Referral Marketing: When Do People Do Word of mouth? [+ Checklist]

Amazon only made its big breakthrough through recommendation mechanisms. Even providers like Facebook, YouTube, Instagram and Pinterest live from the network effect. And everyone benefits from that Psychologythat is behind word of mouth and referrals.

Why recommendations are so important to us

Never stood People in front of so many seemingly insurmountable mountains of goods. And the flood of information has become uncontrollable. The perceived confusion increases. More and more rushes at us - but we have less and less time for everything.

The Anxiety from mistakes is therefore immense. And this above all among the business decision-makers in the carpet floors. But doubts lead to blockages in action, to consumer restraint and to buyers' strikes. The way out of this complexity dilemma?

A “handpicked” Suggestions. The exchange of experiences and the good tips among (business) friends reduce complexity, they give us emotional security and enable us to make decisions again. They bring light into the jungle of offers and make life easy and beautiful for us.

What made Amazon the big breakthrough

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Recommendation mechanisms have given Amazon the big breakthrough. Today probably nobody is aware that already 1998 on his Online-Marketplace introduced the famous five-star rating system plus review text.

In order to evaluate the quality of the rating, the addition “Was this review helpful to you” and a comment function added the option of rating the reviewer a little later. Most of the time they buy customers then also where you read the review.

So you too can start positive Collect customer feedback and make it publicly visible. Reliable recommendations from third parties are provided by interested parties Orientation and reduce that Risks, To make mistakes. They promote our private and professional advancement. And they help us save a lot of time.

Chechlist: When to build on recommendations

Above all, we resort to a recommendation

• if it is difficult or expensive to get an overview of the respective market, all providers and their services,
• if offers are complex or strongly explanatory,
• if we lack the necessary expertise,
• if we lack the necessary leisure,
• when products are relatively expensive,
• if we have to enter into a long-term commitment,
• if we can not afford a fault,
• if we can not decide,
• when it comes to our security,
• when it comes to a high degree of trust.

Those who are unsure themselves are acting wisely when they join those who willingly share their experiences and insights. Because he has - says our cerebral danger radar - survived a comparable situation. Recommendations are the link between familiarity and uncertainty. They lay the stepping stones and make the path safe and free. Therefore is recommended Shop even so light to get.

Why are people active as a recommendation?

Discounts for your success (advertising)!

A first-class recommendation is a great way to adorn oneself, one's prestige and one's self-esteem increase. You can present yourself as a connoisseur. You can influence people and so to a certain extent Sinn also exercise power. Or you can help and do good to others. In this way, trustful relationships can be built and friendships consolidated.

In most cases, the motivation of a recommender is material profit, but rather this: being “someone” or being able to contribute something.

Especially in the case of oral propaganda, another aspect is relevant: to be one of the first to get wind of a thing and thus to be a member of an initiated circle of pioneers. A product that makes itself scarce and exciting through artificial scarcity, makes use of this aspect in a special way.

A bad recommendation destroys social capital

So give potential prospects something that makes them look good, with which they can benefit others or profile themselves. Then it has good chances to be recommended by them.

However, recommendations are always subjective - and very personal. They also say something about their own values. And they polarize. What you recommend, you like a lot - and not at all.

For what one speaks with passion, one sometimes goes through the fire. And something you hate as the plague, because it has a deeply hurt or disappointed, you want to destroy grim.

Mediocrity is never recommended

Willingness to recommend not only requires remarkable product features, but also always good relationship work. And for this two things are required: knowledge of human nature and superlatives.

Those who precede a recommendation emotions only get going when something turns out to be particularly good or bad. Mediocrity is never recommended. Only in the area of ​​the peaks, when we are deeply satisfied or are extremely dissatisfied, we will actively recommend or advise you.

Checklist: When will you be ready to recommend?

In addition,

• if you can express your personality,
• if one can nourish coolness and the need for validity,
• if one can contribute to the welfare of others,
• if one can shape itself through insider knowledge or as a pioneer,
• if you can feel belonging and part of a community,
• when involved in the development processes,
• if something entertaining or sensational is provided,
• if something completely new or very exclusive is offered,
• if something very useful or desirable is offered,
• if there is something to win or to play.

In a nutshell: people don't just want Money and Fun, they also want to experience themselves as “important”. You want to do something meaningful. And leave traces. And be considered a valued member of an honorable community. Anyone who helps them to do this will be rewarded with valuable and at the same time effective recommendations.

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