The Growth Vault
Each week we spend hours researching the best startup growth tactics.
We share the insights in our newsletter with 90,000 founders and marketers. Here's all of them.
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.
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Give new customers a quick onboarding win
Insight from Samuel Hulick and Intercom.
Most SaaS apps lose 95% of new users within 90 days. A majority of these users drop off before they finish onboarding.
When customers fully onboard, they're more likely to stick around and pay for your product. One way to encourage them to complete onboarding? Give them a quick win.
Example: After logging in to Quora for the first time, a new user sees a checklist called “Set Up Your Account.” The first step, “Visit your feed,” is already checked. The user has accomplished something just by signing up.
People are more motivated to keep going if they think they’ve already accomplished something. Early in the onboarding process, keep motivation high with quick wins and reminders of what the ultimate big win will be.
- Keep the “job-to-be-done”—what users will get out of the onboarding process—front of mind. Airbnb’s host signup page shows you what your monthly earnings could be if you complete the steps to rent out your home.
- In your welcome email, don’t waste precious space on a “thanks for signing up.” Remind them of how your product will benefit them once they’re fully onboarded.
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Use product customization to improve retention
Insights from Demand Curve.
Tip from behavioral psychology: 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 1) convert at a higher rate, or 2) pay more for it.
Two examples of customization in practice:
Ecommerce: Converse allows shoppers to choose the color, shape, and star placement of their famous All-Stars.
SaaS: Slack lets users customize their setup with bots and integrations. Customization in SaaS doubles as a retention driver — switching costs rise as users integrate other tools.
Here's the 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.
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Decrease involuntary churn to boost retention
Insight from Demand Curve.
Failed payments can be a quiet cause of unnecessary churn.
Even very successful startups like Segment have said that non-payment can account for up to 50% of total churn in a given week.
If you sell subscriptions, use this process to reduce churn. (This can be automated.)
- When a card fails, retry the card-on-file again before emailing your customer. Over 20% of payments are resolved by retrying the card before sending emails.
- When you do need to reach customers, email them a mobile-friendly link without a password so they can easily give you their new card details.
- If customers don't engage with your email, send an SMS.
Your customer acquisition efforts aren't optimized without a heavy focus on retention. Limit failed payments to fix a leaky bucket.
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Test pre-targeting for better cold email conversion
Insights from Demand Curve.
Cold email works better when your targets already know who you are.
So unless your startup is a household name, you might consider pre-targeting: Run ads to a specific list of email addresses before reaching out to them.
Pre-targeting can boost open rates and response rates because it makes your company feel more known—especially in industries with large, older companies (like government, manufacturing, supply chain, and real estate).
How to run a pre-targeting test:
- Pull a list of at least 1000 emails. Call this group A.
- Then pull another list of 1000 emails. Group B.
- Run ads on LinkedIn and Facebook and directly upload the group A list (you’ll want to use “Direct Audiences”). Then email group A.
- Email Group B without running ads.
See which group responds and converts better.
Final tip: When optimizing your pre-targeting campaigns, consider choosing the Awareness objective on your ad platform. You just need your prospects to see your ads—not click. It’s cheaper because fewer advertisers bid on awareness ads.
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How to actually design mobile-first emails
Insights from Email Mastery.
More people read emails on mobile as opposed to desktop.
If you're not truly creating mobile-first emails, your campaigns aren't fully optimized.
The good news is that it's easy for email clients & ISPs to automatically adapt mobile-first designs to desktop whereas the opposite is not true. So if you optimize for mobile, your design looks sharp regardless of the device.
Here's how you create great mobile-first emails:
1. Write short subject lines to prevent them from getting cut off on mobile.
2. Keep the design clean to make it easy for readers to engage the content:
- Narrower design with plenty of negative space.
- Bigger, legible fonts.
- Larger, easy-to-click CTAs.
3. Use small files only. Many mobile devices are running weak processors. Prevent people from bouncing due to slow load times by compressing your image files.
4. Send a test and read it on your own phone before scheduling.
There's often a disconnect—marketers use desktop platforms to create and send emails. It's easy to overlook mobile when you're working from a computer.
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Build social proof—even if it’s only lukewarm
Insight from Benjamin Ligier of Convertize.
Some social proof is better than none.
