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Best Strategies for Selling SaaS in 2022

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Propelled by the increase in demand for cloud-based services over the previous two years, Software as a Service, or SaaS for short, remains one of the most competitive markets in 2022.

If done right, SaaS solutions can be used to attract more customers, increase sales and revenue, as well as bolster long-term business growth. That is why the process of effectively marketing and selling SaaS products is crucial to the success of any SaaS enterprise.

Before we get into some of the tried-and-true strategies on selling SaaS services, let’s go over the basics.

How Does Selling SaaS Work?

The main benefit of the SaaS model is that the end-user is not required to download or install any programs (app counterparts notwithstanding) in order to use the service. They simply pay the indicated price and gain access to it immediately.

A typical SaaS product is managed by a team of customer experience professionals and supported by the SaaS provider’s engineers. The pricing model is normally subscription-based, which is why your focus should be on promoting higher-end iterations of your service (upselling), as well as retaining existing customers while simultaneously seeking out new ones.

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To summarize, we can see that SaaS marketing boils down to the following 3 stages:

  1.  Acquisition: finding (new) customers
  2.  Conversion: getting your customers to buy your product and become subscribers
  3.  Retention: retaining those subscribers so that they keep paying for your product

Rather than merely closing a deal and moving on to the next lead, selling your SaaS products effectively entails asking customers to continue purchasing them on a monthly or annual basis.

It’s a win-win situation: instead of the clients spending hundreds of dollars on a product package that will be obsolete next year, they can get the latest version with ongoing maintenance for a much cheaper monthly charge. In exchange, SaaS businesses have a steady stream of revenue.

However, as SaaS has grown in popularity, so has the competition, and clients are able to switch from one service to another at any moment. Therefore, if you want to increase your SaaS sales, you must properly show the long-term value of your service, communicate your latest product changes and explain why it is the best option on the market.

Because marketing and selling your SaaS product is competitive and complex, provide your team with a SaaS dashboard of comprehensive business metrics so that everyone knows the status of sales and marketing at any given time. Much of SaaS success depends on making progress swiftly, so a single source of valid information is an essential management tool.  

Tailor Your Lead Generation Strategy to Your Niche

Best Strategies for Selling SaaS in 2022

There are as many different strategies to generate leads for your business as there are SaaS products. That is why you will always need to tailor your lead generation methods according to your niche.

One of the biggest differences is whether you’re marketing to consumers (also known as end users) or other businesses. B2C prospects make their own purchasing decisions and are usually in a position to commit as soon as they’re convinced; however, they’re skeptical and may require a free trial before they feel comfortable providing payments or personal information. B2B SaaS marketing targets prospects who typically share decisions among colleagues (although sometimes it’s not clear who has authority to make the final decision). They have to request or negotiate the budget and may need detailed technical information to ensure compatibility with their existing systems or security protocols.

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Generally, consumer niches provide faster sales but prefer lower prices, while business niches require a longer sales process but can be more lucrative.

So, tailor your strategy to your niche; however, be aware of these relatively universal lead generation approaches that you can adapt to many different types of markets.

Search Engine Optimization

Search engines remain major drivers of leads for many SaaS businesses. To stay on top of your SEO game, always keep an eye on your rankings to detect keywords which bring about high volumes of traffic, but also focus on putting out quality content to drive the right kind of traffic which turns into qualified leads that are ready to become buyers.

Content Marketing

Similarly to what is stated above, the content you publish for the purposes of promoting your SaaS solution should match the needs and interests of potential customers. You can achieve this by mapping along their customer journey. Does your content include the kind of information that prospective buyers are looking for when they set out to find a product or service like yours? To obtain organic traffic and leads, you should be blogging and posting on social media on a regular basis about topics that are important to your target audience.

Landing Pages and Ads

Perhaps the most obvious one, landing pages and ads, often perform well when it comes to lead generation. Although somewhat on the expensive side, a well-designed Google Ads or similar marketing campaign combined with an optimized landing page can be a winning combo when it comes to generating leads.

