Cookie Reciprocity Strategy
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A cookie sales business targeting car dealerships, leveraging the rule of reciprocity to help them close more sales.
The Rule of Reciprocity Strategy
- When you do something nice for someone (even small), they almost always do something nice back
- Often the return favor is disproportionately larger than what you gave
- People feel compelled to "be even" after receiving something
Business Concept
- Provide cookies to car dealerships to give out to customers when they come in
- Pitch to dealerships: "Have you heard of the rule of reciprocity? People are much more likely to buy when they're eating a delicious cookie and feel taken care of"
- Cost-benefit pitch: "This will cost you a dollar per cookie, but if you close even one more sale this year, that's a $35,000 return"
- Target businesses with money who are less price-sensitive about cookie costs
Strategic Benefits for Car Dealerships
- Creates a positive customer experience
- Makes customers feel taken care of
- Activates the psychological principle of reciprocity
- Can help close more sales for a minimal investment
Business Growth Strategy
- Focus on selling to "richer customers" who are less price sensitive
- Target local entrepreneurs who are making enough money that they don't care if it's 80ยข, $1, or $2 per cookie
- Sell to businesses where the owners "like the story, like you, and want to be supportive"
- Create contracts with businesses willing to pay more
41:42 - 44:38
Full video: 01:08:16SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.