Saturday, January 13, 2007

Obligation Marketing

A film-developing company thrived on the Law of Obligation. They would send a roll of film in the mail along with a letter explaining that the film was a free gift. The letter then outlined how the recipient should return the film to their company to be processed. Even though a number of local stores could process the film at a far lower price, most people ended up sending it to the company that had sent them the film.

The technique worked because the company's "pre-giving" incurred a sense of obligation to repay the favor. We often see this method at work when companies give out complimentary calendars, business pens, T-shirts, or mugs.

The same principle applies when you go to the grocery store and see those alluring sample tables. It is hard to take a free sample and then walk away without at least pretending to be interested in the product. Some individuals, as a means of assuaging their indebtedness, have learned to take the sample and walk off without making eye contact. Some have taken so many samples, they no longer feel an obligation to buy or even pretend they're interested in the products anymore.

Still, the technique works, so much so that it has been expanded to furniture and audio/video stores, which offer free pizza, hot dogs, and soft drinks to get you into the store and create instant obligation.

Pre-giving is effective because it makes us feel like we have to return the favor. Greenburg said this feeling of discomfort is created because the favor threatens our independence. The more indebted we feel, the more motivated we are to eliminate the debt. An interesting report from the Disabled American Veterans Organization revealed that their usual 18 percent donation response rate nearly doubled when the mailing included a small, free gift

In a local clothing store, the sales staff are trained to ask customers whether they want to have their suit jackets pressed at no charge while they are shopping. Of course, hardly anyone ever refuses. While they wait on their jackets, they naturally have to spend more time in the store, whereby they occupy themselves by checking out all the merchandise. Because the store is pressing their jackets, the customers feel more indebted to buy. Moreover, when they do decide to buy something, they are more likely to buy it from the salesperson who pressed their jacket

Another study found that survey takers could increase physician response to a long questionnaire if they paid the physicians first. When a $20 check was sent along with the questionnaire, 78 percent of the physicians filled it out and sent it back. When the $20 check was promised to arrive after the questionnaire was completed and sent in, only 66 percent followed through. The pre-giving incentive increased the sense of obligation. Another interesting result of the study was this: Of the physicians who received the $20 check in the initial mailing but did not fill out the questionnaire, only 26 percent cashed the check. Of the physicians receiving the $20 check who did fill out the questionnaire, 95 percent cashed the check!

This demonstrates that the Law of Obligation works conversely, as well. The fact that many of the physicians who did not fill out the questionnaire also did not cash their checks may be interpreted as a sign of their psychological and emotional discomfort at accepting a favor that they were not going to return. If they cashed the checks, they would have to cope with their indebtedness by complying and filling out the questionnaire. Rather than take on that uncomfortable sense of obligation or indebtedness, it was easier to sacrifice the benefit of gaining $20 altogether.

The Law of Obligation also presents itself in the following situations:

* Taking a potential client out to dinner or to play golf
* Offering free tire rotation or fluid fill-up between services
* Someone washing your car windows at a stoplight whether you want them to or not
* Generating money at "free" car washes by asking for a donation after the service is rendered
* A carpet cleaner offering to clean your couch for free

How can you apply the Law of Obligation to your industry?

Kurt Mortensen’s trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.

A film-developing company thrived on the Law of Obligation. They would send a roll of film in the mail along with a letter explaining that the film was a free gift. The letter then outlined how the recipient should return the film to their company to be processed. Even though a number of local stores could process the film at a far lower price, most people ended up sending it to the company that had sent them the film.

The technique worked because the company's "pre-giving" incurred a sense of obligation to repay the favor. We often see this method at work when companies give out complimentary calendars, business pens, T-shirts, or mugs.

The same principle applies when you go to the grocery store and see those alluring sample tables. It is hard to take a free sample and then walk away without at least pretending to be interested in the product. Some individuals, as a means of assuaging their indebtedness, have learned to take the sample and walk off without making eye contact. Some have taken so many samples, they no longer feel an obligation to buy or even pretend they're interested in the products anymore.

Still, the technique works, so much so that it has been expanded to furniture and audio/video stores, which offer free pizza, hot dogs, and soft drinks to get you into the store and create instant obligation.

Pre-giving is effective because it makes us feel like we have to return the favor. Greenburg said this feeling of discomfort is created because the favor threatens our independence. The more indebted we feel, the more motivated we are to eliminate the debt. An interesting report from the Disabled American Veterans Organization revealed that their usual 18 percent donation response rate nearly doubled when the mailing included a small, free gift

In a local clothing store, the sales staff are trained to ask customers whether they want to have their suit jackets pressed at no charge while they are shopping. Of course, hardly anyone ever refuses. While they wait on their jackets, they naturally have to spend more time in the store, whereby they occupy themselves by checking out all the merchandise. Because the store is pressing their jackets, the customers feel more indebted to buy. Moreover, when they do decide to buy something, they are more likely to buy it from the salesperson who pressed their jacket

Another study found that survey takers could increase physician response to a long questionnaire if they paid the physicians first. When a $20 check was sent along with the questionnaire, 78 percent of the physicians filled it out and sent it back. When the $20 check was promised to arrive after the questionnaire was completed and sent in, only 66 percent followed through. The pre-giving incentive increased the sense of obligation. Another interesting result of the study was this: Of the physicians who received the $20 check in the initial mailing but did not fill out the questionnaire, only 26 percent cashed the check. Of the physicians receiving the $20 check who did fill out the questionnaire, 95 percent cashed the check!

This demonstrates that the Law of Obligation works conversely, as well. The fact that many of the physicians who did not fill out the questionnaire also did not cash their checks may be interpreted as a sign of their psychological and emotional discomfort at accepting a favor that they were not going to return. If they cashed the checks, they would have to cope with their indebtedness by complying and filling out the questionnaire. Rather than take on that uncomfortable sense of obligation or indebtedness, it was easier to sacrifice the benefit of gaining $20 altogether.

The Law of Obligation also presents itself in the following situations:

* Taking a potential client out to dinner or to play golf
* Offering free tire rotation or fluid fill-up between services
* Someone washing your car windows at a stoplight whether you want them to or not
* Generating money at "free" car washes by asking for a donation after the service is rendered
* A carpet cleaner offering to clean your couch for free

How can you apply the Law of Obligation to your industry?

Kurt Mortensen’s trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.