For referral marketing to be successful you need to understand the psychology that must go into it. A lot of time referral marketing fails because people and business owners do not understand these psychological principals at stake.
Rule #1: For your referral marketing to be successful you need to make sure that you understand and invoke the law of reciprocity. What is the law of reciprocity and why is it important in your referral marketing? The law of reciprocity states that people are more likely to do something for you after you have done something for them. This is important in referral marketing because if you try to get referrals from someone and he or she does not feel as if they owe it to you, you will likely fail.
This is similar to making deposits in a bank account. If you try to make a withdrawal without first making a deposit, the check will bounce. This is exactly the same, many times, in referral marketing.
Rule #2: For your referral marketing to be successful you also need to understand top of mind awareness. Most people are constantly bombarded with information and things to do. The average person is exposed to so many messages a day, upwards of 30,000, from friends, family, radio, television, computers, billboards, newspapers, magazines, emails, and more. The brain simply cannot handle all the incoming information. What does this mean for your referral marketing? Simply put. You must absolutely stay in front of people to get referrals. Your referral marketing cannot just simply be one-step. It needs to be marketing for referrals continually.
Rule #3: Your referral marketing must get the attention and stand apart from the crowd. Most people do not differentiate themselves from their competition. If you don’t stand apart you risk being lumped in with everyone else. How do you stand apart? You must continually and constantly be different, and have a different message, a different approach, and a different feeling from your referral marketing.
Rule #4: You must educate people in your referral marketing. What makes you different, why is your business different. How does your referral marketing work differently than other people and other businesses and your competition?
Rule #5: You must understand human nature in your referral marketing. The two most important questions for rule 5 and your referral marketing is this: Who cares? And what’s in it for me? Who cares means that whenever you make a statement if the person says, “Who cares…” in regards or response to it that you probably need to rephrase the statement. The same goes for, “What’s in it for me.” If you make a statement and the person thinks or responds (the person will probably NEVER say this out loud or even to himself or herself) “What’s in it for me?” People are focused on what they need, and on what they want. If you don’t clearly explain what is in it for them, and show them, your referral marketing will most likely fail.
If you understand these four referral marketing rules and psychological principals your referral marketing will work much better! Implement a referral marketing system today!