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What is IaaS? How Does it Affect Your e-Commerce Site?

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what is iaas how does it affect your e commerce site

Cloud computing has taken over in recent years, and it offers many opportunities for businesses and users. The terminology can be a little complex though, and like with many IT-related things, there are lots of acronyms that get thrown around.

IaaS is one acronym you might have seen, but what does it mean, and how can it affect your e-commerce store?

Along with PaaS and SaaS, these acronyms describe the different ways businesses can use cloud technology, and choosing the right one for your e-commerce store can make a big difference.

What IaaS Means for Your Website

If you’re creating a website today, there’s a good chance it’s going to be hosted in the cloud. Very few companies maintain their own servers; instead, they rely on third-party companies to take care of many elements of their online presence.

The distinction between IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service) is crucial because it dictates what level of control you have over your website.

For some businesses, particularly those with large, complex e-commerce sites, infrastructure as a service will likely be the best option because it allows for greater flexibility and control.

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Every day, more and more businesses move their infrastructure to the cloud, and it’s important they understand how best to use it to get the best results. IaaS, SaaS, and PaaS are simply ways of describing how you use the cloud—and each business will do this slightly differently.

Today, 90% of businesses use the cloud. According to some estimates, cloud data centers will soon process 94% of workloads.

This means it’s vitally crucial for businesses to understand what they’re investing in and how they can make the most of cloud computing.

Cloud Computing: IaaS Vs. SaaS Vs. PaaS Vs. Serverless Computing

When it comes to cloud computing, it can seem like you’re constantly being bombarded by acronyms. Actually, IaaS, SaaS, and PaaS are useful distinctions that can help you run your e-commerce store more efficiently.

Cloud computing is all about allowing you to take care of the bits you’re good at and leaving the rest to professionals. Each business has different skill sets, so they’re going to use the cloud in different ways.

For example, in a bootstrapped business, the owner might be building the entire website with limited funds. In this case, they might only want to focus on the basics of creating a functional, appealing store and leave aspects such as runtime, servers, and storage to an external company.

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On the other hand, a big multinational business may have a host of developers and IT professionals capable of handling more complex functions.

IaaS, SaaS, PaaS, and Serverless Computing give businesses the flexibility to control different parts of the cloud.

IaaS

IaaS is the cloud-based alternative to maintaining on-site infrastructure. Whereas in the past, businesses would have had their own data centers. Today, it can be much more efficient to utilize the cloud.

Maintaining your own IT infrastructure can be costly, and most businesses don’t have the skills to do this without an external company’s help. With IaaS, businesses don’t need to maintain their infrastructure. Instead, they pay to use a third-party’s servers, networking technology, storage, and data center space.

For businesses running e-commerce sites, this means they don’t have to worry about the highly technical aspects of running a web application and they don’t have to invest in expensive infrastructure. Instead, they pay for access to infrastructure through the cloud through companies like AWS, IBM, and Rackspace.

IaaS provider Rackspace

While things like storage and networking are taken care of by the third party, this option still leaves you in charge of the following aspects:

  • applications
  • data
  • runtime
  • middleware
  • O/S

This is important for larger businesses because it gives them much more control over how they run their site, while still offering a scalable, cost-effective solution.

PaaS

Like IaaS, PaaS leaves key components such as physical compute, network, storage, and virtualization to the provider. However, with PaaS, you also outsource runtime, middleware, and O/S.

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As the name suggests, PaaS gives you the platform to develop, run, and manage applications without having to take care of the infrastructure behind it.

While this means you have less to worry about, and need fewer technical skills, it also means you have less control over how you run your e-commerce site than with IaaS.

Whichever service you choose, there is a tradeoff between convenience and control. With PaaS, you’re getting something of a middle ground between IaaS and SaaS. While much of the service is managed, you’re still in control of applications and data, which can be valuable for certain businesses.

This makes PaaS providers such as Magento Commerce Cloud and Bluehost particularly popular with developers, as it provides everything they need to create new applications without having to invest in expensive infrastructure and operating platforms.

Instead, they pay for what they need, allowing them to focus more on building the applications.

As an alternative to IaaS, PaaS providers such as Magento also offer ecommerce stores good options.

Serverless Computing

Businesses are constantly searching for the most efficient ways to use the cloud, and another option is serverless computing.

Serverless computing is very similar to PaaS, but has a few slight differences.

