Demand Curve - The Growth Newsletter #065
The Growth Newsletter #065
This week we're covering referral programs, copywriting, and retention tactics.
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We'll grow your company
Most of the tactics we share with you here in the newsletter are performance-based—they're directly related to acquiring customers.
But we believe many companies are missing out on the growth opportunities that come from building a brand. To avoid hitting a growth plateau, it's best to focus on brand and performance.
Our agency, Bell Curve, does just that. For funded startups and high-growth enterprises, Bell Curve takes a holistic, story-led approach to growth marketing.
After being at capacity for the past few months, we’re ready to take on a few new partners. We’re opening this up to newsletter readers this week before considering other companies. If you’re interested in working together, drop us a line here.
1. Grow your referral program in 3 phases Insight from Demand Curve.
Referral programs have three phases of maturity. Understanding yours will help you maximize your referrals ROI.
Phase 1: Test. The point of this phase is to test your referral program incentive as quickly and cheaply as possible. Iteration is the action, profitability is the goal.
Here’s what this phase might look like:
Spend time on this phase. Early-stage referral programs are not yet “set it and forget it.” Just like any other marketing channel, they must be actively monitored and improved before you start scaling up.
Test, then invest.
Phase 2: Prove. Once you find an incentive that converts and messaging that resonates, start removing friction from the process.
Phase 3: Scale. When your referral program is predictably generating prospects—and the economics still make sense—it’s time to invest in referral program software, like Rewardful, GrowSurf, or Referral Rock.
Create feedback loops so your referrers know their efforts are paying off. Even if their sharing doesn't yield a referral, seeing that their friend clicked and viewed is still encouraging (and might spur another referral).
Keep an eye on your economics to make sure customer acquisition cost (CAC) is comparable to your other acquisition channels. Monitor the quality of your prospects to keep out any fraudulent gaming of the program.
2. How Patagonia taps into opposing emotions at the same time Insight from Demand Curve and Jon Morrow.
Check out this Patagonia ad:
(Image source: @dailyadcoffee)
Copywriter Jon Morrow defines power words as “persuasive, descriptive words that trigger a positive or negative emotional response. They can make us feel scared, encouraged, aroused, angry, greedy, safe, or curious.”
If you “sprinkle in a few, … you can transform dull, lifeless words into persuasive words that compel readers to take action.”
What’s remarkable about this ad from Patagonia isn’t that it uses power words. All great copywriting does.
The remarkable thing about it is that those power words tap into different emotions depending on the order you read them in.
Reading from top down, they cause anger and fear: screwed, it’s too late, we don’t trust anyone, we don’t have a choice.
From the bottom up, the emphasis changes entirely, to hope and encouragement: choice, livable, imagine, healthy future.
Brilliant.
The poem is followed by that kicker of a tagline: “Buy Less, Demand More.” That’s shocking from a retailer—and extremely affecting.
The takeaway? Appeal to your readers’ emotions. We tend to think of decision making as being connected to the rational part of our brain, but the opposite is true. Decision making is emotional.
Feelings dictate decisions. Emotional responses are why we share things that go viral, why we donate to causes, and why we buy what we buy (or don’t buy what we don’t need, in the case of Patagonia).
Refer back to Morrow’s list as you write your copy. Consider how your writing instills fear, encouragement, arousal, anger, greed, safety, or curiosity. If, instead of triggering a high-arousal emotion, it makes you feel merely content, a little bit sad, or just kind of bored, it’s time for a rewrite.
That Patagonia ad is one in a collection of the strongest copywriting examples we’ve come across. You can check out the full article here.
3. Retention strategies to lower marketing costs and increase profitability Insight from Syed Balkhi on Indie Hackers.
Repeat customers spend ~67% more than first-time buyers. And it costs 6-7x more to turn a new visitor into a customer than it does to retain an existing customer.
Improving retention can fix a leaky-bucket business, yet only 18% of companies focus on it.
To increase profitability and lower marketing costs, consider implementing the following four retention strategies.
1. Start a loyalty program. Loyalty programs incentivize customers to return to your site to buy, reengage with your product, and promote your product on your behalf.
Tools like Loyalty Lion or Smile.io can get you started.
Here are a few loyalty models to explore:
2. Collect feedback throughout the sales process. When implemented, customer feedback can help lower CAC, improve your marketing's effectiveness, and improve retention.
How to implement:
3. Follow an omnichannel engagement strategy. Compared to single-channel marketing, an omnichannel approach can improve retention rates and engagement by 90%.
Quality engagement always starts with quality content. Here are a few ways to encourage omnichannel engagement via content and community:
4. Provide exceptional customer support. Anticipate all the different ways someone might need support (see point #2), and implement as many as make sense for your business.
Keep track of what you learn, and make gradual changes that address your target audience's goals, pain points, and interests. Accomplish that, and you'll have no problem boosting your retention rate.
New links New from the Demand Curve blog:
Partner with us: Engage with our audience by sponsoring Demand Curve.
Audience building is back: We've had some serious success stories come out of the first three cohorts of our live audience-building course. But Blake Burge's growth might take the cake. In less than a year, Blake went from a few to 219k followers on Twitter. He's teaming up with Sahil Bloom for a four-day audience-building course (the course is on Maven and not run by Demand Curve). They'll share the tactics, frameworks, and principles that helped them grow to 900k+ combined followers across platforms. Grab your seat here. Marketing news News marketers should know about:
New marketing jobs
If you're looking for a top growth role, check out the opportunities below from our job board.
Something fun Source: Marketoonist
Want more growth tactics? We're giving away our entire back catalog of tactics to folks who refer two friends to this newsletter. Here's your referral link to share: https://sparklp.co/385a143f. You can track your referrals here. We'll automatically email you the password-protected tactics page once you've referred two people.
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Who's Demand Curve? We’re who marketers and founders rely on to solve real marketing problems. We skip trends and fluffy stories and only share high-quality, vetted, and actionable growth content from the top 1% of marketers.
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See you next week.
— Nick, Grace, Joyce, Dennis, and the DC team. Nick Costelloe Grace Parazzoli Joyce Chou Dennis Buckley
© 2022 Demand Curve, Inc. All rights reserved. 4460 Redwood Hwy, Suite 16-535, San Rafael, California, United States |
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