Specialty Marketing

Some niches or sub-niches achieve success using narrow marketing channels. For example, if your SaaS product targets train or bus riders, then you might reach them using a combination of location analytics that tell you when the terminal is full, and closed network video advertising that plays your ad on display boards when there are more than 100 people present. Or if you target the higher education fundraising market, you might learn that their SaaS solutions must incorporate telephone calling components, so automated phone calling to help market your solution could make sense.

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Tell a Story with Your Product

1653548814 787 Best Strategies for Selling SaaS in 2022

Product storytelling plays a huge part in how well you position your SaaS solution on the market, which consequently impacts the success of your sales. Great stories garner greater attention, and it takes marvelous storytelling to stand out, strike a chord with your audience and incentivize them to become buyers.

Apart from offering a SaaS product that addresses the needs of your niche (be it B2C or B2B), try to craft a memorable marketing and sales narrative in relation to your product.

Then, when your salespeople contact the leads your storytelling develops, find out how to tailor your sales pitch to them individually using AI solutions such as Crystal, which provides you with insights about the behavioral traits and preferences of each person your sales team contacts. Together with great storytelling, this two-step approach can speed up the process of selling and help you achieve better results.  

To get a better understanding of what your outreach strategy should be, think about the following things:

  • The emotions you want to evoke from your audience. Do you want them to feel motivated, empowered, understood, or simply happy when reading about the story behind your product? Provide enough information to support those emotions.
  • Making your story relatable and genuine. You are selling a product to real people with diverse (but hopefully common) interests. What ties them together and how does your solution address those interests? Be clear about what your purpose is and communicate it with passion, as people always gravitate more towards genuine and inspiring narratives.
  • Stories about people. At its core, your story is always about someone. For example, explain the benefits of your service through the eyes of a user. Or, think about the unsung heroes at your company—the folks with interesting positions who don’t usually communicate with the general public, and tell their stories as well.

Free Trials and Freemiums

1653548814 722 Best Strategies for Selling SaaS in 2022

Here are some oldies, but goldies.

Free Trials

If you are looking to lock in prospective buyers, offer a free trial for a fixed time period (e.g. 30 days). A free trial accomplishes the goal of getting people to demo your SaaS product or service because they can do it for free. Generally, some type of core functionality that delivers massive benefits is not included in the free plan but in the ‘freemium’ version.

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Freemium

The freemium model is a twist on the free trial. It allows limited access to the entire suite of premium tools. The idea behind this strategy is that, for the general population, upgrading to a paid premium subscription is necessary to maximize the benefits that the tool brings to the table. It essentially acts as an incentive to upgrade to the highest level of subscription.

If you are launching a new product and want to demonstrate its uses to as many people as possible, it would be clever not to require credit card information to gain access to the trial version. However, do ask your customers to leave their email and some basic information so you could build your lead database.

Different Payment Plans for Different Customers

Remember to think about diversifying your subscription plans to target different kinds of customers and maximize your audience reach.

For example, if you’re marketing your SaaS product to consumers (B2C), you might want to appeal to them based on typical income ranges, profession, or some combination of the above. Let’s say your SaaS product has an app that helps independent service people who work from their vehicles (not from an office) measure how much time and fuel they spend on various parts of their job.

To find the right parts of your market, you’ll want to search for average salaries earned by these consumers. You might learn that grocery delivery people make too little to afford a SaaS subscription at your “main” price, but a HVAC technician’s salary is enough to make them a good prospect. So, you offer a bare-bones version of your product at just a few dollars for grocery deliverers, but a full version for HVAC and similar technicians at a mainstream price.

If you’re marketing your SaaS product to businesses (B2B), you might want to base your pricing on the number of users. So, a company with just a few users might pay the full $59/month per person for a subscription, but if the company buys subscriptions for hundreds of its employees, you could drop the price to $39 per person. If they have thousands of employees who subscribe, you could drop the price to just $20 per person  – everybody wins.  

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Keep an Eye on Competition

1653548815 613 Best Strategies for Selling SaaS in 2022

Although not a sales strategy per se, it goes without saying that the success of your business will partly depend on whatever field you are looking to position yourself in as a SaaS provider.

Whether you are offering a new product in an established market (e.g. you’re starting an online course platform), or pioneering a new niche, it is helpful to look at what other, similar companies already have on offer, and even check out what their customers are saying about them.

