We call Reciprocity the glue that binds us as a society.

No surprise then that it’s a powerful tool to help people make decisions that are both pro-social and a win-win.

When the Behavioural Insights Team were asked by the UK Government to increase the rates of job-seekers turning up to interviews, they applied the principle of Reciprocity to boost rates.

They changed the text message being sent out from:



“You’ve been booked an interview at Tesco on Friday at 10am”

to:

“Dave,
‍

I’ve booked you an interview at Tesco on Friday at 10am. 


Good luck. 


Roxy”

This shift from a passive tone of voice to an active tone, where Roxy had done something kind for you (and you then wanted to reciprocate by turning up), increased attendance from 10% up to a whopping 27%.

We call Reciprocity the glue that binds us as a society.

No surprise then that it’s a powerful tool to help people make decisions that are both pro-social and a win-win.

When the Behavioural Insights Team were asked by the UK Government to increase the rates of job-seekers turning up to interviews, they applied the principle of Reciprocity to boost rates.

They changed the text message being sent out from:



“You’ve been booked an interview at Tesco on Friday at 10am”

to:

“Dave,
‍

I’ve booked you an interview at Tesco on Friday at 10am. 


Good luck. 


Roxy”

This shift from a passive tone of voice to an active tone, where Roxy had done something kind for you (and you then wanted to reciprocate by turning up), increased attendance from 10% up to a whopping 27%.

407 pedestrians in Brittany, France were approached by a young woman and asked to complete a survey. Before the request, half were offered candy and the other half were not.

The results found that people - especially women - were far more likely to reciprocate and answer the survey after receiving a gift than when not.

Act first.‍

Find ways to initiate reciprocity with consumers.  Merely asking those satisfied to go tell their friends will work (Söderlund et al., 2015).

Make it a ‘common habit’.

When we’re told that a behavior is a social norm shared by others, we’re more likely to reciprocate. Households in USA and India consume significantly less electricity when told that their neighbors are consuming less (Sudarshan, 2014). In the long-term, any consistent, successful behaviors will be adopted as the default for others.

Do it in person.

Reciprocation appears to be more powerful when requests from strangers are made face to face rather than online. This is due to the persuasive impact of immediacy that physicality affords, the higher levels of digital suspicion and the sheer number of emails people receive (Meier, 2016).

The food choices of 89 people both dieting and not dieting were analyzed in a cafe. Diners were given a menu with either information highlighting low-calorie options or not (the control).

Results showed that dieters primed with the reminder of their future goal consistently made healthier food choices than unprimed dieters.

Who is the target group?

‍They could be people who are motivated to protect the environment, improve productivity at work or improve the quality of their lives. Note: they must have already stated a desire for this goal. Your prime will merely aim to nudge their existing Commitment to meeting their own aspirations.

Where can you trigger these long-term motivations?

As well as environment, timing also matters, so make sure that you do so very close to the actual decision point, i.e. at the start of a meeting, at the ordering counter or on the inside of a restroom door.

Boost with the Spacing Effect.

What's the specific behaviour that you're allowing them to perform to help move them towards their long term goal?

It has to be obvious and easy to do, such as clearly identifying an eco-friendly substitute, bolting on a salad or opting for an equally-priced, dairy-free option.

Almost anything can be collected, but to promote collectibility of your products, you should release them in identifiable sets (Carey, 2008). Use names, symbols or colors to connect products. Even subtle additions like a numbering system can turn a mere range of products into a collection.

Self-identity is a primary motive for collecting (Smith et al., 2008), so creating distinction through scarcity (“I have this but you don’t”) is key to increasing consumer status.  Hold back or stop supply of certain items to create a secondary market. 

Create a community to foster social value of your collection. This provides social acceptance - one of the core reasons people collect (McIntosh and Schmeichel, 2004). Social also heightens resell value.

Release collectibles in waves over time (Bianchi, 1998). This will increase the overall enjoyment of the experience and increase the desire to collect. Never saturate the market with too many sets, variations within sets or too many limited editions (Hood, 2006). Overproduction will kill the magic and therefore consumers’ ongoing desire to collect. Don't make the pursuit too easy to achieve (Csikszentmihalyi, 1990), but also not so large a task as to be out of the reach of your audience (McIntosh and Schmeichel, 2004).

