The Role of FOMO in SaaS Growth

FOMO, or the Fear of Missing Out, leverages worry that others are doing something important without us. 
With SaaS, it's used in strategies such as limited trials, special beta invites, or announcing user milestones to drive action now.
Why does FOMO work for digital products? Digital products, inherently, can be duplicated an infinite number of times. 
And yet, by establishing perceived value of the product in terms of scarcity or exclusivity, SaaS companies compel users to take action rapidly.
In this blog post, we shall cover 7 FOMO strategies SaaS businesses use, their psychological trigger factors, approaches to implement FOMO, navigate FOMO ethically and align FOMO with brand values.

The 7 Different Types of FOMO Strategies

Here are 7 different types of FOMO strategies that SaaS brands use to drive demand and conversions.

Offer an exclusive deal. 

Exclusive deals make customers feel special as they are getting offers no one else is, such as special pricing, features or early access to a select group. SaaS brands use this tactic to target their customers to buy their product, download exclusive content and even subscribe to their newsletter. 

Example of a real SaaS brand using this strategy: 

Storeez.app is a simple tool to embed familiar communication channels like stories in your mobile app or website. They have included an exclusive discount of 60% for users from Product Hunt which although is valid until June 30, it works forever. This lifetime deal offer creates a FOMO effect for users to use the product. 

Bullet.so and Quickads are other SaaS industry brands that also used this FOMO strategy.

Quickads, an AI powered ad creation platform used exclusive lifetime deals on Appsumo to get early users, test the product and shape their roadmap. 

The feedback they received are:

1. 50% of features and updates for the next 6 months came in from the Appsumo users

2. Some users invested in their company from loving its service

3. Their brand visibility increased through their attention in Appsumo increasing their website traffic

Waived setup or onboarding fees

By reducing financial friction for new users through wavering program setup or onboarding fees, users are converted quickly through this FOMO strategy.

Example of a real SaaS brand using this strategy:

Luna.ai is a free online AI video generator that creates stunning, high-quality videos in minutes with Luma Labs' Dream Machine. They have included a free account sign up feature that reduces financial friction creating a FOMO effect for users to use the product. 

Flowlu and Laxis are two other Saas industry brands who used this FOMO strategy.

Leverage scarcity

This strategy works by creating scarcity of the product’s access through invite-only waitlists or limited spots which increases the perceived value of the product.

Example of a real SaaS brand using this strategy:

BoilerCode by Dome is a SaaS validation template that is designed to streamline your product by providing pre-built essential features and integrated feedback systems. They have used the scarcity FOMO strategy by creating a scarcity of their product through giving a promo for the first 100 users only which increases the perceived value of the product.

Superhuman and Humen are two other Saas industry brands who used this FOMO strategy.

Superhuman, the premium email client strategically used scarcity marketing through its scarce invite-only launch model and selectively onboarding influential individuals within the tech and startup communities.

The feedback they received are:

1. Direct responses from 700+ prospective users in the first year.

2. Virality through email signature of over 2 billion emails contributed to more than 50-60% of their web traffic

3. By 2023, Superhuman reached $100M+ ARR with the highest SaaS retention rate.

Use urgency

This is a time-constrained strategy that drives actions by deadlines which reduces procrastination and compels immediate decision making.

Example of a real SaaS brand using this strategy:

Storydoc is a SaaS tool that helps businesses create presentations with dynamic elements that are effective for sales and marketing. They use this time-constrained FOMO strategy to drive urgency for users to make decisions through their buy one get one offer. 

Scalenut and VideoBolt are two other Saas industry brands who used this FOMO strategy.

Lean on social proof

The number of users, case studies and testimonials are highlighted to gain users’ trust. This strategy makes users feel confident to join a platform that is already validated by others.

Example of a real SaaS brand using this strategy:

Writesonic is an AI content generation tool that generates content for you based on the specific requirements you input like specific style or detail and content is generated within the required format. They highlight their product being trusted by 30,000+ teams and 10 million marketers in order to gain users’ trust to join the platform that is already validated by others.

