The Psychology of Referral:

Why it matters to your marketing strategy

Our Psychology of Referral series covers:

• What really motivates customers to refer-a-friend?

• The 6 Weapons of Influence key to every successful referral campaign

• How to “nudge” your way to referral success

PART 1: What motivates customers to refer?

We were born to be social

“More than features & benefits, we are driven to become a member in good standing of the tribe. We want to be

respected by those we aspire to connect with, we want to know what we ought to do to be part of that circle.”

- SETH GODIN

Factors impacting likelihood to refer

We were born to be socialReferrer incentive: Do I really want this?

In order to act as an incentive, a reward has to hit the customer’s sweet spot

Effort required:How easy will it be to attain the reward?

How many steps, or pieces of data are you asking from your customer in order to sign up?

Social capital: Will this make me look good?

My friends will love this product/service

Social risk: How concerned am I that this will be received negatively?

My friends will see this as self-serving - I don’t want to be seen as profiting from them

Part 1 - Summary

Social capital and social risk play a huge part in likelihood to refer

Read more about how to play on social capital and mitigate social risk

PART 2: Cialdini’s 6 Weapons of Influence

Weapon of influence #1: Reciprocation

“We are obligated to give back to others, the form of behavior that they have first given to us. Essentially thou shall not take without giving in return” - Cialdini

Weapon of influence #2:Commitment and Consistency

When a customer commits to referring your brand, the rule of consistency and commitment suggests that they are more likely to refer again

Weapon of influence #3: Social Proof

Weapon of influence #3: Social Proof

Use quotes or display the number of other happy customers who’ve taken up your offer so far.

Weapon of influence #4: Liking

Ensure the referring friend’s name is prominently featured. This will instantly associate their potential purchase with positive feelings toward that person.

Weapon of influence #5: Authority

An authoritative identity is built by demonstrating professional credentials and expertise.

Weapon of influence #6: Scarcity

Perceived scarcity can drive action - from restricting how long a new customer has to use an offer to limiting how long a referrer can share that offer

Part 2: Summary

Cialdini’s 6 Weapons of Influence provide an excellent blueprint for referral campaign conversion optimization

Read more about Cialdini’s Weapons of Influence

For testing ideas to steal: download our guide to AB testing

PART 3: Nudging Your Wayto Referral Success

There are many ways of framing an offer; each variation can nudge a prospective customer in a different direction. 20 % off might not be as powerful as £20 off when you spend £100

FRAMINGThe contextualising of a concept or issue can dramatically influence decision-making

Never underestimate the power of letting people know how many others shared an offer. This reduces feelings of social risk and sets the expectation that signing up is expected

HERD BEHAVIOUR We are easily influenced by what others say and do

For even more useful insights and tips on how

to make your referral campaigns a success,

check out our complete guide to referral

marketing on our website.