Lessons

Lesson Info

Increasing Customer Value With Reciprocity

Howdy chatbot fans and welcome back in this lecture, we're gonna continue talking about psychological principles of persuasion in effective chat bot design. We spoke about commitment and consistency and right now we're gonna talk about reciprocity. Um, and basically the reciprocity rule states that we should try to repay in kind what someone else did for us, another favor that was provided to us. And this is again a very powerful drive in the human being and it's something which has been pervasive in all cultures. Sociologist Alvin Goldner reports that no human society in the world does not subscribe to the rule of reciprocity and that's something which is worth noting because if we could get our customers and our prospects in our leads to feel a sense of reciprocity that we've done something for them, they are much more likely to do something for us. The desire to reciprocate is triggered even when the original favor was uninvited and that's huge because you might think or one might h...

ave assumed that if I ask you for a favor and you, if I say can you lend me your hammer and you lend me your hammer, then I will want to reciprocate that when you need something from me. But all the research and all the stuff we don't need to go through all the research and studies in detail. But all the research and studies have shown that even if I offer you something that you did not ask for, you will feel a sense of indebtedness and want to repay that favor. Another interesting rule to note is that we will often give back more than we received initially in the name of reciprocity. It's not even about like, oh you gave me this favor and this was worth seven points. So I want to return a seven point favor. You see this all the time and it works really well that even a small favor could invite much larger repayments and much larger reciprocal actions. Another important concept to realize as part of reciprocity is what we call reciprocal concessions. This is incredibly powerful And if this is the rejection than retreat concept and we all are familiar with this when kids will ask their mom, can I have Um, you know, can you buy me a car for my 18th birthday? No. Well could you buy me a new drum set? No. Well could you take me and my friends to six flags for the day? Okay. Sure. Right. And kids are innately good at this. They understand this. But the reason why this works so well is because of the reciprocity principle. It's not just I'm getting agitated by so many requests. This has been repeated in hundreds of studies and it is undoubtedly one of the strongest and most reliable principles of persuasion that there is. When you ask me, let's say you, you asked me for a favor that's too large and I reject that favor in a subtle psychological way that's perceived as you doing me a favor. Okay. Think about that you've asked me for something and I said no. And you said, okay, I'm not gonna bother you about it. Of course it's within your right and it's within my right. But still the fact that you've conceded right in a way makes me feel indebted to agree and to also concede so we're equal right? I've rejected something which is, in a way, a concession that you've made. I am now much more likely. I am more primed to make a concession for you. So now when you when you ask me a smaller offer, which is the offer you intended to ask me and intended for me to accept all along, I am much more likely to accept the offer. Now after I have rejected a previous offer of yours. And this works. It's not just conjecture. This is very, very powerful stuff. Reciprocal concessions works so well because it also piggybacks and taps into another psychological principle called perceptual contrast now that you've anchored a higher, more expensive offer or more difficult favor or more complicated task in the conversation. Not only did I reject that and you've made a concession to me and I'm now more likely to make a concession to you, but you've anchored something much more um over the top expensive high level then which which now makes the second offer look much smaller. In contrast if you're familiar with the anchoring principal. Perceptual contrast. It's all the same thing is something which is very powerful and it works really well and you could use that, I'm gonna show you and you could use that to your advantage in boat design. Another great advantage to reciprocal concessions is that when you use them in your chat bots, you're gonna make your customers feel more satisfied with their purchase or with engaging with your brand in general, a little slight typo there, but it's okay, that's another enormously powerful asset you have working in your favor. So not only do you tap into perceptual contrast by oi declined a bigger offer and now this offer looks much more reasonable, but also if I feel like I've gotten a good deal right if I have declined your expensive offer and then I get a better deal you offer me something which is more in line, I feel more satisfied. I have a more pleasant experience and all these things work in your favor. But at the core of it is a person's innate need to repay. And this could even be the case with a bot. We have seen this work, it doesn't have to be a real person, you're talking to face to face. If I feel like I've gotten something of value or if I feel that you've made a concession for me, I've