Andreas Mitschkegrowth focus UX | CRO | SMA
Bio

Have helped growing venture-backed and bootstrapped projects | former@google@kpmg@kochabo@feedbackfabrik | found@questalk(acquihire), aspiring to become @500distro Germany :)



Recent Answers


Do not consider this as a fixed and rigid decision. Consider this more like an opportunity to realize that you should test your pricing strategy as early as possible or at least now.

Every pricing strategy you choose does work, the question is can you find your optimum?

In your position, I'd recommend to make up your mind about your features first. Sit together and think about what features are necessary for which buying persona you are catering to. To simplify this, forget what I just wrote and think about the feature set for your MVP to make it work for your user. The minimum solution fit, a car can't drive without 4 tires - there you have your basic pricing model - features: 4 tires.

Now common practice is offering a very low pricing model that is meant to nurture your leads to upsell them to the pricing you want, your basic pricing. This almost free or free pricing tier lacks a certain feature that is "almost crucial" - what this is in your case, I do not know, because I do not know who you are ;)

Though, there is a third tier, the all feature tier which is the enterprise model. You most certainly know this, because you see this everywhere.

You can read more about pricing pages here: http://conversionxl.com/10-principles-of-effective-pricing-pages/

The problem with making your pricing model highly flexible is that prospecting customers do not know what they want/need or what they are willing to pay for it as long as you do not give them a clear proposal. Though, your SaaS might have a value proposition that might be perfect for a dynamic pricing structure - I do not know that, because I do not know you ;)

For example, there are relative pricing models like retargeter which pricing is based upon the number of impressions, instead of a feature set and on the use-case - off- or on-site.

Keep in your mind, that constantly testing pricing models might be illegal in your region. Though, you can always conduct user interviews and simply ask about this issue. But be aware, do not make the mistake to lead an answer with a too pushing question. Do not ask blatant questions like "Does the pricing of 8$ appeal to you" "Would you buy the product with this functionality for 8$" instead ask for ranges. Ask for "Would you consider to pay a price between 5-9$", which also doubles as you already have insight in your customers potential maximal buying willingness.

I'd also think about behavioural targeting - e.g. users of demographic x get displayed another price than y. This, as a matter of course, needs to be tackled very carefully and thorough. Experience helps ;)

Pricing generally is a whole own universe of conversion rate tests and techniques based upon behavioural insight and cognitive analysis. Charm pricing, decoys, reframing the environment of your prices, even the size of the font of your pricing can have an impact. Heck, even just removing the currency sign can have an impact on your CR: http://isiarticles.com/bundles/Article/pre/pdf/1798.pdf

In your case, one intuitive test I would drive would be bundles. Means offering separated tiers, but also a discount bundle (though the discount is still higher than the single prices you offer "right now" - reframed).

I am a VP of growth and my focus is on UX and CRO and this is one of those field I am personally excited about. So, sorry for the long text ;)


#1: The system you use to track your referral market. It must be reliable. If you have an unrewarded referred customer you will quickly get bad WOM effects. At best has a lot of features were to place a referral request: e.g. exit-request, pop-up, email campaign templates. Handle the relationships from referrers to referred customer.

#2: Your brand value. A referral system is not an affiliate system. An affiliate system is an external paid acquisition channel, a referral system, however, leverages your trust value of a customer. Hence, she feels good to introduce a friend to your product. The incentive method is not the primary driver in referrals, it's the brand value you established in your market. Your customers "want" to promote your product, because they feel good to be "the first one" to know about it and introduce their peers and social circle. If they gain +25GB, +10 e-commerce points, +20$ is a secondary tier incentive. #1 is they want to because they feel like it gains them authority, social validation and other maslovian feedback.

#3 Might not work, because you have not the right customer relationship setup, not developed the right customer profile yet and thus market to a wrong customer cohort. You might take bad insights out of this ending in a quick assessment of the channel.

Tbh, a referral system is the cheapest and best way of semi-paid customer acquisition. But, it comes with a huge requirement: established trust and brand value.


Just do it!

No, seriously, I'd not recommend to talk to someone, because it basically is more a thing of getting to know the interface and the quirks of doing x and y.

I'd neither advise someone to start using a 3rd party if you do have someone who can invest a bit time to learn the platform. However, if serious scaling is a close requirement, then you're forced to either get an in-house team or outsource it.

I usually reach <.5$ CPA and I also usually have best experiences with testing myriad of AD sets. Keep in your mind, always testing:
copy: tone, audience keywords, actionable keywords etc.
image: emotional triggers, quality, visual objects etc.
target audience: try to refine your scope to your buying persona, not your marketing persona

Here are some resources to begin with and set you up on a good track.

This is comprehensive enough to introduce you to most mechanics:
https://adespresso.com/academy/guides/facebook-ads-optimization/

This is a short list of what to optimize for beginners:
http://www.socialmediaexaminer.com/optimize-your-facebook-ads/

If you do not yet know what you want to achieve with the ADs (brand-awareness, retargeting, CTR, other actions or conversion types), this post is listing most types and its use:
http://www.jonloomer.com/2015/05/05/facebook-ads-bidding/


Do those prospects come from an opt-in process?
Are they aware that your brand obtained their data?

If not, than you are cold-calling them and no matter who it is, we humans do not like to receive cold-calls, right.

Though, you are in a premium market, thus you are in the market to put in a lot of effort to warm them up or to get in front of your leads.

In your case, you already have their names and mail addresses. I'd get those mail addresses into gmail and use discoverly to receive their social media accounts.
Discoverly is a chrome plugin that will automatically retrieve the mail addresses linked social media accounts, if there are some. http://discover.ly/

Armed with those you can do further research and look if they have shared interest or even know eachother with followerwonk.com or buzzsumo.com.

You can use this data to prioritize your list as you already have a positive WOM signal if they know each other and only one becomes your customer. I'd advise to create a spreadsheet to keep track of your research.

I'd consider to think about an outreach method with your facebook channel as your prospects can immediately associate your account with your business giving you higher trust-value than a faceless cold-call and especially if they can see your work without any friction and low mental effort - just a click away.

You may even gain insights to their actual consumption patterns, e.g. you might see someone publishing an event that is related to your business and they are going to - thus you could approach them on spot.

You could also gain additional insights about lead quality with realizing at what stage of their "marriage preparation" they are. With this you can at least weed out the non-qualified leads, those that are just "interested" but far from making an elaborate purchasing decision.

There is so much you could do with that data,but even if all of these seem out of your willingness,take this advice cold-mailing > cold-calls.

Hope that helped a bit ;)
-Andi


The tags are intended to guide the crawler to achieve the "best fitting" content for the respective region.

These will "not" increase your SERP position. Though these are best-practice mechanics, that definitely increase your user's experience coming from SEs.

Additionally, you then have better control over the content you "know" will be served to the right user coming from search engines. Hence you can display custom content respective to the user's origin.

Pretty cool, right. Regarding you could serve different lead-magnets with knowing the right audience will see them.


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