Content creator Steph Smith used a clever tiered pricing tactic for her ebook launch:

She raised prices as more copies sold.

Starting with a price of $10, she raised the price $5 for every 30 books sold.

• $15 after the first 30 purchases
• $20 after 60, and so on
• She eventually allowed more purchases at each tier between price raises

To date, she’s sold 3,400 copies for more than $130k.

This tactic works because it leverages two principles of buyer psychology:

• Urgency: People are motivated to buy quickly to avoid paying after a price increase.
• Social proof: The book’s rising price signals the number of customers who have bought it, proving its value.

Of course, not all companies can test this strategy. But this could work well for companies selling courses, agencies selling expertise in the form of coaching sessions, or other companies that sell digital products.

If you use this strategy, your price shouldn’t increase indefinitely—it’ll eventually reach a peak where the cost outweighs customers’ interest. Find the point just before sales taper off, then use it as the standard price.

Here’s what a good welcome email can do:

• Introduce/build your brand.
• Set expectations.
• Ask for replies and engage in dialogue.

Replies send a positive signal to Google, so they’ll deliver more of your emails to inboxes instead of spam folders.

See the full-resolution image on Twitter here.

If people can’t FEEL the problem your startup solves, they won’t buy.

Here’s how Muzzle uses their homepage to visualize the problem:

• Shows embarrassing notifications
• Makes them outrageously vulgar
• Points out how Muzzle puts an end to unwanted notifications during Zoom calls

See the full resolution image on Twitter here.

Startups that stand out are those that get creative.

Here's an example:

Brooklinen "leaked" a time-bound discount and had one of their best days of the year.

Winning startups experiment not only with copy and creative, but also with their framing.

See the full resolution image on Twitter here.

Keys to a great landing page:

• Put your key value prop front and center.
• Handle the most obvious objection upfront.
• Use negative space to direct people’s eyes to your header.

When you create a compelling, frictionless landing page, more people click and convert.

See the full resolution image on Twitter here.

One way to poach future customers from competitors:

• Create landing pages that compare you against them.
• Address customers' biggest objections.
• Show your product in action.

Then, when people search for you versus your competitors, you'll show up on the Google results page.

See the full resolution image on Twitter here.

Most growth marketers are not great. They never learned the frameworks underlying growth. Instead, they haphazardly throw ideas at the wall without process or iteration.

So, hire slowly—and with a skeptical eye.

We're usually looking for three qualities in a candidate:

1. Proactiveness when crafting experiments and scaling them up.
2. Process for consistently generating growth ideas.
3. Reflectiveness and data literacy when they assess what their growth successes and failures have taught them.

I use a three-step project to assess these qualities. It looks something like this, but it varies significantly per growth role, and this is not one-size-fits-all:

1. The candidate ideates and ranks customer acquisition strategies. This reveals their ability to identify high-leverage opportunities and see the big picture.
2. They walk through their methodology for optimizing conversion at every key step in our product journey. This reveals their process-driven approach to spotting bottlenecks and generating hypotheses.
3. They create sample content for the growth discipline they're being hired for, such as running ads or email marketing. This showcases their tactical competency.
   

Collectively, these projects answer three screening questions:

1. Are they proactive?

Growth marketers must be proactive and resourceful. Resourceful growth marketers are those who never stop generating ideas, running experiments, and iterating. Never hire a "set-it-and-forget-it" marketer.

For example, when Facebook releases a new ad format, a growth marketer should spend ad dollars to uncover whether there's new, low-hanging fruit to pick.

When customers use a product in unexpected ways, a growth marketer digs in, talks to customers, and uncovers how these learnings can improve website, ad, and email messaging.

2. Do they have a process for generating and prioritizing ideas?

Does their ideation process result in multiple worthwhile projects? We're assessing their flexible, cross-disciplinary process more so than their output. A great process adaptably generates quality ideas forever.

