Law of reciprocity in business
Reciprocity Quotes (76 quotes)
The Importance of Business Reciprocity
Within the study of the psychology of relationships is a principle called reciprocity, which speaks to the human need and tendency to want to give something back when something is received. Reciprocity affects us every day. When done right, the principle of reciprocity is a powerful tool in the acquisition of new customers as well as in the development of existing customers. It can facilitate stronger, deeper, and longer lasting relationships with customers and advocates alike. Aside from the basic concept of reciprocity, what we learn from this case study is the power of the unexpected gift. This concept, when implemented correctly, can be a commanding aid for businesses in driving referrals and revenue.
We automatically feel indebted to the giver, regardless. I admit this sounds a little creepy. But, on the face of it, the reciprocity principle seems reasonable. But, is this good feeling a strong enough motivation on which to build a marketing campaign? Yes, it is. It works, amazingly well, especially for tough sales. Several years ago, we were hired by a company that lends money to large plaintiff law firms involved in product liability and medical malpractice lawsuits.
Do you ever get that feeling if a new concept, idea or image shows up in your awareness three times then you should pay attention? Well, the Law of Reciprocity has been showing up everywhere in my awareness the past few days. I like the way Gary describes it in his Reboot Authentic blog: Social psychologists call it The Law of Reciprocity — and it basically says that when someone does something nice for you, you will have a deep-rooted psychological urge to do something nice in return. As a matter of fact, you may even reciprocate with a gesture far more generous than their original good deed. You can try and resist this law, but as a human, you will more than likely still feel that you need to respond in kind to a good deed. As I was listening to Aubrey Marcus talk about how he structures business in a way that always feels generous and positions him powerfully in negotiations, I thought about conversations with my clients around money.
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There are your employees. There are the vendors who provide needed support services to help you run your business. Maintaining quality relationships with each of these groups will prove vital for your lasting success. I feel obligated to reciprocate. This is why you see so many startups, particularly SaaS companies , offer free trials that allow users to try those companies' services before buying. As Sukhraj continued, a free trial for SaaS prospects lets them "see behind the curtain.