Why Scarcity is so POWERFUL for Board Game Crowdfunding…
images is not property of Riley James Copy
In the previous blog post, I talked about why people are drawn to exclusivity…
Specifically, how board game crowdfunding campaigns (on platforms like Kickstarter and Backerkit) take every opportunity to offer exclusives so backers feel exclusive and back/pledge more.
You can read more about it here.
But simply put, I mentioned that people want something exclusive because it makes them feel special. At the end of the day, that’s just how our human brains work.
But I also mentioned that exclusivity is a form of scarcity.
And while exclusivity can lead to increased sales depending on the industry…
Scarcity ALMOST ALWAYS leads to sales regardless of the industry.
My claim… and the purpose of this blog post… is to argue that scarcity is the true “secret sauce” behind crowdfunding campaigns.
In fact, I would argue it is why crowdfunding exists; the campaigns are an excuse to infuse your marketing with scarcity.
Now you might throw up your hands, and object with something like:
“What are you talking about? People just want to bring projects they love to life! If anything, its about abundance, not scarcity!”
And yes, there is a kernel of truth to that objection. Crowdfunding campaigns allow what was not in existence to exist. What was not a possibility is now a reality. And in that sense, it is the opposite of scarcity.
But I counter your objection with this question:
If crowdfunding is not about scarcity, then why is there a deadline?
Why are there unique pledge level rewards?
Why is there an early backer bonus?
Why are there Kickstarter-exclusive bonuses?
And that is just the tip of the iceberg… because it begs the question: "Why have a Kickstarter at all?”
You know you can have a normal e-commerce website that accepts funding from interested parties, right?
Instead of the hassle of single, all-or-nothing crowdfunding campaign, you could make a promotional push whenever you have an update or release. That way you could slowly raise funds in perpetuity!
After all, while Kickstarter is a great marketing tool… it is not necessary for marketing. In fact, it’s only near the end of the funnel and customer journey that it really does anything at all. So why bother?
But here is why many games do not benefit from that approach:
Humans procrastinate. We like to put sh*t off.
We will stall and stall and stall…
And delay and delay and delay…
And wait and wait and wait…
Until the VERY LAST SECOND when the situation is DIRE!!!!
And then, finally, even though we could have purchased and made our lives easier months ago, we give in and get the thing we needed and wanted.
(remind anyone of holiday shopping?!?)
So yeah, you COULD just have an e-commerce website that takes donations and, when you have enough funding that you can create the game, you announce to your backers and everyone rejoices.
Buuuuut… we all know that probably won’t work.
And yet, we know that crowdfunding tabletop games DOES work when you do the same thing on Gamefound or Indiegogo.
Why?
I believe the answer lies in the marketing principles surrounding “scarcity”.
But to understand why, we need to understand why people buy in the first place.
Image is not property of Riley James Copy
How Scarcity Impacts Sales in 6 Lessons
First things first, what you are selling is not the product or service itself, but the value that the customer assigns to that product or service.If the customer does not find it valuable, then they will not be convinced that the offering is worth the price they will need to pay. This is marketing and copywriting 101.
For example, I would never pay $5 for a bottle of water… unless I was standing for 3 hours in a roller coaster line on a hot summer day. In THAT situation, that bottle of water is much more valuable to me, and so I am willing to pay more for it.
Value comes in many shapes and sizes. Something can be valuable because it performs better than competitors. Other things are valuable because they are beautiful. And ALL things are valuable because of how they make us feel (selling is the transference of emotion!).
Lesson 1: Selling = Offering Value
Well, one way something is valuable is if that thing is RARE. Think of rare family photo albums. Some of those photos can never be replaced. They are borderline worthless to everyone else on earth, but to YOUR family, they are nearly priceless. If they were destroyed in a fire, and some wizard said they had a device that could reconstitute them, the family would pay a small fortune to reverse fate.
The rarer something is, the more valuable it is to the customer. This is one reason good real estate or fine art is so expensive; there are extremely few of them available
Lesson 2: Rarity = Valuable
But very few things in life are as uniquely rare as a family photo album. Most things are produced in large quantities or can be easily repaired or replaced. But even then, these things can become rare in different ways:
Some things take time to make or replace, and thus remain rare due to the way they are manufactured (ex: bespoke suits).
Sometimes the supply chain is disrupted, so no one knows when that thing will be replaced (ex: toilet paper at the beginning of the Covid Pandemic)
Some things are attached to a specific time and can never be replicated (ex: authentic newspaper after your team wins the World Series)
When something that can be in abundance is suddenly rare, then the term “scarcity” is appropriate. And as demonstrated in the examples above, all the things that became more scarce also became more valuable.
Lesson 3: Something Made Scarce = Rare = Valuable
But in all those instances, either the product/service was A) already useful/valuable and the scarcity made it more valuable or B) was only valuable because it was both needed and scarce. How does that help something like a Kickstarter board game campaign?