121 students were shown one of 3 adverts for watch brand Swatch. Either a control with no sales event, a limited-time sale (6 days) or one limited in quantity available (100) triggering competition. They were then asked how likely they’d be to buy the watch.

Those in the competition condition were more likely to buy than those under time pressure.

A little competition can be fun.

‍We are naturally competitive; where there are numbers, there are games. And though it shouldn't be the only driver of behavior change, subtle uses with measurable goals, leaderboards and appropriate Rewards can provide benefit. What positive behaviors do you want to encourage? Tell the Story of why the competition exists to help motivate further. Ensure that the competition also aligns with others' own aspirations.

Allow everyone to ‘succeed’, regardless of ability.

Bad competition creates clear winners and losers, which can demotivate the latter and reduce behavior change. Good competition includes ways to celebrate all efforts to reach a goal. Be sensitive to our desire to compare, e.g. only show individuals their relative place in a leaderboard.

Make competition team-based.

‍Too much competition can reduce internal motivation. However competing as broader teams can prevent this. Collaboration is a powerful tool to use with competition to foster new collective norms around the intended behavior.

150  students completed a simple task and were split into two groups and given either positive or negative feedback on their performance. They were then shown either a one-off print or a mass-produced one and asked how much they’d pay for it.

Those given negative feedback were willing to pay almost 4x more on average for the unique print than those with positive feedback, showing how we use consumption to heal our sense of status.

There are multiple ways to elevate brand status:

‍Form strategic alliances with successful others with whom you share compatible goals (Thorndike, 1920), e.g. Go-Pro and Red Bull.

Develop your core purpose to raise your products’ perceived value (Chernev & Blair, 2015), e.g. Patagonia who “use business to inspire and implement solutions to the environmental crisis.” 

Create and control new ways of promoting industry excellence. Dribbble, a platform for design teams to show off their work provides paid-for "Pro Business" status badges to distinguish the best from the rest.

Invest in a tiered loyalty scheme to elevate consumers’ status & brand attachment (Nunes & Dréze, 2006), e.g. British Airways Executive Club.

274 people were shown 10 t-shirts, split into 4 groups and then asked to rate the shirts on either likeability, casualness, colorfulness or how much it matched with a cap. They were then asked how fun the task was.

Those given the ability to express their like or dislike rated the task as much more fun than the other groups. Simply, we value ways to express how we feel.

Personalization pays.

Bold, scaleable self-expressive features increase loyalty and sales.

Coca-Cola’s #ShareaCoke campaign - switching out the product name for a person’s name - led to a 10% rise in 2014 sales and a 7% spike in Facebook growth.

An Australian store sold 400,000 customized jars of Nutella for $10 each, becoming their top seller.

Tie it back to emotions.

Though there are successes like Kraft Heinz personalized soup “Get Well Soon ___”, with consumers happy to spend five times more, know that personalization has upper bounds on price and has less impact as it becomes more common.

Like Heinz, the smartest brands will tie personalization to underlying product emotions - care and sympathy in this case.

What emotions do you want end consumers to feel? Use personalization to help express these publicly.  

47 subjects were given around 20 small, manual tasks to complete, one at a time. Experimenters randomly interrupted completion of half of these tasks. After, subjects were asked to recall as many tasks as possible.

There was a 90% higher recall of incomplete and interrupted tasks than those completed.

Make important task completion frictionless. If customers leave your site without finishing their order, make it effortlessly easy to get that completion feeling, such as allowing for completion with a single click, tap or swipe. 

Focus on completion’s emotional release. Providing reward incentives for task completion actually demotivates consumers. Instead, remind them not just of the product they’ve not yet bought, but of the feelings that this ‘purchase task’ will unlock. 

Make known campaigns incomplete and interactive. Greater familiarity with an advert increases consumer ability to complete an interrupted ad message. Active participation also boosts ad memory (Heller, 1956). So if your popular campaign’s reaching its end, consider a special second follow-up version that allows for active participation in completing the ad message. 

