Using FOMO to Market to Millennials & Gen Z
Understanding the psychology behind consumer behavior is essential for marketing. There is one psychological trigger to be aware of when marketing to Millennials and Gen Z - the fear of missing out, also known as FOMO. This has become a driving force in shaping the younger generations preferences, decisions, and marketing strategies. Marketers can leverage FOMO to create urgency and increase engagement among younger consumers.
What is FOMO?
FOMO is a common social anxiety that stems from the belief that others are experiencing events and that one is missing out on it. For Millennials and Gen Z, who are deeply connected to social media and technology, FOMO can be a powerful motivator to influence their choices.
FOMO and Technology
Today, every event, product launch, or trend is shared instantly on social platforms, which has created the grounds for FOMO. Millennials and Gen Z are constantly shown glimpses into the lives of friends, influencers, and celebrities. This intensifies the fear that they might miss out on some of the latest and greatest experiences.
A newer social media app targeted to the younger generations, BeReal, is a photo sharing app that allows users to post a photo per day at a random time to show friends what they are doing right at that moment. Although this is meant to promote authenticity, it can also do the opposite at times if everyone else around you is doing fun things.
FOMO in Marketing
Marketers can recognize the potential of using FOMO as a psychological tool. By creating a sense of urgency and exclusivity, brands are tapping into this fear to drive engagement. Here’s a few ways they have begun to do so:
Flash Sales: Implementing limited-time offers and flash sales triggers FOMO by implying there are shortages. Millennials and Gen Z are more likely to make a quick purchase when they believe they might miss out on either a great deal or an experience. Many airline companies will write “1 seat left” on their website when booking tickets to create fear that their consumer will miss out on that flight if not booked right away.
Exclusive Previews: Offering exclusive access or previews to a select group of consumers creates the feeling of exclusivity. These generations have the desire to be part of an exclusive club, increasing engagement and loyalty. An example of this is when booking concert tickets, there are normally pre-sales for the artist’s fan club. If you join the club ahead of time, you receive presale codes, along with other email marketing, that incentivizes you to purchase tickets, and possibly other items.
3. User-Generated Content: Encouraging user-generated content on social media creates a sense of community of the shared experiences. When consumers see their friends and family enjoying a product, service, or event, FOMO kicks in, causing them to participate. An example of a successful UGC campaign was Apple’s #ShotOniPhone where across all social media platforms, people shared photos that were taken on their phones, showing off the great quality of the phone.
Event Marketing: Event marketing is a promotional strategy involving face-to-face contact between a brand and their consumer at events like conferences or seminars. This will make your brand appear as an active participant in the consumer's life. The fear of missing out on a unique experience can increase attendance and engagement.
Importance of Authenticity
While leveraging FOMO can be an effective marketing strategy, it's crucial to keep it authentic. The younger generations are great at detecting misleading or manipulative tactics that will ultimately damage your brand trust. Authenticity is key - make sure the exclusivity aligns with the actual value offered by the product or experience.
Understanding the psychology of FOMO is an important tool for marketers targeting Millennials and Gen Z. By tapping into the fear of missing out, brands can create a sense of urgency, boost engagement, and create lasting connections with their younger audience. Attention spans are no longer what they used to be, so mastering FOMO marketing can be key for staying relevant and impactful.