Pictory and Shapo are two other Saas industry brands who used this FOMO strategy.

Influencer or authority quote

Users trust industry experts and are influenced by what they recommend, so this FOMO strategy leverages endorsements from experts or well-known users.

Example of a real SaaS brand using this strategy:

Webflow is used to build and design host responsive websites with powerful features from customization and branding to user experience for SaaS company websites. By using an expert endorsed quote strategy like the founder of Design System University giving a tip about AI is what was missing when it comes to design systems, users are more likely to be influenced by what they recommend. 

Jasper and Flowjin are two other Saas industry brands who used this FOMO strategy.

Free gift for first purchasers

This strategy offers bonuses like gift cards, credits, templates or premium features to new users that tips hesitant users over the edge. 

Example of a real SaaS brand using this strategy:

FareUpThere is a platform used by airlines to enhance customer experience by identifying their journey’s pain points through short surveys via push notifications and location tracking. This SaaS brand offers 100+ gift cards for every review a customer gives inviting them to join the platform.

Humva and EraseID are two other Saas industry brands who used this FOMO strategy.

The Psychological Trigger Factors from these 7 FOMO strategies:

Below is a table demonstrating the psychological trigger factors these 7 FOMO strategies bring towards its users:

The Anatomy of a SaaS FOMO Loop

The SaaS FOMO loop is an effective growth engine that converts limited time and exclusive offers into a self-propelling user demand and virality loop.

While it shares similarities with a Viral Loop which is where users organically share a product to grow its user base, the FOMO loop uniquely thrives on urgency, scarcity, and emotional triggers.

It does this through phrasing such as "limited spots", "early bird pricing" or "VIP access" that refers to a "now or never" current event that quickly sparks curiosity towards prospective users. 

Users have a sense of urgency towards the opportunity that makes them take action by responding or enrolling just to not miss out. 

Once in the funnel, users receive social validation like a count down of how many are on the waitlist or testimonials that reinforce the opportunity's value. 

The next move is to have users share it to skip the line or earn rewards, thereby converting users to promoters. 

This visibility is another entry point into the loop that brings more curious users, who also don't want to miss out and you are back in the same loop again. 

It’s an urgency-validated-growth flywheel that is a perfect fit for SaaS.

How to Create FOMO in Your SaaS Product 

FOMO is not just a good reason to adopt in SaaS, it is a verified growth lever. 

Used correctly, it creates curiosity, urgency, and action throughout your funnel.

Below I've outlined five most powerful FOMO tactics and how to make them real for your brand.

1. Launch as Invite Only to Increase Curiosity 

Why this works: An invite-only beta will portray that your product is exclusive and in high-demand, even before it goes on the market.

Actionable Tips:

• Create early access signups and a visible waitlist for interested users.

• Provide referees (such as "skip the line") to gain referrals.

• Publicly recognize and thank your early adopters to create social proof.

2. Implement Progress Bars, Countdown Timers, or "Only X Available" Notices

Why does this work: Visual indicators of scarcity provide a sense of urgency. 
Countdown clocks, or tracking a seat count going down will create motivation and fear of missing out to act now.

Actionable Tips: 

• Include real-time progress bars in your onboarding or sign-up process.

• Use countdown timers wherever appropriate for webinars, promo campaigns, or limited time features.

3. Utilize Social Proof across the Funnel

Why it works: People are drawn to consensus, so when someone sees others using and loving your product, it removes uncertainty and promotes FOMO.

Actionable Tips

• Display testimonial, usage metrics, or logos on the homepage

• Use microcopy like: "Trusted by 10,000 marketers" or "2 people just signed up!"

• Use case studies and customer love in onboarding emails, product tours.

• Include limits on inventory or usage like: "3 spots remaining!"

4. Create Time Sensitive Offers with Deadlines

Why it works: Flash sales, and offers that expire racialize time for decision making, and cause an act of impulse to occur. 
No one likes to not be in the loop.