Points to Think About

Is there an element of your competitor’s SaaS product that their customers are not happy with, e.g. the product dashboard or subscription options? Could you add or improve this element in your own service, then market it by specifically emphasizing this improved feature?

Is there something your competitors are doing better than you that might appeal to your own customers and drive new ones to buy your product?

Healthy competition is knowing what your competitors are doing and using that to advance your own business. Aside from letting you stay ahead of the curve, this strategy drives lead generation by capturing the attention of customers who may just be on the lookout for a new or different SaaS provider.

Conclusion

SaaS has always required businesses to think beyond the close, so the most critical aspect of your sales strategies is that they should be proactive.

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Make sure that new and old customers alike keep getting the most out of your product by looking for ways to show initiative by checking that they have everything they need.

If done correctly, everything we have discussed so far will enable you to continue bringing value to your customers and your SaaS business in the long run.

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Streamlining Processes for Increased Efficiency and Results

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Streamlining Processes for Increased Efficiency and Results

How can businesses succeed nowadays when technology rules?  With competition getting tougher and customers changing their preferences often, it’s a challenge. But using marketing automation can help make things easier and get better results. And in the future, it’s going to be even more important for all kinds of businesses.

So, let’s discuss how businesses can leverage marketing automation to stay ahead and thrive.

Benefits of automation marketing automation to boost your efforts

First, let’s explore the benefits of marketing automation to supercharge your efforts:

 Marketing automation simplifies repetitive tasks, saving time and effort.

With automated workflows, processes become more efficient, leading to better productivity. For instance, automation not only streamlines tasks like email campaigns but also optimizes website speed, ensuring a seamless user experience. A faster website not only enhances customer satisfaction but also positively impacts search engine rankings, driving more organic traffic and ultimately boosting conversions.

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Automation allows for precise targeting, reaching the right audience with personalized messages.

With automated workflows, processes become more efficient, leading to better productivity. A great example of automated workflow is Pipedrive & WhatsApp Integration in which an automated welcome message pops up on their WhatsApp

within seconds once a potential customer expresses interest in your business.

Increases ROI

By optimizing campaigns and reducing manual labor, automation can significantly improve return on investment.

Leveraging automation enables businesses to scale their marketing efforts effectively, driving growth and success. Additionally, incorporating lead scoring into automated marketing processes can streamline the identification of high-potential prospects, further optimizing resource allocation and maximizing conversion rates.

Harnessing the power of marketing automation can revolutionize your marketing strategy, leading to increased efficiency, higher returns, and sustainable growth in today’s competitive market. So, why wait? Start automating your marketing efforts today and propel your business to new heights, moreover if you have just learned ways on how to create an online business

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How marketing automation can simplify operations and increase efficiency

Understanding the Change

Marketing automation has evolved significantly over time, from basic email marketing campaigns to sophisticated platforms that can manage entire marketing strategies. This progress has been fueled by advances in technology, particularly artificial intelligence (AI) and machine learning, making automation smarter and more adaptable.

One of the main reasons for this shift is the vast amount of data available to marketers today. From understanding customer demographics to analyzing behavior, the sheer volume of data is staggering. Marketing automation platforms use this data to create highly personalized and targeted campaigns, allowing businesses to connect with their audience on a deeper level.

The Emergence of AI-Powered Automation

In the future, AI-powered automation will play an even bigger role in marketing strategies. AI algorithms can analyze huge amounts of data in real-time, helping marketers identify trends, predict consumer behavior, and optimize campaigns as they go. This agility and responsiveness are crucial in today’s fast-moving digital world, where opportunities come and go in the blink of an eye. For example, we’re witnessing the rise of AI-based tools from AI website builders, to AI logo generators and even more, showing that we’re competing with time and efficiency.

Combining AI-powered automation with WordPress management services streamlines marketing efforts, enabling quick adaptation to changing trends and efficient management of online presence.

Moreover, AI can take care of routine tasks like content creation, scheduling, and testing, giving marketers more time to focus on strategic activities. By automating these repetitive tasks, businesses can work more efficiently, leading to better outcomes. AI can create social media ads tailored to specific demographics and preferences, ensuring that the content resonates with the target audience. With the help of an AI ad maker tool, businesses can efficiently produce high-quality advertisements that drive engagement and conversions across various social media platforms.

