🎉 Conversion Party #41

Welcome to Conversion Party 2.0. I’m Allen. I came to Heatmap from Triple Whale. Yesterday, I learned what “stat power” is. According to Chase, this mean’s I’m qualified enough to write this newsletter.

(Don’t worry… Chase and Dylan will still contribute CRO wisdom each week)

Now, some housekeeping.

We’ve officially made the jump to Beehiiv. Why? Because twitter told me it was better than sending SaaS emails outta Klaviyo. The format looks a little different, too. Out with swaths of green that make even the thickest white type illegible. In with Morning Brew-inspired bentos. You’re welcome.

This week we’ve got…

• Heatmap update: We drove a truck around GROW NY

• CRO Deep Dive: Sunk cost fallacy can be your best friend

• How We Buy #8: Sign up here

• CRO Hack #445: Bet you can’t eat buy just one.

• Obligatory Roundup™️ : Random musings.

Let’s get into it

— Allen

HEATMAP UPDATE
We parked a truck outside Grow NY

Should we have gone to GROW? Probably. Did we forget when it was, panic, and send a truck to drive around the block all day instead? Oops.

If you wanna give the accompanying AI-generated punk jam a listen, it would make me extremely happy.

Shouts to Joe at On the Go for getting this activation off the ground on short notice. Best in the business.

CRO DEEP DIVE
Sunk cost fallacy can be your best friend

A lot of brands win big (most often in the health/wellness/consumables verticals) by not allowing customers to buy just one unit.

Higher AOV. Lower COGS ratio. No decrease in RPS.

At a minimum, same top-line, more contribution margin, more profit.

Why does this matter? It’s a way to get two things at once:

1. Customer commitment

2. Better cashflow/payback period on your ads

Why does it work so well for wellness, etc? The sunk cost fallacy.

As a brand, you can leverage the fact that a customer has bought from you to instill within them a habit. This drives a higher possibility of an immediate second purchase and/or higher AOV.

But it’s the better cashflow piece we really care about, right? 😎

Our front loaded LTV:CAC → your payback period is in a great place (hopefully) and you have free cash to go and acquire more customers at breakeven (or, dare I say, profitably).

Not all businesses can do this. BUT if you can, you’re doing yourself a disservice not having it as an option.

Do the math.

If 10-15% of your converters opted into this, what does that look like in free cash you can re-invest back into the business (or gasp - take a distribution).

Examples

Nutrafol

And Beam:

What’s working?

• These examples from Nutrafol & Beam ensure you can’t miss the pricing and the option to buy now.

  • What’s interesting though is how Nutrafol’s feels easier to consume with an upfront buy vs the expectation that I, as the consumer, want to subscribe upon first visit.

• Social proof above the buy box reminding the customer that they are buying something that has been vetted by professionals and customers just like you.

What could be better?

• The benefits were redundant. They take up too much space on the page, making the buy box bulkier than is necessary. This could get a prospect to stop paying attention or worse yet bounce entirely.

• Where you see pricing start vs the above the fold break points on the page. You want there to be some hint of what’s coming before they scroll down.

• There was no MOST POPULAR segmentation in Nutrafol → this can help draw the eye more quickly where there are many options to choose from.

Takeaways

• Social proof on a product page, paired with your pricing, can help customers move more quickly. Strategically position those little stars!

• Your buy box needs to be efficient with the space that it uses - don’t use redundant USP’s if you can find a more ergonomic way to you it on your page.

• Make sure you are mindful of how you draw the eye when there are multiple options to choose from.

CRO HACK
#445: Bet you can’t eat buy just one

MOSTLY RANDOM
Obligatory Roundup™️ 

• DTC twitter is so back.

• “How to Make a Few Billion Dollars” by Brad Jacobs had the group chat hummin’ last Sunday. I can’t wait for football season.

• Collab of the century: The Oregon Trail x …finance SaaS?

  • Actual collab of the century… Yotpo x Nike. “Get moving and win shoes” will go down as the highest converting CTA in history.

• Built this Piccalio Montessori Bookshelf over the weekend. Didn’t even use a TaskRabbit.

• Is this an ad?