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One of the main differences between serverless computing and PaaS is that serverless is event-driven. You pay only for what you use, whereas with PaaS, you pay a monthly fee and have a limit to what you can use.

Serverless computing automatically scales with your business, but you’ll give up some control. It does allow you to be extremely flexible though, saving on costs while still getting excellent performance.

This is an ideal option for fast-growing e-commerce sites or those creating viral content that may cause a massive traffic spike.

SaaS

For many people, SaaS is the quickest and easiest way to set up an e-commerce store. Using providers like Shopify, you use third-party platforms and apps to quickly create a functional store.

SaaS alternative to IaaS - Shopify

Everything is taken care of for you, and all you need to do is upload your own products and create your marketing content.

The obvious benefit of this is convenience. Not everybody who wants to create an e-commerce store has IT expertise and SaaS means they don’t have to. Rather than focusing on networking and hosting, they simply have to focus on building out their website and creating the content that’s going to help them sell.

SaaS applications are very common across the internet. Not only are there lots of SaaS applications that help people run their e-commerce stores but software such as Microsoft 365, Google Cloud, and HubSpot are all examples of SaaS.

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The downside for e-commerce stores that run on SaaS is that they’re limited in what they can do. If you have a Shopify store, then you have to work within the limitations set by that third party. When you run your store through IaaS or PaaS, there are fewer limitations, giving you greater control over your store.

How Can IaaS Affect Your E-commerce Site?

Cloud computing has made it much more accessible to create an e-commerce site. No longer do you have to invest in expensive hardware and instead, you can pay for access to infrastructure as and when you need it.

This has opened up e-commerce to a wide variety of people. With SaaS, it’s not necessary to have IT skills to create a competitive store. However, with the ease of creating and managing a store through SaaS comes limitations.

Many businesses possess the skills to handle the more technical aspects of running an e-commerce site, and they want to be able to make the most of those skills without building their infrastructure. IaaS is the perfect option for these businesses as it allows them to strike a profitable balance.

These businesses can use infrastructure as and when they need it, scaling as their business grows and shrinks.

With IaaS, you have maximum control over your e-commerce store, allowing you to make the most of your creative and IT skills without building the infrastructure yourself.

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How to Use IaaS for Your E-commerce Company 

One of the most important things when choosing between IaaS, PaaS, and SaaS is understanding the skills and resources available to you. If you don’t have people with experience in building and developing web applications, then IaaS isn’t going to be the best option for you, and it might be better to look at a SaaS option.

If you’re confident you can create and maintain a high-level store through IaaS, then the next step is understanding your needs. There are lots of different IaaS providers out there, and many different packages to choose from.

Each business is different, and will have different requirements. When choosing a provider, consider the following questions:

  • What level of access and customization do you need?
  • How flexible can the provider be?
  • How will the provider deal with changing regulations?
  • How much is it going to cost you?
  • What level of security is offered?

The whole idea of “as a service” is that you pay for the parts you need, freeing you up to take care of the bits you can handle. To get the most out of this concept, you need to have a clear picture of where your skills lie, and how your provider can take care of the rest.

IaaS Tools

When choosing an IaaS package, you must take the time to get the one that best fits your business needs. There are lots of different options out there, and choosing the right tools can make all the difference to your business:

  • Amazon EC2
  • Google Compute Engine
  • Digital Ocean Droplets
  • Hostwinds
  • Alibaba Elastic Compute Service
  • IBM Cloud Private
  • IONOS Cloud
  • Azure Linux Virtual Machines
  • Rackspace Technology
  • Openstack

As you can see, there are lots of different options out there, and this is just a small sample. The important thing is making sure you get the services your business needs without paying for resources you don’t.

It might take a little extra research to unlock the true power of IaaS for your business, but it’s certainly worth it in the long run.

Conclusion

There are many different ways to run an e-commerce store, and how you use the cloud is a key consideration when setting up or expanding your store.

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Maintaining onsite infrastructure can be expensive and time-consuming, and with modern cloud products, there isn’t much need for it.

The bigger question is: what do you need from the cloud?

For large-scale e-commerce sites, with tons of resources at their disposal, infrastructure as a service is often the best way to go. This provides greater control over your site than PaaS or SaaS options and is a cost-effective way to scale your business.

When you utilize the cloud well, it can help you maximize your store’s profitability, so it’s essential to make the right choice.

How does your e-commerce store use the cloud?

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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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