Personalization on a Large Scale

Personalization has always been important in marketing, and automation is making it possible on a larger scale. By using AI and machine learning, marketers can create tailored experiences for each customer based on their preferences, behaviors, and past interactions with the brand.  

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This level of personalization not only boosts customer satisfaction but also increases engagement and loyalty. When consumers feel understood and valued, they are more likely to become loyal customers and brand advocates. As automation technology continues to evolve, we can expect personalization to become even more advanced, enabling businesses to forge deeper connections with their audience.  As your company has tiny homes for sale California, personalized experiences will ensure each customer finds their perfect fit, fostering lasting connections.

Integration Across Channels

Another trend shaping the future of marketing automation is the integration of multiple channels into a cohesive strategy. Today’s consumers interact with brands across various touchpoints, from social media and email to websites and mobile apps. Marketing automation platforms that can seamlessly integrate these channels and deliver consistent messaging will have a competitive edge. When creating a comparison website it’s important to ensure that the platform effectively aggregates data from diverse sources and presents it in a user-friendly manner, empowering consumers to make informed decisions.

Omni-channel integration not only betters the customer experience but also provides marketers with a comprehensive view of the customer journey. By tracking interactions across channels, businesses can gain valuable insights into how consumers engage with their brand, allowing them to refine their marketing strategies for maximum impact. Lastly, integrating SEO services into omni-channel strategies boosts visibility and helps businesses better understand and engage with their customers across different platforms.

The Human Element

While automation offers many benefits, it’s crucial not to overlook the human aspect of marketing. Despite advances in AI and machine learning, there are still elements of marketing that require human creativity, empathy, and strategic thinking.

Successful marketing automation strikes a balance between technology and human expertise. By using automation to handle routine tasks and data analysis, marketers can focus on what they do best – storytelling, building relationships, and driving innovation.

Conclusion

The future of marketing automation looks promising, offering improved efficiency and results for businesses of all sizes.

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As AI continues to advance and consumer expectations change, automation will play an increasingly vital role in keeping businesses competitive.

By embracing automation technologies, marketers can simplify processes, deliver more personalized experiences, and ultimately, achieve their business goals more effectively than ever before.

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Will Google Buy HubSpot? | Content Marketing Institute

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Why Marketers Should Care About Google’s Potential HubSpot Acquisition

Google + HubSpot. Is it a thing?

This week, a flurry of news came down about Google’s consideration of purchasing HubSpot.

The prospect dismayed some. It delighted others.

But is it likely? Is it even possible? What would it mean for marketers? What does the consideration even mean for marketers?

Well, we asked CMI’s chief strategy advisor, Robert Rose, for his take. Watch this video or read on:

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Why Alphabet may want HubSpot

Alphabet, the parent company of Google, apparently is contemplating the acquisition of inbound marketing giant HubSpot.

The potential price could be in the range of $30 billion to $40 billion. That would make Alphabet’s largest acquisition by far. The current deal holding that title happened in 2011 when it acquired Motorola Mobility for more than $12 billion. It later sold it to Lenovo for less than $3 billion.

If the HubSpot deal happens, it would not be in character with what the classic evil villain has been doing for the past 20 years.

At first glance, you might think the deal would make no sense. Why would Google want to spend three times as much as it’s ever spent to get into the inbound marketing — the CRM and marketing automation business?

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At a second glance, it makes a ton of sense.

I don’t know if you’ve noticed, but I and others at CMI spend a lot of time discussing privacy, owned media, and the deprecation of the third-party cookie. I just talked about it two weeks ago. It’s really happening.

All that oxygen being sucked out of the ad tech space presents a compelling case that Alphabet should diversify from third-party data and classic surveillance-based marketing.

Yes, this potential acquisition is about data. HubSpot would give Alphabet the keys to the kingdom of 205,000 business customers — and their customers’ data that almost certainly numbers in the tens of millions. Alphabet would also gain access to the content, marketing, and sales information those customers consumed.