Actionable ideas: 

• Use limited time pricing for new features, launch, or holidays. 

• Use phrases like, "Offer ends in 24 hours", and "Last chance to save" and always put a countdown widget to your landing pages and email content. 

5. Use leaderboards, public counters, or gamified sharing 

Why it works: Gamification with public progress points increases visibility, competition.
People love keeping tabs on their progress and they dislike being a lower status than others. 

Actionable Ideas:

• Show the leaderboard, rankings for referrals, usage milestones, or community involvement!  

• Public counters like "8,462 users joined this month".

• Reward users for inviting people, complete action, or provide feedback sharing.

Navigating FOMO ethically 

In this section, we will analyze how to ethically navigate through using FOMO:

1. How to avoid manipulation tactics

2. Where to draw the line with transparency vs. urgency

3. What to do when FOMO backfires

As a SaaS founder, you understand how important FOMO is but, using it irresponsibly can be more harmful than beneficial. 
Your customers today can immediately recognize manipulative fake urgency ploys and so the first step is not to manipulate. 
Tricky messages that are not grounded in reality like misleading countdown timers or "only a few spots left" don't just fail, they break trust. 
So, instead focus on building actual value and expressing it clearly. If you are providing exclusivity, then simply tell them why it is exclusive and make its authenticity known.
Second, it's important to draw the line between transparency and urgency of using FOMO. 
Urgency can help users become decisive of the product and it is not inherently bad. 
However, there is a fine line between encouraging someone and pressuring them. 
Nowadays, our audience craves authenticity so base urgency on reality. 
Using real scarcity like a closed beta with limited seats builds far more trust than inflated claims. 
The more honest and human your connection is, the more credible is your brand.
So, what happens when your FOMO campaign goes wrong? 
People will watch, and they will not be forgiving when your campaign oversells, or exaggerates hype that doesn't match the product experience.
So, you will end up with negative reviews, churn and damaged reputation. 
But, this can be rectified and you can start by owning up to your error. 
Let trust be the foundation of your future campaigns and shift your efforts towards consistent value delivery. 
People desire a brand that they can trust, not merely a hook.

How to Align FOMO with Core Brand Values

Here are two ways to implement FOMO strategies to fit different brand identities well:

1. Community-Driven Brands: Create a Sense of Belonging

Only when your FOMO application is exactly a true reflection of your company is it going to be most effective. 
If your SaaS business is about communities, use FOMO to instill a sense of membership like closed-group access, events, or an early-release feature. 
This community-driven tactic appeals to users who want to be part of something meaningful without using pressure tactics. 

2. Data-Driven Brands: Highlight Performance Benchmarks

If your SaaS is data-driven, tie FOMO to performance metrics. 
Employ statistics such as "Top 10% users reach X" to motivate users through aspiration, rather than fear.
It's a brilliant method of engaging competitive customers without diluting your analytical brand. 
Ultimately, don't let your values be led by your FOMO, rather rely on your values for FOMO.

Final Lessons for SaaS Founders

FOMO in a SaaS company is not a marketing tool, but a utility that lets you spark growth, foster user engagement, and create loyalty if deployed accordingly. 
Just like every other utility, how you leverage the tool matters.
The greatest SaaS companies are not simply creating hype, but they are balancing urgency with real value, exclusivity with real community, and scarcity with real purpose. 
Moral FOMO doesn't deceive, it motivates and it satisfies users without any sort of misleading agenda.
So ask yourself: What form of FOMO can you bring ethically into your product today?
Maybe it's a pay-it-forward closed beta, or a referrer program that builds community. 
Whatever you choose to add to your product, make it meaningful to your purpose and significant to your audience.
Because in the long run, FOMO well done is about presence without pressure, and the only thing your audience should be missing is your competition.
Want to know more about SaaS marketing strategies? 
Read the latest blog on “How Viral Loop Helped SaaS Marketing” on Rank Wizards website.