Reciprocity plays a crucial role in influencing behavior and can be leveraged to grow a successful side hustle by offering free value and surprise rewards to create a sense of reciprocity and foster customer loyalty.
Creating exclusivity in a membership community can increase perceived value and stimulate reciprocity among members, leading to a stronger bond and positive culture.
Deep dives
Reciprocity as a Powerful Weapon of Influence
Reciprocity, the concept of returning favors, is a powerful tool in influencing behavior. It has been proven effective in various studies, such as receiving Christmas cards from strangers after sending them first or increasing restaurant tips by offering an extra mint. Reciprocity operates across cultures and is deeply ingrained in human nature. In the podcast, Jay Klaus, a successful podcaster and content creator, shares how he leverages reciprocity in his $200,000 side hustle. He offers free content like newsletters, podcasts, and videos, creating value for his audience and triggering reciprocity. He also implements surprise rewards and personal interactions, such as one-on-one calls, to foster a sense of community and connection, further enhancing reciprocity. This principle has not only helped Jay gain new customers but also retain them in his membership community.
The Power of Surprising Gifts and Rewards
Surprising gifts and rewards have a significant impact on triggering reciprocity. Studies have shown that receiving a gift or reward before performing an action leads to greater compliance. Examples like receiving free samples in stores or surprise rewards with online purchases have shown an increase in purchase likelihood and perceived value. Moreover, studies have demonstrated that framing offers as gifts rather than bundles or donations can decrease return rates and increase donations. Jay applies these concepts by offering surprise benefits to new members, such as a 30-minute one-on-one call or a handwritten thank-you note. These surprise benefits enhance the sense of reciprocity and drive customer engagement and loyalty.
Creating Exclusivity to Boost Perceived Value
Creating exclusivity can boost perceived value and stimulate reciprocity. Jay limits the number of members in his community to 200, creating a sense of exclusivity and making the membership more valuable. This deliberate restriction not only ensures he can maintain personal connections with members but also fosters reciprocity among the community. Other members step up to assist and support new members, relieving the burden from Jay. By modeling desired behaviors and actively engaging with the community, Jay encourages reciprocity and cultivates a positive and active culture. This principle has been observed in successful loyalty programs where customers feel rewarded for their loyalty and develop a stronger bond with the brand.
Today’s guest, Jay Clouse, used one simple nudge to grow a $200,000 side hustle. This same nudge helped launch some of the world’s largest businesses, grew sales for a seltzer company, and has boosted charitable donations across the globe. Find out what it is in today’s episode of Nudge.