Growth Newsletter #126

Mutiny, a website personalization tool, doubled their conversion rate on their homepage with a single word change.

Absurd, I know.

Normally we wouldn't even recommend an A/B test so small unless you have tons of traffic.

What did they do? They changed the button text on their homepage hero from "See it on your site" to "See it on your homepage." That's it.

The button links through to their live website demo. You enter your URL, and they let you play around with personalizing your website for different audience segments. 

This demo has two benefits: 

1. It lets you "try before you buy," alleviating a lot of objections or concerns, and
2. Nothing explains your product better than just seeing it in action. 

Now, you'd think the difference between "site" and "homepage" is minimal, but the word "homepage" is a lot more tangible and specific. Even our website has hundreds of pages. I can't clearly picture our "website" in my head. 

However, I do know what our homepage looks like. I know how valuable our homepage is.

And when I do hit the demo, I'm already primed to enter the URL of our homepage, rather than stopping to think which page would be best to test.

Uncertainty is a conversion killer. So remove as much of it as you can.

The lesson here? Words are powerful. Use ones that prime and remove uncertainty.

Profitwell has collected over 10 million pricing data points for SaaS products.

One thing they've found is that companies that offer "add-ons" (aka upsell) can boost revenue by 12-22% relative to when they just include them into base tiers. And boost LTV by 18-54% by increasing average order value and retention rates. 

Ironically, this happens even when that feature was previously included for free in a tier.

But how do you choose which features to include and which to make add-ons?

Here Patrick recommends the Rule of 40%:

1. List each feature in a spreadsheet. 
2. Assign a % to each feature based on the % of users who use that feature monthly.
3. If it's used by less than 40% of users, consider turning it into an add-on.
4. Often this could be integrations, analytics, or priority support—supplemental things that aren't core to the experience for most users.

Just make sure you don't do this with a "core" feature that most people use—or else people will likely be upset or just not sign up in the first place.

There are a few reasons why this add-on strategy works;

1. It makes the initial price lower, making them more likely to continue down the funnel.
2. Once they've already said "yes" to the base plan, a quick add-on that increases the price by 10-20% is a quick "sure, why not." It's the equivalent of the grocery store impulse buy candy bar. 
3. It means they get the features they want without needing to upgrade to the higher tier and feeling like they're paying for a bunch of stuff they don't need.

Try this out; it could be a meaningful boost in revenue.

Us marketers are nerds. We love judging the ads in our feeds.

Like this Facebook ad from Nood, the makers of hair removal products. Let’s break down what makes it so effective.

This stopped me (Joyce) in my tracks for a few reasons:

First, the creative is a black and white hand-drawn image—a far cry from every other sleekly designed ad on Facebook and a good example of a pattern interrupt. It also made me wonder, "What exactly is going on here?"

That brings us to the copy, which takes a “story first, product second” approach. Take a look:

“Well it happened… our designers went on vacation and now the marketing team is on their own creating ads.”

Nothing about the actual product until the next line.

“But we don’t need fancy graphic design to get our message across: The Flasher 2.0 provides Permanent Hair Reduction in the comfort of your home.”

This is a clever and entertaining way to sell your product, no flashy visuals needed.

And even though the ad copy is long, people actually read it all. You can tell because it ends with Nood inviting readers to draw a better ad for a chance to win a prize. And plenty of people actually shared their drawings in the comments!

Taking full advantage, Nood repurposed one for a retargeting campaign.

Ricky from Trailer Park Boys would say that’s "4 birds getting stoned at once." The ad:

• Sells Nood’s product
• Incentivizes people to engage
• Generates creative for future ad campaigns
• Personalizes the brand to make it more fun