SUMMARY
Our brains use handy, useful shortcuts, like heuristics, to make decisions. One popular one is reciprocity – or the idea that we’ll repay debts of all kinds.
In this episode of Catalytic Results, Founder Hamid Ghanadan explores why we tend to feel obligated to pay someone back.
The key to reciprocity in marketing? Deliver it with integrity. Demonstrate a true and genuine act of giving, without any expectation of getting something in return. By understanding this, B2B marketers can leverage the reciprocity heuristic to influence their audience to make decisions.
How many of you invited guests to your wedding because they invited you to theirs? Or helped a friend move because they helped you? Quid Pro Quo, right?
Reciprocity.
It’s an ancient and powerful social norm. In fact, there isn’t a society in the world that doesn’t practice this norm. It makes up the fabric of the way we live, and as a result, makes it an influential tool — one that people can’t resist when it’s employed properly.
Understanding how reciprocity works can create… Catalytic Results!
Reciprocity firmly states that we’re likely to repay debts of all kinds. When someone does something for you, you feel obligated to pay them back. It’s almost an automatic reaction.
If someone is the first to receive a favor or gift, it is more likely that they will feel obligated to match that and return the favor.
The brain uses heuristics—or shortcuts—to make decisions. And one shortcut is our brains’ desire to repay a debt we owe.
Our brains can easily and quickly recognize who we need to say “yes” to based on past experiences. This sense of debt is so deeply embedded into us that we’re not even consciously aware of it. Remember, it’s the feeling of owing someone. And in most cases, people are more likely to say yes to those they feel indebted to.
One of my favorite examples of reciprocity is from Dr. Robert Cialdini’s “Universal Principles of Influence.”
Did you know that the number of after-dinner mints a wait-person leaves you when they drop off your check will greatly affect how much you tip them?
Researchers wanted to see if giving a mint to a person influences the amount they tip. I know you’re guessing that the answer is ‘no’. I thought the same thing, but their research suggests otherwise! If the patron is given 1 mint, the tip is likely to increase by 3 percent compared to no mint at all. 2 mints? The tip increase doesn’t double, it quadruples, to 14 percent more than the control!
But what if the waiter drops off one mint, leaves, and then comes back with another? The tip you leave is likely to increase by another 23 percent! That’s astounding. You can clearly see that it’s not just the mint, but when it’s combined with an act of giving, most people will feel they owe a debt, and will repay in kind with a higher tip.
For reciprocity to work, it must be delivered with integrity.
In technical industries, knowledge is power, yet noise is infinite. There are so many facile ‘giveaways’ that are of very little to no value. Audiences can’t tell which offer is of true value and which isn’t, so they’ll ignore everything.
To generate a sense of indebtedness, companies should demonstrate a true and genuine act of giving, without any expectation of getting something in return.
Humans are beautifully complex. And our actions are governed by certain patterns. Understand these patterns, you can inspire people to action and create Catalytic Results.
Business Examples + Studies
Reciprocity is the first of six of Dr. Robert Cialdini’s popular principles of persuasion. Watch this video for an illustrated example of each.
Perhaps you’ve signed up for a loyalty program, and you received a free gift in return? Companies like REI, CVS or Pampers offer freebies to their members when they sign up to be a part of their email lists or loyalty programs.
In 2011, Converse set up a recording studio, Rubber Tracks, where musicians and artists could use the facilities for free. Converse didn’t expect anything in return besides opening up the opportunity for up-and-coming artists to use their space to express creativity.
If you have a blog on your site, chances are you’re already using the reciprocity principle. If a visitor reads a post on your blog for free, they may feel more obligated to do business with you.
Have you ever started a free trial of something and wanted to pay for it after your trial was up? Spotify does this well with its premium program. You can cancel it at any time, yet when your trial is up, you might feel compelled to pay for it because of all the perks you already received from the media provider.