Because every company's resources are limited and growth can be time-consuming and costly, I also look for a candidate who understands how to prioritize projects and efficiently allocate focus.

3. Do they know what a job well done looks like?

Do they know what mastery looks like in the role they're interviewing for?

If they're running ads, for example, can they identify compelling value propositions, write enticing ad copy, and target audiences that fit the product?

Finding growth marketers:

We can match you with a vetted partner here.

Interesting:

Barack Obama created a playlist to go along with his new book.

His playlist tweet generated ~ 2x the retweets as his official book launch tweet.

Why? Relatability.

When people notice that you have similar taste, they relate. It's on-brand, and they retweet.

See the full resolution image on Twitter here.

Your "above the fold" (ATF) section is the part of your site that's immediately visible before scrolling. It's your first impression. And it's your asset that determines whether people stick around and see what you have to offer, or bounce.

We wrote a playbook on creating a high-converting ATF section. You'll walk away understanding exactly what you can do to level up your landing page. Scroll to the bottom of this newsletter to start reading.

We wrote a thread highlighting how top startup's adjusted their landing pages due to COVID.

Here's an example from Airbnb:

Airbnb's business was upended in April. But by June, rural bookings were growing.

Key site changes during that time:

• Action prompt: "Book unique places" —> "Go Near [places]"
• This handles the objection of "It's not safe to be where everyone else is."

See the full thread on Twitter here.

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?

1. Email is where the most dollars remain uncaptured.
2. 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:

1. Subject line.
2. 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:

1. Nurture: Subs are more likely to take action when they first sign up. Move quick.
2. 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.

People place a higher value on things that they have a hand in creating. If you allow people to customize your product, they'll either convert at a higher rate, or pay more for it.

Two examples of customization:

Ecommerce: Converse allows shoppers to choose the color, shape, and star placement of their famous All-Star shoes.

SaaS: Slack lets users customize their setup with bots and integrations. Customization in SaaS also improves rentention—switching costs rise as users integrate other tools.

A lesser-known benefit: Customization generates valuable data. Take Converse. If people self-select one particular color or style more than the rest, Converse can use that data to create a core product line.

Check out the other 8 copy improvements on Twitter here. And if you haven't already, give us a follow @GrowthTactics for threads like this every week.

Check out the rest of the fixes on Twitter here. And if you haven't already, give us a follow @GrowthTactics for threads like this every week.

Why you should consider testing cold email as a growth channel

No one likes getting cold emails.

But when it’s done correctly, it works. Some businesses single-handedly grow through cold email.

Take a look at this email (we wrote it as an example):

This is cold email perfection:

• Clearly indicate why you’re reaching out and how you’ll add value—and be specific: “Customer IO will increase revenue by ~12%.”
• Proactively handle key objections.
• Add a personal touch up front, which acts as the hook for the rest of the note.
• End with one clear CTA. And since it’s the first email, ask for interest instead of time in your CTA. “Do you think we’re a fit?” works better than “Let’s book a call” at first.
• Include “persona-matching”—the presumed sender of the email isn’t a salesperson. It’s the employee who most closely matches the role of the intended recipient. This builds trust and can lead to better cold email ROI.

We’ll teach you how to send effective cold email campaigns like these.

What makes email so great?

• Targeting: Emails let you target exactly the people you want, and when done right, they’re so personalized that people can’t help but respond. You can’t get that with ads. Why? Ads cast a wider net, meaning you’ll always end up hitting people who will never buy from you. A 2% CTR would be impressive with ads. For email? You can see CTRs as high as 50% on strong campaigns.
• Access: Most decision makers still manage their own email inboxes. This is a massive opportunity. So long as you have the correct email address, your message lands in front of decision makers as they’re actively making business decisions.
• Low capital investment: All you need is an email account, and potentially software to help you automate your process. So it makes sense to start with this channel if it has potential for you. That way you’re not burning cash before you’re generating revenue from clients.

