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Inspire referrals with the rule of the few

Carl Maerz is a co-founder of Rocket Referrals, a startup company focused on helping businesses gain referrals from customers.

Extensive investigation into human psychology continues to shape the marketing strategies that we are faced with daily. Sure, technology and changing trends in social relationships change the ways in which the messages are spread - yet the same underlying elements in psychology have been used for decades. First published in 1984, Robert Cialdini outlined in his book Influence: The Psychology of Persuasion six principles of influence that are just as effective today. They have, however, been primarily used in traditional marketing tactics that have gradually lost their potency over time. Therefore, I continually think of ways Dr. Cialdini’s principles of influence could be incorporated into referral marketing - in attempt to spice things up a little bit. After all, recent studies show that today people trust recommendations from friends and family seven times more than traditional advertising.

GoldenticketScarcity

Today I am going to expand on Dr. Cialdini’s sixth principle of influence: scarcity. The idea behind this is that something is deemed more attractive when its availability is limited or when we stand to lose the opportunity to acquire it on favorable terms. In traditional marketing we see it daily with items offered in limited quantities or special offers that soon expire. Let’s not kid ourselves, it works. Not all the time, but the thought of losing an exclusive offer leads us to pull the emotional trigger more than you may realize.

As a business you can incorporate “the rule of the few” into your referral strategy with the help of your best clients. It starts by providing a unique offer that your current clients can give away to their friends and family. But here is the trick: it has to have exclusive value, and it must be for a limited time.

Exclusive value and limited time

For the offer to have value for your client to give away it must be exclusive to only one of their friends or family members. You want your client to feel like they are giving something special away - offering it out to all their buddies will belittle their social contribution. The offer must also have some actual value - such as a discount or extended service that they will not find elsewhere. If they can find the same coupon on your website it is not exclusive. Also, an offer for a free quote for a friend or family member is NOT a special offer. If you’re too frugal with the offer it will not be given away, let alone be redeemed by the referred individual. Finally, in honor of the principle of scarcity, the offer should have an expiration date. This will encourage the referred individual to take action.

 

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