According to a major ecommerce study, a seller with negative reviews and poor photos is more likely to outperform a seller that has zero information.
Chew on that for a second.
Zero information leads to distrust, while negative information facilitates a neutral level of trust.
This finding illustrates the importance of “uncertainty reduction.” That is, people require information to feel more trust about something.
That’s not to say you should actively seek out bad reviews. Rather, understand that having no reputation or photos whatsoever may preclude sales.
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Describe WHAT users get when they click your CTAs
Insight from Demand Curve.
Most call to action (CTA) buttons aren't compelling enough. Here's how you can improve yours:
Successful startups describe WHAT you get by signing up:
- Download the ebook —> Read the book for free
- Get started —> Create your meal plan
- Sign up now —> Watch now (Start your 30-day trial)
Always remind people what's in it for them: Simple yet thoughtful changes to your CTAs could increase clicks and conversions.
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Reduce decisions per page to increase conversion
Insight from Jordan Bowman.
Decision fatigue might be hurting your conversion.
If people have to make too many decisions when they get to your landing page, they'll tire and bounce.
So what can you do to avoid it?
Decrease the amount of decisions per page that people have to make.
- Only include the most critical links in your nav bar: Don’t distract people from the action you want them to take.
- Limit the types of CTAs you use. You can take this a step further by using Unbounce or Optimize to show a dynamic CTA: a single CTA that is most likely to get a click given the particular person.
- Use plenty of negative space to prevent people from having to choose between focusing on creative or copy.
Remove all unnecessary decisions so people quickly get what they're looking for from your site. They'll be more likely to buy from you.
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Segment your email flows by subscribe intent
Insight from Mike Arsenault of Rejoiner.
New subscribers come into your email list in a variety of ways:
- Some sign up for your newsletter.
- Others sign up after reading your content.
- Customers opt-in at checkout.
Yet many startups send each new subscriber the same welcome series even though we know what drove the sign up in the first place.
Increase your email performance by segmenting your flows:
- When new subscribers sign up for your newsletter, include a sample of the newsletter in your welcome flow—get new subscribers acquainted with your newsletter while it's fresh in their minds. They'll be more likely to notice and open it when you send your next issue.
- When people sign up through your blog content, tailor your welcome flow to send them more relevant blog posts. Get specific: If they signed up while reading a keto blog post, send them more keto content.
- When customers opt-in after a purchase, create a flow that shows them how to use your product. Optimize for a second purchase: 53% of customers who’ve made two purchases make a third purchase.
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Join 90,000 founders and marketers getting actionable, no-BS startup growth marketing advice each week.
Delay your welcome email to improve performance
Insights from Demand Curve.
Most marketers set up a welcome email automation that greets new customers immediately after signup.
But people reflexively discard them: more spam.
Welcome emails are a critical opportunity to move leads down your funnel.
Here's how you get people to open and read your welcome emails:
- Delay your welcome email by 15 to 45 minutes. The time delay removes the subscriber's mental connection between their signup and your email. This bypasses the reflex to ignore.
- Set the email sender name to someone within your company, rather than your business name. An email from Julian Shapiro is more likely to get opened and read than an email from Demand Curve. It's more human.
- Write a unique subject line. Don't simply write "Thanks for joining!" Instead, write something that will people want to click. Allbirds writes "Welcome to the Flock." Grammarly includes "You + Grammarly = Ready for Action."
You should optimize every part of your funnel, and welcome emails are no exception.
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How to write your email subject line to maximize open rate
Insights from Demand Curve.
Here's a friendly reminder: Slight tweaks to your email subject line can lead to significant swings in open rate.
To get the highest ROI out of your email campaigns, try this:
- Create multiple subject lines and A/B test them on ~10% of your list. Then set up your email software to send the iteration that receives the highest open rate to the rest of your list. We've found that small iterations on your initial subject line work best because they require less time to write.
- Pique curiosity. Subject lines are like cliffhangers. Provide an inkling of the content within without revealing too much: Intrigue readers to open to satisfy their curiosity. Just make sure your subject line does relate to your content—otherwise you'll lose trust.
Reminder: Past email quality has the greatest impact on your open rate. Quality content leads to high open rates on future emails. Subject lines are just the icing on the cake.
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