time
• 5:47
  Speaker 4: that we were in that I had that realization once
• 5:50
  Speaker 4: I read that.
• 5:50
  Speaker 3: So the whole idea is like to have it not
• 5:54
  Speaker 3: in demand when you need it the most, and then
• 5:58
  Speaker 3: overflow of demand after peak season is over.
• 6:01
  Speaker 4: Yeah, So to not have it available when you need
• 6:04
  Speaker 4: it the most, when you need it the most, you'll
• 6:05
  Speaker 4: buy something else.
• 6:06
  Speaker 5: I'm going to buy Mario tennis.
• 6:08
  Speaker 1: Yeah.
• 6:08
  Speaker 4: It's like if you you have a significant other and
• 6:11
  Speaker 4: she wants this very specific diamonds, you can't. You've promised
• 6:14
  Speaker 4: the diamonds because you know how important it is. It's
• 6:15
  Speaker 4: the only thing that she's asked for. So you get
• 6:17
  Speaker 4: to the jewelry store. The diamonds are nowhere to be found.
• 6:20
  Speaker 4: You've gone to numerous stores, you cannot find it. You're
• 6:23
  Speaker 4: not going back home without something that's done by design
• 6:27
  Speaker 4: and intention. So you're going to buy that thing. And
• 6:29
  Speaker 4: now when that thing becomes available that she really wanted, well,
• 6:32
  Speaker 4: that want doesn't go away just because you got you
• 6:35
  Speaker 4: buy the thing again.
• 6:36
  Speaker 5: The stinker thing is perfect. It's like every Christmas Join
• 6:39
  Speaker 5: is going to release eleven, right. If the kid doesn't
• 6:42
  Speaker 5: get the eleven, they'll probably buy the kid pair of KDS.
• 6:45
  Speaker 5: Nike sees that, Oh, restock and now everybody gets to
• 6:50
  Speaker 5: have the shoe, and now you have the customer more
• 6:51
  Speaker 5: than more than one purchase.
• 6:53
  Speaker 1: Yeah, it's it.
• 6:54
  Speaker 4: And I think one of the things about reading that
• 6:57
  Speaker 4: book and understanding is that at first it pisses you off, like, man,
• 7:00
  Speaker 4: I felt for all these.
• 7:01
  Speaker 5: Traps as you was saying it, and I'm like, I
• 7:02
  Speaker 5: think I felt it.
• 7:04
  Speaker 4: But then I think as an entrepreneur, you can use
• 7:06
  Speaker 4: that and turn that around, right. And so the difference
• 7:08
  Speaker 4: between the two is, I think on the advertising industry
• 7:11
  Speaker 4: it's there's a little bit of manipulation, and from an
• 7:14
  Speaker 4: entrepreneurship standpoint, you can use that in your favor of
• 7:17
  Speaker 4: thinking like, well, how do I market a product to
• 7:20
  Speaker 4: this person? Where they if I don't have it available,
• 7:23
  Speaker 4: then there's something else that's equally or close to what
• 7:26
  Speaker 4: they want, but they still keep them around long enough
• 7:29
  Speaker 4: that they also buy the thing that they want. There's
• 7:31
  Speaker 4: one way to look at it, right. The other way
• 7:33
  Speaker 4: to look at it is intention. Is your intention to
• 7:35
  Speaker 4: manipulate people into buying two things? Or is your intention
• 7:39
  Speaker 4: to increase the lifetime value of the customer in a
• 7:42
  Speaker 4: meaningful way that increases their affinity to who you are
• 7:46
  Speaker 4: and what you're building.
• 7:47
  Speaker 1: I think there's another way to look at that, right.
• 7:49
  Speaker 4: And then when I think of like black businesses, and
• 7:52
  Speaker 4: I see this happen in the food business more than anything.
• 7:55
  Speaker 4: You'll go to a restaurant they don't have like nine
• 7:59
  Speaker 4: things on the menu.
• 8:00
  Speaker 1: You're like, man, I'm never gonna come to this restaurant again.
• 8:02
  Speaker 4: And then I've seen other other menus and other companies
• 8:05
  Speaker 4: who will say, well, first come first, sir, right like
• 8:09
  Speaker 4: if we run out, we run out, And you start
• 8:11
  Speaker 4: getting to that early because they've set a different kind
• 8:14
  Speaker 4: of expectation around the scarcity and limited availability.
• 8:17
  Speaker 1: It's how you communicate it.
• 8:19
  Speaker 4: In one instance, I see black businesses being demonized for
• 8:21
  Speaker 4: that they never got what they say they gonna have.
• 8:24
  Speaker 4: They never open when they say they're supposed to open,
• 8:26
  Speaker 4: they close in early. And then I've seen it manage
• 8:28
  Speaker 4: the expectation, manage around that. In other south By Southwest,
• 8:32
  Speaker 4: the barbecue place there is a prime example. You know
• 8:34
  Speaker 4: that if you don't get there at six o'clock in
• 8:36
  Speaker 4: the morning, you may not get that barbecue because they
• 8:39
  Speaker 4: once they run out, they run out. You're not saying, like, man,
• 8:42
  Speaker 4: they don't have anything together. You know what, You wake
• 8:45
  Speaker 4: up the next morning at six o'clock because you really
• 8:48
  Speaker 4: want that barbecue. Everyone's spoken so highly about it, and
• 8:51
  Speaker 4: you know that it's now a very kind of sacred
• 8:53
  Speaker 4: experience that you have that you wouldn't have anywhere else
• 8:56
  Speaker 4: because you get to try something that other people may
• 8:59
  Speaker 4: not try because they've a lot. It's about how we
• 9:01
  Speaker 4: manage expectations in business, and then how we communicate the
• 9:04
  Speaker 4: value of what we're doing. In one end, you never
• 9:07
  Speaker 4: going to go back there because they don't never have
• 9:08
  Speaker 4: anything together. Is literally no difference. The supply is gone.
• 9:13
  Speaker 4: You get there first, You get there first, one instances coveted,
• 9:15
  Speaker 4: and then the other instance is demonized. And that's not fair,
• 9:18
  Speaker 4: but it's a business lesson that people have to learn.
• 9:21
  Speaker 6: An illegal alien from Guatemala charged with raping a child
• 9:24
  Speaker 6: in Massachusetts. An MS thirteen gang member from Al Salvador
• 9:28
  Speaker 6: accused of murdering a Texas man of Venezuelan charged with
• 9:32
  Speaker 6: filming and selling child pornography in Michigan. These are just
• 9:36
  Speaker 6: some of the heinous migrant criminals caught because of President
• 9:40
  Speaker 6: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 9:44
  Speaker 6: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 9:49
  Speaker 6: crossings are at the lowest levels ever recorded, and over
• 9:52
  Speaker 6: one hundred thousand illegal aliens have been arrested. If you
• 9:56
  Speaker 6: are here illegally, your next you will be fine nearly
• 10:00
  Speaker 6: one thousand dollars a day, imprisoned and deported, you will
• 10:04
  Speaker 6: never return. But if you register using our CBP home
• 10:07
  Speaker 6: app and leave now, you could be allowed to return legally.
• 10:11
  Speaker 6: Do what's right. Leave now. Under President Trump, America's laws,
• 10:16
  Speaker 6: border and families will be protected.
• 10:18
  Speaker 1: Sponsored by the United States Department of Homeland Security,