Conversely, the deal would provide an immediate tip of the spear for HubSpot clients to create more targeted programs in the Alphabet ecosystem and upload their data to drive even more personalized experiences on their own properties and connect them to the Google Workspace infrastructure.

When you add in the idea of Gemini, you can start to see how Google might monetize its generative AI tool beyond figuring out how to use it on ads on search results pages.

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What acquisition could mean for HubSpot customers

I may be stretching here but imagine this world. As a Hubspoogle customer, you can access an interface that prioritizes your owned media data (e.g., your website, your e-commerce catalog, blog) when Google’s Gemini answers a question).

Recent reports also say Google may put up a paywall around the new premium features of its artificial intelligence-powered Search Generative Experience. Imagine this as the new gating for marketing. In other words, users can subscribe to Google’s AI for free, but Hubspoogle customers can access that data and use it to create targeted offers.

The acquisition of HubSpot would immediately make Google Workspace a more robust competitor to Microsoft 365 Office for small- and medium-sized businesses as they would receive the ADDED capability of inbound marketing.

But in the world of rented land where Google is the landlord, the government will take notice of the acquisition. But — and it’s a big but, I cannot lie (yes, I just did that). The big but is whether this acquisition dance can happen without going afoul of regulatory issues.

Some analysts say it should be no problem. Others say, “Yeah, it wouldn’t go.” Either way, would anybody touch it in an election year? That’s a whole other story.

What marketers should realize

So, what’s my takeaway?

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It’s a remote chance that Google will jump on this hard, but stranger things have happened. It would be an exciting disruption in the market.

The sure bet is this. The acquisition conversation — as if you needed more data points — says getting good at owned media to attract and build audiences and using that first-party data to provide better communication and collaboration with your customers are a must.

It’s just a matter of time until Google makes a move. They might just be testing the waters now, but they will move here. But no matter what they do, if you have your customer data house in order, you’ll be primed for success.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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5 Psychological Tactics to Write Better Emails

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5 Psychological Tactics to Write Better Emails

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

I’ve tested 100s of psychological tactics on my email subscribers. In this blog, I reveal the five tactics that actually work.

You’ll learn about the email tactic that got one marketer a job at the White House.

You’ll learn how I doubled my 5 star reviews with one email, and why one strange email from Barack Obama broke all records for donations.

→ Download Now: The Beginner's Guide to Email Marketing [Free Ebook]

5 Psychological Tactics to Write Better Emails

Imagine writing an email that’s so effective it lands you a job at the White House.

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Well, that’s what happened to Maya Shankar, a PhD cognitive neuroscientist. In 2014, the Department of Veterans Affairs asked her to help increase signups in their veteran benefit scheme.

Maya had a plan. She was well aware of a cognitive bias that affects us all—the endowment effect. This bias suggests that people value items higher if they own them. So, she changed the subject line in the Veterans’ enrollment email.

Previously it read:

  • Veterans, you’re eligible for the benefit program. Sign up today.

She tweaked one word, changing it to:

  • Veterans, you’ve earned the benefits program. Sign up today.

This tiny tweak had a big impact. The amount of veterans enrolling in the program went up by 9%. And Maya landed a job working at the White House

Boost participation email graphic

Inspired by these psychological tweaks to emails, I started to run my own tests.

Alongside my podcast Nudge, I’ve run 100s of email tests on my 1,000s of newsletter subscribers.

Here are the five best tactics I’ve uncovered.

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1. Show readers what they’re missing.

Nobel prize winning behavioral scientists Daniel Kahneman and Amos Tversky uncovered a principle called loss aversion.

Loss aversion means that losses feel more painful than equivalent gains. In real-world terms, losing $10 feels worse than how gaining $10 feels good. And I wondered if this simple nudge could help increase the number of my podcast listeners.

For my test, I tweaked the subject line of the email announcing an episode. The control read:

“Listen to this one”

In the loss aversion variant it read:

“Don’t miss this one”

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It is very subtle loss aversion. Rather than asking someone to listen, I’m saying they shouldn’t miss out. And it worked. It increased the open rate by 13.3% and the click rate by 12.5%. Plus, it was a small change that cost me nothing at all.

