In the early 20th century, New Orleans was gripped by fear. A mysterious figure, known as the Axeman, sent a chilling letter to local newspapers. He promised to spare homes where jazz was being played as he “passed through” the city. That night, jazz bands were sold out, and homes blasted music into the streets. Fear, coupled with urgency, mobilized an entire community.

The Axeman’s story is terrifying, but it reveals an important psychological principle that businesses often leverage: urgency motivates action. Done ethically, this strategy can transform how SaaS companies and businesses engage customers and drive growth.

The Psychology of Urgency

Humans are hardwired to act when the stakes feel high. Behavioral psychologists refer to this as loss aversion—the tendency to prioritize avoiding loss over gaining equivalent benefits. The Axeman’s letter is a dark example of this principle, but businesses tap into the same psychological levers to drive decisions:

1. Scarcity: Limited stock or exclusive offers encourage people to act quickly.

2. Deadline Pressure: Short timeframes heighten urgency.

3. Fear of Missing Out (FOMO): Social proof and exclusivity create the perception that inaction equals loss.

From Jazz to SaaS: Using Urgency the Right Way

Urgency can be a powerful tool, but businesses need to deploy it ethically to avoid eroding trust. Below are actionable insights drawn from real-world examples and studies.

1. Create Urgency Without Manipulation

Lesson from the Axeman: The fear he created was artificial but effective—it forced immediate action. In SaaS, urgency should highlight genuine benefits or risks, not fabricate them.

Actionable Example:

• Expiring Deals: HubSpot offers time-limited discounts for annual subscriptions but clearly communicates the value of acting early (e.g., saving on long-term costs).

• Free Trial Deadlines: Dropbox uses trial expiration reminders to encourage conversion but balances them with offers to extend the trial, maintaining trust.

Avoid: Deceptive countdown timers that reset each time the page is refreshed. Studies show these tactics erode long-term customer trust.

2. Use Social Proof to Amplify Urgency

Lesson from the Axeman: His letter led to packed jazz clubs because people feared isolation—if everyone else was playing jazz, you didn’t want to be the one left out.

Actionable Example:

• Customer Counts: Booking.com displays “Only 2 rooms left!” messages combined with “10 people viewing this property right now.” This creates urgency through social proof.

• Live Activity Feeds: SaaS platforms like Intercom show “Recently purchased by [customer]” notifications, driving FOMO without manipulation.

Study Reference: A 2015 study in Journal of Marketing Research found that perceived scarcity combined with peer activity significantly increases purchase likelihood.

3. Turn Fear into Opportunity

Lesson from the Axeman: His love for jazz made the night more than just survival—it became an event. Businesses can similarly turn fear or challenges into opportunities for engagement.

Actionable Example:

• Cybersecurity SaaS: Instead of fear-mongering about breaches, companies like CrowdStrike emphasize the opportunity to “proactively secure your future.”

• Financial Software: Mint highlights how failing to budget can lead to financial loss but frames its tools as empowering solutions, not scare tactics.

Key Insight: The focus should shift from fear alone to the solution and its value.

4. Leverage Urgency During Major Events

Lesson from the Axeman: Timing is everything. He didn’t just announce his love for jazz randomly; he tied it to a specific night, creating urgency with a deadline.

Actionable Example:

• Black Friday Campaigns: Shopify merchants often use countdowns leading to Black Friday, pairing urgency with high-value deals.

• Product Launch Events: Apple’s pre-orders sell out because they set a clear launch time and pair it with limited stock announcements.

When Urgency Backfires

Unethical urgency damages brand reputation and customer loyalty. For example:

• The Volkswagen Scandal: Manipulating emissions tests created urgency for their “eco-friendly” cars but resulted in a $30B loss after the truth surfaced.

• Early SaaS Free Trials: Companies that used hard-to-cancel trials saw high churn rates when customers felt tricked into subscribing.

Urgency works when it’s real, ethical, and customer-centric. Fake scarcity or exaggerated risks may boost short-term metrics but erode long-term trust.

Final Thought: Build Trust, Not Fear

The Axeman turned fear into a marketing strategy for jazz, but at what cost? While urgency can drive user behavior, businesses must prioritize trust. The most successful SaaS companies don’t just push users to act—they create meaningful, win-win experiences that keep customers coming back.

Leverage urgency thoughtfully, and your product won’t just survive the night—it’ll thrive for the long haul.