rejected, I'm much more likely to accept moving forward. So let's talk about reciprocity in action in your chatbots okay. I'm gonna show you you're looking at a screenshot here, but I'm gonna actually show you in this video this chat bots in action. Um so just a first, a few bullet points for you to start remembering and start thinking about when it comes to understanding and building reciprocity into your bots, Offer something more expensive, get rejected, then offer something more affordable. That's the typical reciprocal concession in action. It works wonders I've been doing this with box for a while now and it really works. Another idea offer a coupon for 5% and then tell the user that you'll go ask your supervisor for an additional coupon even though you're not supposed to do that now, I'm not the moral expert here. The ethical expert here. I like pushing the boundaries of bots and making them sound like people and sound like humans. So don't call the the ethics the ethics police on me. Okay, I'm not telling you to do this, I'm just telling you that it works. Um So you could you could create the perception of you doing a favor for a customer or a user and that creates a more that creates a desire and this is not obviously these are not like overt psychological things playing out, these are subtle things that have marginal impact on conversion rate. Um but they do make an impact. So if you if you do something nice and you were gonna talk about likability in a couple of lectures from now. Um and you sort of create the context of a favor, even if the person knows that it's a bot. These are things that will work to increase conversion rates, increase engagement rates, you could through your chat bot, you could give users valuable insider secrets or valuable pieces of content or tips, let's say things that might have typically been gated content on your website, where a person has to give their email, phone number, company name, other types of information and tell the customer through the chatbot that listen, I'm gonna give you this information even though most other people have to sign up and give away a lot of personal information to get access to these tips. Right again, you're currying favor, you're doing something nice, you're showing them that you're going the extra step and that's not just about being nice, what is happening is reciprocity. The user on the other end of the chat feels now more inclined to comply with whatever is coming next. When you actually try selling them on something. Okay, these are core principles of salesmanship and and make an enormous impact. Um, on the same token, you could offer links to free gated content on your website before promoting any specific products or services. This is the same concept why e books and case studies works so well because when a person receives something of value and I want to make a side point, a lot of companies throw up pathetic e books and pathetic case studies that that are not any better than a blog post or their outsourced by somebody who doesn't understand your business, know that stuff doesn't work in order for reciprocity to be triggered, you actually have to give them something of value. The favor has to be real and felt and authentic. So this could work when your company produces and you take the time to produce good content when you produce content that's long and it's thorough and it's valuable and it's not just something you could find in three seconds through a google search elsewhere. Right? It's original when you offer them that sort of content for free, it creates a sense of, wow, I've gotten value from this brand, I'd like to reciprocate that and buy from them and they're much more likely to buy from you after they receive something for free because they want to repay that debt. People want to repay any sort of debt that they're under. Its very strong psychological principle. If you're trying to promote a webinar, right, ask users if they're this is an interesting idea and like I've actually never tried this, I was just when I was preparing the slide, I just sort of thought of it and I would like to try it and if I do try it, I will share the results with you. Um you could ask users if they're interested in joining the two hour version and when they did, when they when and when you're denied which which you almost certainly will be because most seminars, Most seminars are not that long, you then ask the user well, would you be willing to join our shorter version, which is just 30 minutes that has all the essential information And less fluff or whatever you do when you say it. And I would test those two, I would test two different funnels, one just promoting the 30 minute seminar and one doing the rejection, then retreat concept of reciprocity and I'd be willing to bet I would literally put my own money that this will work better. You will get more registrants for the 30 minute seminar than you would otherwise because it's reciprocity in action. Now let's go see this bot in action. This is gonna be your first time getting a glimpse of the inside of mobile monkey unless you've signed up for it already, don't get overwhelmed, I'm not teaching anybody how to use mobile monkey right now, we're not going through anything. Step by step, we're just going to um see the bot in action and we're just gonna test the bot, that's all it is. Okay, so let's take a look here. So here