Who should use cold outreach

Most early-stage startups should test cold outreach, but it’s most profitable for B2B companies.

Why?

Cold outreach isn’t “free”—that’s a common misconception. Due to the labor involved in outreach and sales, CACs can be relatively high. In many cases, only high margin products can support cold outreach as a growth channel.

B2B companies typically have a higher margin than consumer companies.

Think of it like this:

Say you run an online shoe company where you sell $100 pairs of shoes that cost you $25 to make. Cold outreach might not be worth your time: You’ll likely spend hours sending emails, setting up calls, and managing the funnel. Labor hours would exceed your $75 margin.

But for a B2B SaaS business selling $1,000/month contracts? 5 labor hours to close a deal might result in thousands of dollars of profit.

That doesn’t mean you should rule out cold outreach if you’re not at a B2B company with high margins.

You can still make cold outreach work. Here’s a framework for identifying companies that cold outreach could work for:

• High margin products that can afford the labor of emailing and closing.
• Products that are expensive and that people aren’t actively searching for (if people are searching for your product, search ads and content might be more effective).
• Most early-stage startups that need a low capital investment way to sell and generate revenue so that they can afford to test other channels—like running ads or hiring a content writer.

Specific examples of companies that should test cold outreach:

• Agencies who charge $2000+/month per client and collect their first payment after the first month.
• Most B2B SaaS companies.
• Companies selling expensive physical goods (like equipment or medical devices).
• Edtech companies that sell high-margin digital products.

If you’re deciding whether or not you should test cold outreach, here’s an actionable framework. Test cold outreach if you meet one or both of the following criteria:

1. Your profit margins are greater than $500 per closed deal AND your payback period is less than 2 months.
2. You’re at an early-stage startup that sells products over $100 and you can afford to sell at low margins to get off the ground—do things that don’t scale until you can afford to test channels that scale.

Creating a cold email strategy

Here’s what a cold outreach pipeline could look like:

• Generate a prospect list.
• Invite the qualified prospects (via email) to an online product demo, sales call, or webinar.
• Address their objections and entice them to purchase.
• Negotiate and close their contract.

We’ll show you how to test cold outreach as a growth channel. That means standardizing your approach and running tests to see if you can acquire customers profitably through cold outreach.

To get the rest of our cold email module, you can buy the Growth Program here. Here's what else you'll be able to do with the program:

• Design your growth strategy: Your dedicated growth advisor will help you focus on what matters, so you can ignore what doesn't.
• Build your funnel: Redesign your landing pages, marketing emails, onboarding flow, and referral programs to significantly increase conversion.
• Launch and scale acquisition channels: Go deep on the inner-workings of every major customer acquisition channel—ads, content, referrals, and everything else. See our examples of what good work looks like.

If you're not ready to buy, you can get a free course of the sample here.

Try marshmallow testing your referral program. 

The marshmallow test: Give a kid a small reward now or two small rewards later. See which they choose.

The team at IntelyCare—a two-sided marketplace that matches nursing professionals with open shifts at nursing homes—tried their own version of the marshmallow test.

They tested two referral program offerings:

• An extra $1/hour next shift when a referral starts an application (small reward now)
• $100 when a referral completes their first shift (larger reward later)

So what happened?

The $100 offer increased referrals by 65% compared to the control group.

Not bad. But not even close to the winner.

The $1/hour offer increased referrals by 81%. And the CAC was less than half that of the $100 group: $110 compared to $257.

The rate at which referred people started working with IntelyCare was about the same for both groups. 

Takeaway: It’s not the size of the reward but the speed it arrives that really motivates people.

Of course, that might not be the case at your business. Maybe your customers prefer waiting for a bigger reward. But if your referral program has a longer reward cycle, try testing a variation with a quicker, smaller payout. You might be surprised by the results—both referral rates and CAC.

Good-Better-Best (GBB) pricing can help you gain more customers, more revenue—or both.

It's the concept of utilizing product features in your offers to target different customers.

