Have you ever received sheets of address labels in the mail from a non-profit organization that also conveniently included a form for donating to the group? Or maybe a pen with your name on it (often misspelled) or perhaps a set of hand-drawn notecards by one of the children the group supports? How did you respond? Did you send money to the group out of a sense of guilt or did you keep the gift and throw away the donation information?
Welcome to the Law of Reciprocity, something sociologist say is drilled into us as children and occurs almost universally throughout all cultures. It’s the reason we feel compelled to respond in kind when given a gift or even something as simple as returning a hello when we pass a stranger on the street. Studies have shown those address labels, when included with a donation request, raise the response rate from 18% to 35%. By including a gift that cost a few pennies to produce, recipients almost doubled the amount of money they donated. And that’s an amazing response rate.
Or take the case of a young sociologist at Brigham Young University who, in 1974, decided to conduct an experiment. Phillip Kunz randomly chose 600 people he didn’t know and sent them either a hand-written Christmas card or one with a photo of Kunz and his family. In response, he received back some 200 cards, many with long, hand-written notes of their own about the sender’s family and wishing good tidings to Kunz. And he continued to receive them for the next 15 years.
How can reciprocity help us in business and our lives on a daily basis? Here are four ways I’ve seen this law used to build relationships and increase sales.
Direct mail: As noted above, when a gift is included in a mailing the odds are greatly increased the recipient will respond favorably. Keep this in mind when inviting customers and prospects to a trade show or when seeking to set an appointment with someone you may not know. Reciprocity doesn’t mean you’ll always convince someone to come to your booth, meet with you or even buy from you, but the chances improve dramatically if a small gift is involved.
Unreturned calls/emails: Studies have shown the average number of touches before you reach a prospect or get them to respond is eight. I’ve personally used the Law of Reciprocity to reduce this number substantially. If after three or four unresponsive calls or unreturned emails, I’ll send a small gift in the mail with a note that says I understand they are busy and I’d just like five minutes of their time to introduce myself and see if there might be a need for my services. While not scientific, I’d say 50% – 75% of the time they will take my next call or respond to my next email in some way and that might be a no.
Trade shows: A study a decade ago by Georgia Southern University found people were more likely to stop by a trade show booth when invited beforehand and told they would receive a gift in exchange for their invitation. I always advise customers to have an inexpensive promo product for everyone who comes by and a nicer gift for those who are current customers or interested prospects. If these branded products are unique and functional, not only will these people keep and use them, but they’ll be advertising for the company as well.
Everyday interactions: It’s no secret customer service has declined in every area due to layoffs, acquisitions and a myriad of other factors. I’ve seen it personally and heard stories from others who’ve said a kind word or a small gift has helped them get what they wanted. Be it an upgrade on a trip, the email address of a prospect from a receptionist or a better seat at a venue. Kindness is free to use and often makes the difference between whether someone will respond to your request or not.
As we head into a New Year, make the use of reciprocity one of your goals. It can be a powerful tool so use it respectfully and ethically. People’s B.S. meters will go off if they think you’re trying to scam or use them. Be willing to give of yourself freely, offer help to others, be a mentor and share your knowledge. This shows you’re a caring, honest and credible person and when the opportunity arises, they will be more amenable to returning the favor, sometimes in spades.
Pearl S. Buck, an American writer from the last century, spent the first 40 years of her life in China. Her first book The Good Earth was a semi-autobiographical look at the life of peasants in that country and resulted in a Pulitzer Prize. She spent her life helping others and she knew well this law and noted, “There is one word that can be the guide for your life - it is the word reciprocity.”
After several decades on-the-radio as a DJ and traffic reporter, Steve Woodburn MAS, stumbled, as most do, into the world of promotional products. He spent 27 years on the distributor side and the last three as a supplier, which gives him a unique perspective on this crazy business and life in general.