we are in the back end of mobile monkey, don't be concerned if this looks overwhelming or confusing. We're gonna do everything, we're gonna go over everything in detail later on, but let me just quickly test this reciprocity bot, this test bot and we're gonna test this page opening Messenger and let's see what happens here. Okay now we can do this on a mobile phone but this is just the desktop version of Messenger. Most of this is going to be happening in a mobile phone on a mobile device and I'm going to show you recordings and obviously screenshots of mobile devices later on. So the bot asks me hi there Isaac may I ask what you are in the market for? And it gives me three options down here, sectional sofas and recliners. So I'm going to tell the bot that I am in the market for a sectional and let's see what happens. Great take a look at this product. It's our top of the line sectional and it's selling for $3499 on our website today. And it shows me a nice image of the sectional. What do you think about that sectional for 34 99? It's an expensive sectional and I know it's expensive and I know it's out of the budget for my leads because I've targeted my leads with in very specific ways and I know that most people are the vast majority of people are not going to buy the sectional for 34 99. So I have two options here and I could natural type and there's different ways to build these bots. But for the simplicity of it, these are gonna be done through options. Being sent to the person to the user. So I have the tear emoji out of my budget. Send me a link. And what's cool is we could customize and we would customize this chat bot based on what the person selected originally. Whether it be sectional sofas, recliners. So I'm gonna write, it's out of my budget. Let's see what happens. It's typing. And that's that's again that's programmed through chat through the monkey to look like it's typing. So it's pretty cool. So I understand Isaac that sectional is way out of my budget too. I'm going to get a much lower sales commission. But what do you think about this section for just $639. It's really good quality. And it's one of our bestsellers and it's on sale from 9 99 Clap emoji and I send a picture. What do you think? I mean this is this is crazy stuff, it's all happening and this could happen. Thousands and thousands of simultaneous thousands of simultaneous chat messages with customers can happen at once and each person based on what they select, remember the whole, remember the um analogy of the phone tree that you choose your own adventure. Everyone can go down different funnels. We can build this out as complex as possible. Um So what do you think? So I have a heart emoji. I like it don't love it. So I'm gonna click, I like it and the chatbot responds, Woo hoo. I'm happy you like this one and it's on a great sale today. Below is a button that will bring you to that sectional online and I've also included an extra 10% off for you. Um and if I click that button, it brings you right to that product page and the person is much more likely to check out why is because we've used reciprocal concessions, right? We got rejected. We offered them a an expensive I mean, I want it's important to break down what happened here, right? We offered them an expensive sectional and it was clear that I wanted them to buy the expensive one because important, I talked about my sales commission. Remember that in the next follow up message, I talked about sales commission, but the customer rejected and now they're primed to Be much more likely to buy something for $600 for a few reasons. One is there is the conceptual contrast right there. Now, $600 looks cheaper than it would have looked to them If we just started off with a $600 sectional, right? That's very important to realize the conceptual contrast. They think they're getting a good deal. I'm offering them a discount. It looks now so much cheaper than their higher end sectional and it looks like I'm getting a great deal because it looks almost as nice. So you have the concept of contrast, perceptual contrast, You have that concept of satisfaction, that I'm getting a good deal and I'm willing to do you a favor because you've made a concession when I rejected your offer for the expensive sofa for the expensive sectional, I'm now more psychologically likely to accept an offer and make a concession to you to accept the offer for a cheaper sofa. Now, of course, this stuff doesn't work like science. These are all things that were combined to slightly increased conversion rate. But over time. And when you employ much of these tactics and when you implement your box in these ways, you're gonna start seeing an incredible, incredible results. And you're gonna see much, much better results than your competitors are seeing because your understanding these psychological principles. So that was an extremely simplistic bot in action. We're going to see way more exciting bots in action. Um, and building much more complicated structures and, and funnels and different pages and different types of bots. And it's gonna be really exciting. In the next lecture, we're gonna talk about the next exciting psychological principle called social proof and tribal identity. Also very, very powerful. And we'll show you how to use those in your box as well. I hope this was exciting. And I look forward to seeing you guys very soon in the very next lecture