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Growth tips #043

Growth tips #043

February 08, 2024

Welcome!

When you joined Growth Marketing Pros, we promised you one thing: Weekly, curated tips that (actually) help you grow. So here they are. 🚀

By the way, here's a link you can copy-paste to invite your colleagues to our Slack community:

Without further do, let's get started.

Prevent churn by letting customers pause their plans

Source: Growth Bites

If you only give customers the option to cancel their subscriptions, you might be losing people who would have actually preferred a less final option.

Reduce churn by allowing them to put their subscriptions on hold.

@nickfogle of Wavve ($83,000/mo) saw an immediate 3% decrease in churn when he started allowing his customers to pause their subscriptions instead of canceling outright. His paused users weren't paying anything so it was a lot like losing customers at first, but he found that they were way more likely to reactivate. And when they did, that was money in his pocket that otherwise would have been lost.

If you decide to give users the option to pause, you can increase the likelihood that they'll come back by sending email reminders and limited-time offers.
You can even let them set a date for the plan to automatically reactivate.

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18 B2B SaaS Marketing Strategies for 2024

What To Do When You’re Out of Ideas

Growth Talks: KPIs to Monitor for Product Launch Success

_{Brought by}_Solveo

Businesses must set clear, reasonable, and quantifiable goals to boost their chances of product launch success.

Because the stage of the product greatly affects KPIs, we are creating a series of articles covering the three key stages of launching: pre-launch, launch, and post-launch.
Make sure you read the first two parts before moving on to the third.

If you have already, it’s time to look into the post-launch KPIs to assure the success of your product launch.

Use "fence" attributes in your pricing tiers

Source: Demand Curve

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.

Thank you for reading! ✌️

We look forward to sharing more with you next week. Stay tuned!