People feel an obligation to do something for you when you’ve done something for them. This is known as the principle of reciprocity. You’re more likely to buy a gift for someone who bought one for you. You’re more likely to invite someone to your wedding if they invited you to theirs. You’re more likely to buy something if the seller gives you something for free. Those free samples at Costco are more than just a fun membership perk — they serve as a catalyst for your purchasing decisions. Reciprocity is a powerful psychological principle that can help you to grow your business faster. Research proves that reciprocity can be powerful Sociologist Phillip Kuntz conducted a study in 1974 testing out reciprocity tendencies in complete strangers. Kuntz mailed approximately 600 Christmas cards out to people he had no relationship or contact with. He wanted to know how many would feel obligated to return the kind gesture. As it turns out, he received around 200 cards in response. One in three of the card receivers were influenced by the Principle of Reciprocity enough to initiate action. The Behavioral Insights Team tested the principles of reciprocity differently. A group of investment bankers was asked to donate a day of salary to charity. While many complied, researchers found that when the request was accompanied by a bag of candy, the number of bankers who opted to donate doubled. That is a very small investment for a big payoff! Bankers weren’t the only ones influenced by sugary treats. David Strohmetz of Monmouth University conducted an experiment with his colleagues on service tips in relation to reciprocity. The experiment, set in a restaurant, showed that waitstaff could increase tips by 3% when they bring candy along with the bill. Tips jumped up to a shocking 14% when customers were offered two pieces of candy and rose even further (21%) when the wait staff delivered a single piece of candy and returned a minute later to give another piece because it had been “such a great table”. How Your Business Can Use Reciprocity To Grow Faster 1. Give customers and prospects a gift before you ask for something. Giving something first can seem counter-intuitive, but offering a gift or service without the expectation of something in return can be profitable. As we previously mentioned, Google Music offers free trials to new users. Google doesn’t ask consumers for any type of commitment before letting them access the free trial: Google offers a 4 month free trial to new users of its music streaming platform. Google acutely knows that if you invest 4 months into streaming music on their platform (which can include building personalized playlists, radio stations), you are much more likely to continue the service. Here at crowdspring, we offer free, no-obligation design consultations every day. We have design experts standing by willing to help potential clients out with everything from logo design to product design — even if it means referring them to our competitors...
↧