Product viral loops, A/B test variants, and email marketing 80/20.

This newsletter curates growth insights from Demand Curve's community. It keeps you up-to-date on growth tactics.

This week we're covering product viral loops, A/B test variants, and email marketing 80/20.

Lean into your product's viral loop to get more referrals

Insight from Kevin Yun from GrowSurf.

The most famous referral success stories are outliers.

The well-known referral programs that grew brands like Airbnb and Dropbox are highly unlikely to work for your startup.

In fact, instead of trying to "build a successful referral program," you should be focused on finding your company's viral loop.

Examples:

If you run an ecom pet store, your viral loop might be getting dog owners to post pictures of their dogs on Instagram (with you tagged).
If you're in EdTech, your viral loop might be a bustling community where eager students get free course credits when they invite their classmates.
If you're a SaaS founder, your viral loop might be a freemium tier where your customers include your badge in their footer.

There are no one-size-fits-all solutions. You have to dig into what your product offers and align that with an incentive that increases your exposure.

How to figure out why variants in your A/B tests win

Insight from Demand Curve.

Most marketers skip a key step in the growth process while running A/B tests.

Everyone looks at quantitative data. That's easy. Your analytics platform will show you which A/B variant had a better conversion rate.

But few dig in to figure out why a given variant won.

Two approaches to determining the why:

Use heatmaps: Tools like Hotjar will help you figure out why certain variants won. Were users distracted by a suboptimal CTA in one variant? Maybe users bounced before scrolling past the top half of your landing page?
Survey customers who were impacted by the test. You can use tools like SurveyMonkey to set up automated survey emails that trigger post-purchase. Ask questions that help you determine what aspect of your test variable got them to purchase.

Figuring out why each variant wins will inform your next tests: It's what keeps your growth flywheel spinning.

Our 80/20 on email marketing

Insights from Demand Curve's Twitter.

We wrote a thread explaining email marketing. Here are a few of the actionable insights that you can apply to your email strategy:

Why email?

Email is where the most dollars remain uncaptured.
Email is an owned channel. Instead of relying on social media algorithms to surface your content, you're directly in subscribers’ inboxes.

Email is high ROI and you have direct access to your audience.

How to grow your list:

You don't need a huge list. You want a growing list of people who are in the mindset to actually trust you and buy from you.

Create a lead gen asset that excites people—quickly. E.g. really high-quality content.
Use popups: Love 'em or hate 'em, they work. Just make sure they provide value to your audience.
Quality of subs > volume.

Here are the two most important things to get right when crafting emails:

Subject line.
Body copy.

The 80/20 on each:

Subject line:

If people don't open, nothing else matters. Make your subject line:

Self-evident: You don't want people guessing why you’re bugging them.
Segmented: Have a subject that's hyper-relevant to each sub-audience.
Concise: 50 characters or less—or it'll be cut off for mobile users and they might not open it.

Body copy:

The goal of body copy is to drive people to your CTA:

Fulfill the expectation you set in your subject line.
Promise more value that is only delivered through your CTA.
Be aggressively concise—don’t waste subscribers’ time.

Use flows—automated emails triggered by subscriber actions.

Two critical flows:

Nurture: Subs are more likely to take action when they first sign up. Move quick.
Post-purchase: Over 50% of customers who make 2 purchases make a 3rd. Optimize for that 2nd purchase.

Choose the right software for your business type:

SaaS, apps, service businesses: Customer IO, Iterable.
Ecom startups: Klaviyo, Drip.
Creators: ConvertKit.

See the full thread on Twitter here.

News and links

Newsletter our team is loving: The Indie Hackers Newsletter (60k+ subscribers). It provides the most interesting early-stage startup news for founders—not consumers. That means their tech and market updates come with really good actionable insights for growing your business. Get the next one here.

Who to follow on Twitter: Meet the team behind our content.

Julian Shapiro: Founder of Demand Curve and Bell Curve. Tweets about writing and clear thinking.
Nick Costelloe: Runs our content (like our playbooks and the Growth Tactics Twitter). Tweets about growth, writing, and adventure.
Matt Maiale: Heads our community and runs growth experiments. Tweets about growth marketing, running, and philosophy.
Colin Belyea: Senior Growth Strategist for our agency, Bell Curve. Tweets about growth, startups, and real estate.