Friend-get-friend promotions are extremely common, but persuading individuals to sell to their friends can be problematic. Individuals frequently feel embarrassed to complete this, and some research conducted in the 1950s by two American academics (Leon Festinger and James M. Carlsmith) brought out an interesting phenomenon: people who're offered a large reward for persuading a friend to complete something are less likely to succeed at it than are people who're offered a small reward.
This is simply because individuals offered a small reward will persuade because they are themselves persuaded - individuals offered a large reward do so because of the reward.
In numerous cases, offering a reward to someone for recommending a product makes them really feel as if they're betraying a friendship - not the result the business would like, and yet many bring-a-friend schemes do precisely that, offering ever-larger rewards as a way of persuading individuals to pass on a friend's name.
Laphroaig is a Scottish single-malt whisky distilled on the island of Islay. It is the strongest-flavored whisky available, so for some people it's too powerful, for others it is a rare treat. Obviously the quality comes at a price - but for its devotees the price is well worth paying.
The distillery has a "Friends of Laphroaig" organization that devotees can join. Periodically, the distillery asks "Friends" for the names of three or four friends, to whom the distillery will send a little bottle of the whisky as a gift. There's nothing in this for the "Friend" - the other individual gets the whisky.
What it does do is allow the distillery to expand the quantity of people who know the product, with the added advantage that the "Friends" are likely to choose individuals who they think will enjoy the product. Obviously there might be some abuse of the system - choosing 3 teetotaller friends in order to obtain 3 totally free miniatures of the whisky is one obvious possibility - but in common people are very fair about it, because it's following all a extremely generous offer.
The idea could be extended in other methods - banks may provide £25 to be deposited in the friend's account, a gym may have a "bring-afriend" day having a totally free gift or discount towards the buddy if he or she joins the gym, a hotel may offer a free room to a friend.
The offer needs to be something that the friend will appreciate and benefit from. The reward to the recommender will be the thanks of a friend - there is usually no need to provide anything towards the recommender. The reward needs to connect straight to the product - a sample or perhaps a trial period, for instance. If you do give a reward to the recommender, try to make it something they can share using the buddy.
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Note: This article was sent to us by: Craig Morris at 01202011
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