Friday, July 19, 2013

How brands can pay it forward

Storytelling is one of the oldest aids for memory. It is also one of the oldest examples of viral marketing as stories were shared throughout communities, between cities and eventually, across the world.

For brands, storytelling can also be an invaluable aid for memory and sharing. When paired with word of mouth incentives, a successful viral marketing campaign is close at hand.

But the reasons people choose to recommend a product or refer a friend changes often and in context of the rest of their lives. Plus, do referral programs actually help keep brands top of mind?



Two recent studies ask what motivates people to either recommend a service or change their consumptive behaviors.

In the first study, one group was given the option of recommending a service in exchange for a discount (selfish incentive). The second group could also choose to recommend the service, but the friend who received the recommendation would get the discount instead (generous incentive).

In which situation did more people recommend the service? The generous incentive.

In the second study, researchers wanted to know what reasons would cause people to change their habits around energy use. During a heat wave one summer, researchers put one of four signs on people’s doors throughout the city. Each cited a different reason to use less energy:

1.     Save money
2.     Save the planet
3.     Be a good citizen and prevent a power outage
4.     The neighbors are saving more energy

Which lowered energy usage? Only reason number four.

The motivation
Both of these studies tie in the human desire to feel good about oneself.

When we choose to recommend a service, we put our own credibility on the line. With an automatic benefit to the receiver, there is less risk to the sender. At best, the item itself is beneficial, and a new, shared experience now exists between the people.

In the second study, residents are motivated to change because of the direct comparison to others from a comparable group. We all like to be within the norm of those we consider similar to us. By showing us where we fall in the mix, we’ll try to return to our perceived spot.



What about brands?
It’s hard to be remembered first by customers, especially for good reasons. It’s difficult to rebuild brand stories with customers as the hero rather than products or services. These studies show ways to put customers at the center and engage them in meaningful, memorable ways.

Competitions motivate us to raise our standards. We want to be seen as both a team player and someone who stands out. Generous incentives help people form memories that start with the brand and end with the people who matter to them. When good brand experience is paired with meaningful moments, brands rise to top of mind. 

Ultimately, it’s possible to both create stories around your brand as well as develop advocates within your customers in order to achieve mutual goals. Brand stories then become branded stories, which are authentic and alive. 

Any other ways you've helped customers tell their stories? Let me know @Jess_so_cool #newstories

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