For example:

• Gas stations sell regular (Good), plus (Better), and super (Best)
• American Express offers green, gold, platinum, and black cards
• Cable TV providers market basic, extended, and premium packages

Most companies start with the Best option (obvious potential revenue growth) when they should really begin by figuring out their fence attributes.

A "fence" attribute acts as a barrier to prevent customers from crossing over to a cheaper option.

HBO Max, for example, uses a 2-tiered variation of GBB. Their fence is ads:

Even though the ad-supported plan (Good offering) is five dollars cheaper, ads are such as strong barrier that 90% of subscribers choose the Ad-Free plan (Best offering).

To implement good offers, you need effective fences. Here are a few ways to identify yours and brainstorm pricing:

• Identify features with wide and deep appeal
• Use no more than four attributes to differ between Good-Better and Better-Best
• Maintain a consistent progression of benefits from Good to Better to Best
• Good pricing shouldn’t be more than 25% below Better
• Best pricing shouldn't exceed Better by more than 50%

For context, many companies expect:

• 10 - 20% of revenue from Good
• 25 - 50% from Better
• 30 - 60% from Best

Note: The actual numbers will depend on the number of attributes, degree of differentiation, and the price spread.

Here’s a clever retention strategy from the DTC olive oil brand, Graza.

Include a QR code on your product label for restocking:

The QR code takes users to Graza’s product pages where they can checkout in a few clicks.

What makes this strategy so effective?

When we’re running low on olive oil (or any everyday item we rely on), we usually add it to our shopping list. In that moment, we have high purchase intent. We may even be extra motivated to buy because we want to avoid the pain of running out or trekking to the store.

The QR code capitalizes on this intent by making it ridiculously easy to restock.

This tactic works for consumables—sunscreen, detergent, toothpaste, makeup, shaving cream, beverages, and so on.

Adding a QR code on your package can help improve retention so long as your customer has their phone within reach.

Before Apple’s update, you could focus your ad efforts on targeted, bottom-funnel creative. Low-hanging fruit.

But these days, that doesn’t fly—ads should focus on educating. 

Given the update, marketers can’t pinpoint the funnel stage where prospects might see specific creative. To work around this, your creative needs to educate and sell—each piece should answer:

• What is the problem that you're solving?
• What is the brand and product?
• Why do I need this and how will the product improve my life?
• How can I trust you to be the best option?
• How do I get it right now?

This is why UGC does so well for customer acquisition—a satisfied customer naturally addresses all those questions above, and the content itself is social proof.

These ads efficiently build brand equity on the back of the performance media dollars.

Cadence does a fantastic job with this through their ad creative (also on a scrappy budget).

The best ads don't feel like ads at all, so make your ads come off friendly, helpful, aspirational, or educational.

For SaaS startups, surveys are critical.

They’re how you find out what customers actually want, instead of building products, growth strategies, and business models on assumptions and beliefs.

But in practice, we’ve found that running surveys are a lot like meditation—everyone talks about it, but few actually do it.

Those that do run surveys often make these repeat errors:

1. They don’t ask questions that get to the heart of customer decision making and product-market fit.
2. They don’t segment the results. They lump everyone together, for less-revealing findings.

Here’s how you can fix both.

Questions to ask

Use this survey template from PMF Survey to get started, recreating it in whatever survey platform you prefer, like Typeform.

Here are some possible questions—alter them based on what you’re trying to learn about your customers.

• How did you discover [X product/company]?
• How would you feel if you could no longer use X?
• What would you use as an alternative if X weren’t available?
• What’s the primary benefit you’ve experienced from X?
• Have you recommended X to anyone?
• What type of person do you think would benefit from X?
• How could we improve X to better meet customer needs?

Segments to break out

• Most active and loyal users
• Infrequent users
• People who signed up for your service or a trial but never used it

If you split out those three segments, you’re more likely to gain insights into why customers are active in your product. And why they churn.