Growth Newsletter #046

If you run a referral program, you inevitably have customers who are willing to give a referral but don't actually do it. That's called the referral gap.

It can be a chasm: one study found that 83% of customers were willing to give a referral, and only 29% did.

Here's how you can close the gap and turn more of your customers into an autonomous sales team:

• Use the channel that drives the most last-click revenue for your referral requests. If most of your last-click revenue comes from email, then send your referral request via email (don't try to get customers to share on Twitter). Last-click attribution signals the channel where your customers take decisive action—closing the referral gap requires turning inaction into action.
• Reduce friction by pre-writing any outreach messaging your customers will need. And avoid the sales copy. Write it as if you're prompting your best friend to check out a new product.
• Shorten the process to the bare minimum. In Gusto's program, customers share a referral link through social media or email within two clicks.
• Use heatmaps (like Hotjar) to see how customers engage with your referral program's landing page. Tweak messaging where they're getting stuck, focusing on clarity and program benefits. Give this page as much respect as your other pages.

Roughly 70% of ecommerce shoppers abandon cart. These are higher-intent shoppers who were one step away from becoming customers.

Nearly half of cart-abandoners cite additional or unexpected costs as the reason.

Try these tactics to convert more shoppers:

• Offer free shipping starting at a minimum dollar amount—or better yet, on all products. Customers expect free shipping now on most orders. A fast way to kill conversion is to add shipping fees to your checkout page.
• Shopify brands can set default free shipping (or free shipping by value, weight, products, or customers) in their admin settings.
• Bake extra fees (like shipping costs) into your product pricing. If you have to charge fees, include them on your product page, not your checkout page.
• Don't make account creation mandatory. Provide an option for guest checkout. Every step you take to reduce friction will likely increase conversion.
• Keep your checkout process simple and flexible. Offer one-click checkout (with a tool like Fast) and multiple payment options.

Let's face it. Instagram simply doesn't have the organic reach it had a few years back. The platform is generally saturated with content.

But you can increase your organic reach by focusing on building community.

To increase reach, aim to spend at least 30 minutes a day on community building:

• Follow 10 to 20 key hashtags for your industry. Regularly interact with the top posts for those hashtags. These posts are often surfaced on the Explore feed, so you have a chance to engage with new users and encourage them to follow your account.
• Reply to DMs and comments on your posts, and share user-generated content you're tagged or mentioned in (with permission).
• Glossier has a "Top 5" Story Highlight featuring five of the "best things" they were tagged in. This 1) gives those creators more exposure, 2) reinforces the popularity of the Glossier brand, and 3) tells the IG algo they're immersed in their community.
• Bonus: Stories are a viral feature. When you tag your customers in stories, some will share on their own stories—showcasing your brand to all of their followers.
• Turn on notifications for popular accounts in your space, such as creators with high engagement:follower ratios. Whenever they share new content, you'll know to jump into the conversation. You'll get in front of thousands of relevant users—for free.

Instagram builds features specifically for ecommerce brands. Lean into their core values (like community) to get more organic reach.

Deliverability is the percentage of emails that make it to inboxes (as opposed to spam folders or firewalls).

Think: You’ve done all the hard work of finding the right targets, getting their email addresses, and crafting emails to them. It’s inefficient if many of your emails don’t even make it to inboxes.

Here’s the 80/20 on improving your deliverability:

• Create a separate subdomain for sending cold emails. For example, if your usual email is jsmith@company.com, set up a separate subdomain and use jsmith@e.company.com to actually send emails from. This way, if anything goes wrong (rare), you haven’t impacted your main domain.
• You can also use a tool like Mailwarm to get positive engagements on your emails before you start sending at scale. What you’re looking for is "regular email traffic" and a responsible slope to higher volumes that won’t negatively impact your sender reputation.
• Avoid including too many images or too much HTML in your emails. One of the spam flags that you can avoid is the ratio of text to other content.
• Limit your links—especially to social networking sites. And try to avoid bit.ly and other link shorteners as they’ll get picked up by spam flags.
• This might not be news to you, but it's arguably the most important factor when it comes to deliverability: Get your targeting right. You improve deliverability by getting a high rate of replies, and low rate of unsubscribes and spam reports. So only send emails to people you truly think will benefit from your product.

Bonus: Here are some tools we've used to send cold email:

• PersistIQ—free to start.
• Streak—also free to start.
• Mixmax—integrates directly into Gmail.
• Mailshake—best for just starting out in cold outreach.
• Reply IO—has an AI email assistant to help craft messaging.
• Lemlist—similar to Mailshake, with multi-channel sequencing.

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.