Because humans perceive anything scarce to be valuable.
Yes, you read that right. Even worthless things, if they are scarce, are perceived as having more value. Have you ever stepped into an antique shop? Most of those things are objectively worthless. But even people who don’t care about preserving the past through old stuff know that everything in there is more valuable simply because it is rare.
Lesson 4: ANYTHING Scarce Suddenly Has More Value
But so far, all of these things are inherently scarce. They are unique and therefore are rare. But here’s the kicker: scarcity is NOT reserved for the truly rare things or things that become rare. Scarcity can be artificially manufactured. Luxury brands famously manufacture scarcity as their primary sales tactic. They do this with three different tactics:
Product: limited production and release (rarity!)
Positioning: convincing people they are elite compared to competitors (exclusivity!)
Access: you can only purchase at certain locations and in limited ways (scarcity!)
Diamonds do the same thing; they exist in abundance in nature, yet their value is artificially inflated.
Lesson 5: You Can Manufacture Scarcity
Put it all together:
Selling is about helping the customer see the value in your product and service
Rare things are viewed as more valuable
Some industries manufacture scarcity in order to increase value.
However, so far all I have explained is that, when something is scarce, it raises it’s value in the eyes of the customer. This implies they might be willing to pay more for the product/service.
BUT THIS IS ONLY 50% OF SALES.
Selling is A) showing people the value, B) so they buy, C) RIGHT NOW.
Which means, instead of putting off hte purchase…
the “Fear of Missing Out” (FOMO) kicks in…
And they fear that, if they don’t but the thing now…
They might NEVER get the chance later on…
The emotional benefits and value the thing promises might forever be unavailable…
Unless they act RIGHT NOW!!!
Lesson 6: Scarcity Compels People to Purchase NOW
THIS, MY FRIENDS, IS THE INCREDIBLE POWER OF SCARCITY!!!
Rather than reinvent the wheel, I’m just going to quote a section from Cashvertising:
“By suggesting there’s no need to act now, you give your prospects no incentive to buy now. We’re talking about human intertia. Simply put, inertia is an objects resistance to change its current state of motion…. As advertisers, we need to motivate people to take action right now… its about getting the prospect to take action when the offer is presented to them” (source).
To conclude, let’s explore how scarcity works to sell tabletop games on Kickstarter.:
The Unfortunate Reality is This:
No One Will Back Your Crowdfunding Campaign
Unless You Have an Effective Strategy
To Acquire, Convert, and Retain Customers
Image is not property of Riley James Copy
How Scarcity UNIQUELY Helps Crowdfunding Sales…
If you remember the introduction, I mentioned that so many tabletop games and tabletop games accessories COULD go the normal e-commerce route and receive donations over time.
But, assuming you have a great game, even though many would eventually purchase, you can’t wait 2-3 years to get enough money! You need the funding in 2-3 weeks to know it is worth your investment.
In other words…
You need people to buy/back/pledge now, not later.
Enter our helpful friend scarcity…
Crowdfunding does a few things well. It also does a lot of things poorly (even things people assume it does well). But one thing it does GREAT is manufacture a sense of scarcity.
And, at the risk of repeating myself, this allows Kickstarter to:
A) increase the VALUE of your game in the eyes of potential backers
and B) compel them to back right away.
It does this in several ways:
Early Backer Bonuses: Reaching your goal in the first 24 hours is considered essential for crowdfunding success. It helps the campaign gain the momentum it needs to “snowball” and bring in more backers. To compel your followers, subscribers, and target audience to back within the first few hours, you offer exclusive bonuses that no one who backs later on will get to enjoy.
Campaign Exclusives: You don’t want people to wait until AFTER the Kickstarter has succeeded to back the game. You want their support now so you can plan for the future with confidence. So you advertise exclusive benefits offered only to Kickstarter backers. If they wait until after the campaign, they will never get the opportunity to enjoy these benefits.
Deadline: The most important part. It communicates: “Unless you back this campaign, and unless we reach our goal/stretch goals, then this will NEVER see the light of day”. This is the rawest, purest, ultimate form of scarcity and FOMO. It puts a ticking clock on their human inertia… their propensity to procrastinate… and forces them to make their choice ASAP.
Finally, I want to close with a final thought on what makes this type of scarcity so effective:
Crowdfunding scarcity is HONEST.
Most board game creators WANT to create their game. But they have finite funds, time, and energy to make it happen. They have real limitations.
So they approach the community with a do-or-die ultimatum: “Show me your support and I’ll do it. Don’t and I’ll let it go, no hard feelings”.
You aren’t manipulating the supply like diamond mines or luxury handbags. And yet you get the same result for your marketing strategy.
It’s perfect.
And its the real value of Kickstarter, Gamefound, Indiegogo, and Backerkit.