195 students were asked to fill out a lunch order survey in return for a free lunch. They were split into two groups and  asked either a few hours prior to or just before lunchtime.

Those asked with the delay made food choices 11% lower in calories than those just before lunch.

Adapt with time-to-delivery.

Online grocers could change what’s shown to the user based on how many days out their delivery slot is, showing more aspirational goods in the week prior and impulsive goods the day before. 

Build around customers’ goals.

Have them make a preference on your site for their future self i.e. that they want to lose weight or save more money this year. Then, have this preference dictate what products are shown to them online, along with a subtle reminder that you’re helping with their bigger goals.

Encourage “future lock-ins.”

‍Banks could improve consumer savings by allowing pre-registration for a future savings account. Consider locking in other types of ‘should’ decisions that will benefit the consumer’s future well-being, as well as reducing your costs through better demand forecasting.

36 children, young adults and adults were asked to choose between a delayed reward of $1,000 and a number of smaller ones now.

All were quick to accept smaller rewards now over a larger delayed one. The longer the delay, the less perceived value the reward had, so $1,000 next week felt equal to $900 today but $1,000 in five years felt like $600 today.

Embrace the power of now.

‍Immediate gains are valued more greatly than those far off. Similarly, far-off costs seem less painful. Amazon heighten the immediate gain by taking a hit now, for longer term business payoff.

Where in your business can you capitalize upon 'the now'?

‍

Prevent impulsive financial or health decisions by:

• Reframing future rewards around time (by stating a specific date) or by surfacing the painful zero outcomes of short-term choices (Wu & He, 2012).

• Goal Priming. Painting a vivid, personal, emotional picture of someone's future reality will boost their ability to make longer-term decisions now.

Dissuade from inferior choices today with a lock-in for tomorrow

This is when a choice now locks in a set of future inferior outcomes, aggregating any gains and forcing a stronger consideration of less impulsive choices. 

682 colonoscopy patients were split into two groups, with one undergoing a longer procedure but with a period of less discomfort added on at the end.

After, patients were asked to recall the total pain felt. The peak-end group reported 10% less pain and a 10% increase in attending a follow-up procedure.

How do you want to be remembered in customers’ eyes?‍

How do you want to leave them feeling? What little touches can you add to your product or service to leave customers feeling amazing and want to share with their network?

Create a Customer Journey Map

Identify positive experiential opportunities to exploit and painful weaknesses to remedy.

Some pains may be small or cheap to fix, yet play a big part in a person’s memory.

Negative experiences are a hidden opportunity...

...to re-establish a positive peak and / or end. Things will go wrong, whoever’s at fault, so allow flexibility and an authentic humanity to surface, not just to save the relationship but to allow the brand to shine.

Handle a problem well enough and that’s what customers will remember, not the problem itself.

87 students were told that two men won in lotteries: Mr A won $50 in one lottery and $25 in another. Mr B only entered one lottery and won $75. The students were then asked who they believed to be happier.

Results showed that students believed the segregated Mr A to be happier with his winnings.

Segregate the good.

‍Two small gains trump one large one. Be it team victories, feature announcements, product packaging or loyalty benefits, where can you break up the good into smaller, bite-size pieces?

Highlight silver linings.

‍Separate a small gain from a larger perceived ‘loss’ to reduce consumer pain. For example, instead of offering a temporary price reduction, offer a special rebate equal to the proposed discount.

Don't separate too small. We have a low-end threshold below which we experience no joy (Morewedge et al., 2007). Breaking a cookie into crumbs results in almost zero joy. Banks offering current account holders low monthly 'loyalty rewards' would do well to reframe them into larger, more meaningful chunks, or not do it at all. After all, no one wants to be reminded of the meaninglessness of their loyalty.

129 people were split into 2 groups, with half asked to either write about a time when they felt nostalgic or a neutral event. After writing, everyone was given $5 to distribute between themselves and a random other.

The results showed that on average, neutrals only gave away $1.43, whereas nostalgics gave $2.

Understand what nostalgia means for your target audience. Brands, products and campaign messaging can all gain from referring to the past to loosen our wallets. Nintendo are now rereleasing their 1985 NES console, for example.

