The Art of Give & Take: Reciprocity in Marketing

Reciprocity is a fundamental human instinct.

At its core, it's the mutual exchange of actions or benefits – the belief that a kind gesture should be returned.

In the world of marketing, however, it has more far-reaching implications.

When a brand offers value, consumers feel an inherent urge to reciprocate.

This means that the principle of reciprocity can be harnessed to…

1. Build consumer trust
2. Cultivate brand loyalty
3. Drive sales

In turn, tapping into this psychological impulse can have a huge impact on brand growth.

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The Psychology Behind Reciprocity

In his seminal book Influence: The Psychology of Persuasion, Dr. Robert Cialdini names reciprocity as one of six key principles that guide human behaviour.

The roots of reciprocity trace back to our evolutionary history.

Humans – as social beings – have always thrived in groups.

Cooperation and mutual aid were essential for our ancestors' survival, leading to an inherent sense of community and shared responsibility.

That’s why an unsolicited gift or favour still triggers an emotional and psychological urge to give back.

Receiving creates a mental disequilibrium, pushing us to restore balance through reciprocation.

People give back to you the kind of treatment that they’ve received from you. If you do something first, by giving them an item of value, a piece of information, or a positive attitude, it will all come back to you […] Whatever it is that you would like to get from a situation, you can increase the likelihood that it will be forthcoming if you provide it first.

Applying the Principle of Reciprocity

Brands go “first” through interactions with their audience.

Importantly, though, it’s NOT about tricking consumers into a sense of indebtedness through lazy incentives.?

The effects of this won’t be long-lasting.

E.g. thoughtless loyalty schemes → when people simply spend with a brand to accumulate points or other rewards, the result is a fickle relationship that doesn’t guarantee any allegiance.

INSTEAD, it’s about providing genuine value to your audience.

The modern consumer – equipped with limitless digital information and choices – demands this.

People must feel like they want to spend with the brand, not do it for short-term material rewards.

Brands can do this by creating amazing customer experiences.

Here are three ways you can do so…

Content Marketing

Consumers don’t want to be sold to anymore, and so brands must now offer more than just promotional, sales-y content

They must provide insights, tutorials, and knowledge, positioning themselves as industry "thought leaders".

The logic is simple:

1. When people are faced with a problem, they seek out authorities in the field.
2. By consistently offering insightful content, your brand will position itself as an authority (or "thought leader").
3. When customers are in the market for a product or service, they're more likely to turn to your brand having consumed your content.

The moral of the story?

Sales and revenue should never be your primary goal.

But when you aim to cultivate a tribe of loyal brand ambassadors through valuable content, it will be the natural by-product.

Loyalty Programmes

As previously mentioned, a traditional loyalty scheme will always miss the mark.

(Uber found that out the hard way, having cancelled their short-lived loyalty programme in 2022.)

If you’re going to offer a loyalty scheme, it must be a modern variation of it.

For example, offer…

• Early Access: Priority access to new features, products, or services. A company, for instance, might allow loyalty members to use or purchase a new offering before it's available to the general public.
• Personalised Rewards: Using data analytics, brands can understand individual customer preferences and tailor rewards accordingly. E.g. an eCommerce platform might offer discounts on items frequently browsed or wishlisted by a member, rather than a generic site-wide discount.

Free Trials & Samples

Letting consumers experience a product or service without any initial commitment is a trust-building exercise.?

The reason for this is twofold:

1. For the consumer, it reduces the perceived risk of making a future purchase.
2. The brand conveys confidence in the quality and value of their offering.

However, brands must ensure authenticity during this approach.

The product or service provided in the trial or sample MUST be representative of the brand's standard offering.

Reciprocity in Action: Dropbox

Dropbox's referral programme – offering additional storage space for referrals –- is a prime example of the power of reciprocity.

Users felt they were getting something of real value, and – in return – were more inclined to refer friends and family.

From 2008 to 2010, over 15 months following the launch of the programme, the number of registered users grew by 3900%!

100,000 → 4,000,000 users

Why It Worked

• The Product: Users loved Dropbox and found genuine value in it.
• The Reward: Additional storage space was a highly desired reward.
• Simplicity: The referral process was straightforward and user-friendly.
• Strategic Promotion: Dropbox promoted their referral program at key touchpoints, such as the first email after sign-up.

Key Takeaway

Brands that understand and genuinely implement this principle don't merely transact; they offer real value to their customers.

Only then do they evoke the human instinct to reciprocate.

In other words, the principle of reciprocity should be used as a way to build genuine relationships with your audience, not just as a tool for persuasion.

Give value, and value will return.

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