Growth mindset email analytics

2. People follow the crowd.

In general, humans like to follow the masses. When picking a dish, we’ll often opt for the most popular. When choosing a movie to watch, we tend to pick the box office hit. It’s a well-known psychological bias called social proof.

I’ve always wondered if it works for emails. So, I set up an A/B experiment with two subject lines. Both promoted my show, but one contained social proof.

The control read: New Nudge: Why Brands Should Flaunt Their Flaws

The social proof variant read: New Nudge: Why Brands Should Flaunt Their Flaws (100,000 Downloads)

I hoped that by highlighting the episode’s high number of downloads, I’d encourage more people to listen. Fortunately, it worked.

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The open rate went from 22% to 28% for the social proof version, and the click rate, (the number of people actually listening to the episode), doubled.

3. Praise loyal subscribers.

The consistency principle suggests that people are likely to stick to behaviours they’ve previously taken. A retired taxi driver won’t swap his car for a bike. A hairdresser won’t change to a cheap shampoo. We like to stay consistent with our past behaviors.

I decided to test this in an email.

For my test, I attempted to encourage my subscribers to leave a review for my podcast. I sent emails to 400 subscribers who had been following the show for a year.

The control read: “Could you leave a review for Nudge?”

The consistency variant read: “You’ve been following Nudge for 12 months, could you leave a review?”

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My hypothesis was simple. If I remind people that they’ve consistently supported the show they’ll be more likely to leave a review.

It worked.

The open rate on the consistency version of the email was 7% higher.

But more importantly, the click rate, (the number of people who actually left a review), was almost 2x higher for the consistency version. Merely telling people they’d been a fan for a while doubled my reviews.

4. Showcase scarcity.

We prefer scarce resources. Taylor Swift gigs sell out in seconds not just because she’s popular, but because her tickets are hard to come by.

Swifties aren’t the first to experience this. Back in 1975, three researchers proved how powerful scarcity is. For the study, the researchers occupied a cafe. On alternating weeks they’d make one small change in the cafe.

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On some weeks they’d ensure the cookie jar was full.

On other weeks they’d ensure the cookie jar only contained two cookies (never more or less).

In other words, sometimes the cookies looked abundantly available. Sometimes they looked like they were almost out.

This changed behaviour. Customers who saw the two cookie jar bought 43% more cookies than those who saw the full jar.

It sounds too good to be true, so I tested it for myself.

I sent an email to 260 subscribers offering free access to my Science of Marketing course for one day only.

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In the control, the subject line read: “Free access to the Science of Marketing course”

For the scarcity variant it read: “Only Today: Get free access to the Science of Marketing Course | Only one enrol per person.”

130 people received the first email, 130 received the second. And the result was almost as good as the cookie finding. The scarcity version had a 15.1% higher open rate.

Email A/B test results

5. Spark curiosity.

All of the email tips I’ve shared have only been tested on my relatively small audience. So, I thought I’d end with a tip that was tested on the masses.

Back in 2012, Barack Obama and his campaign team sent hundreds of emails to raise funds for his campaign.

Of the $690 million he raised, most came from direct email appeals. But there was one email, according to ABC news, that was far more effective than the rest. And it was an odd one.

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The email that drew in the most cash, had a strange subject line. It simply said “Hey.”

The actual email asked the reader to donate, sharing all the expected reasons, but the subject line was different.

It sparked curiosity, it got people wondering, is Obama saying Hey just to me?

Readers were curious and couldn’t help but open the email. According to ABC it was “the most effective pitch of all.”

Because more people opened, it raised more money than any other email. The bias Obama used here is the curiosity gap. We’re more likely to act on something when our curiosity is piqued.

Email example

Loss aversion, social proof, consistency, scarcity and curiosity—all these nudges have helped me improve my emails. And I reckon they’ll work for you.

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It’s not guaranteed of course. Many might fail. But running some simple a/b tests for your emails is cost free, so why not try it out?

This blog is part of Phill Agnew’s Marketing Cheat Sheet series where he reveals the scientifically proven tips to help you improve your marketing. To learn more, listen to his podcast Nudge, a proud member of the Hubspot Podcast Network.

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