Use to promote social behaviour. Since nostalgia causes a reduction in one’s desire for money,  it can instead be used to increase charitable donations or promote participation in a charitable event. 

Digital nostalgia is growing, as our online history of archived experiences deepens. The opportunity to capitalize upon this powerful effect will only increase. e.g. Facebook is now reminding us of our past experiences, using nostalgia to keep us emotionally bound to their network.

88 household individuals were split into three groups and  asked to either wear a badge supporting a  charity, asked to wear one along with another family member or not to wear at all. That same evening, all groups were then asked for a financial donation to the charity.

Those who were first asked the small request were far more likely to go on and donate money than those who weren’t.

Start with a question promoting reflection on one’s values. Their answers will create a desire to be consistent with their beliefs.

Have people perform a small related action. e.g. People who put a small “Drive carefully” sign in their window are more likely to follow the instruction than those who merely say they will. Frame it as a social norm.

Prime the ‘helpful’, ‘cooperative’ ‘supporter’ with positive feedback prior to a future request. 

Make the target request a continuation of the initial one. The more similar the activity, the greater success. Also balance your request sizes. If the initial request is too big, people won’t do it, never getting to the target request. But too-small tasks will widen the gulf between the two.

105 people were shown an online promotional offer, with the final offer value of 40% revealed either immediately or only at checkout.

Those in the extended curiosity condition were more likely to buy with the promotion than those who were told of the offer value immediately.

…curiosity will always be effective.

A recent campaign by Cancer Research UK to fill missing letters of the second-most common cause of cancer led to a 22% increase in its awareness. 

How can you use curiosity to drive a desire to learn about a new product or important message?

Create positive curiosity.

Vacation company srprs.me let you choose the number of people, dates and continent. You then get a scratch card to reveal your destination…but only at the airport!

‍

Use to convert free to paid.

‍Popular dating app Bumble uses curiosity to drive conversions. People who’ve already liked you are shown, but with their faces pixelated and no further information shown. Users are then prompted to buy BumbleBoost to close the information void.

310 US Amazon Prime customers were split into 2 groups, either on a free trial or on a paid membership. They were then queried about attitudes towards and value perceptions of Prime and its benefits.

Those on the paid subscription reported greater loyalty, perceived value and exhibited a higher monthly spend than those who were on the free trial.

This is driven by two core effects:

1) Sunk Cost Bias where we seek to justify past, non-recoverable costs (of membership access) with our current actions (more spending), even when it’s not in our best interests. 

2) A desire to remain consistent with our past commitments - “I’m a Prime customer now.” 

Create a members club. Putting a price on entry heightens our analysis of the benefits of joining in a way that we wouldn’t if it were free. Limiting access to certain products or benefits can signal higher perceived quality (Zeithaml, 1998) and an increased willingness to buy.

Amazon entice with convenience (‘free’ one-day shipping), priority (30-min Early Access Lightning Deals) and exclusive choice (a vast music, video and book library). What benefits would your own customers pay for? What feelings can gaining access promote?

11k people were offered a new job that had a 50% chance of doubling income for life, but it wasn't without risk, with an equal chance of it falling by either 20, 33 or 50%. Questioning started with the 33% gamble; if people took it, they were asked if they’d take the bigger 50% gamble too. But if they didn’t, they were asked about the smaller 20% one.

Results put people into four risk categories showing the majority were not willing to take any risk at all.

Focus on an improvement metric. 

We prefer the certainty of what we’re used to, so the benefits of switching to a new product need to feel substantial.

Outline a goal (relative performance, efficiency etc.) to anchor your product strategy around.

Doing so will reduce uncertainty and boost comparisons against better-known, lower risk alternatives.

Offer a trial or free sample...

...to create familiarity and reduce the risk around a new product.

This sets the cost of new product usage at zero, during which the consumer will adjust their future preferences.

Utilize your brand umbrella.

For any new sub-brands, reduce risk by clearly indicating the relationship to existing, familiar brands you own (Erdem, 1998).  

Product brands take note. Risk aversion is higher for material purchases than for experiential ones such as restaurant meals or holidays (Roche et al., 2015).