The #6 edition of 8percent.
Your weekly growth and product upskill, in 8 minutes.
Here’s what we have for you this week.
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Growth
💻 Tools: Fake faces and Real clips.
🧠 Persuasion: Even if.
📰 Article: Hidden Freemium Pricing Effects.
🤖 Automation: Zapier x ChatGPT: 19 automations.
Product
💻 Tools: Your new “stay up-to-date” routine.
🧠 Persuasion: Don’t stop the music.
📰 Article: hacking Product Growth with Sean.
💰 My 2 cents: Product-Led Sales, let’s dig.
Growth.
Tools 👇
ThisPersonDoesNotExist → Create fake faces for any purpose. (free)
The simplest tool ever, just refresh the page, until you find what you like.
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OpusClip → Upload any video, and get 20 clips. (free trial)
The relevance of the clips, the subs, etc… will amaze you.
Best AI-powered tool in this market, really.
Persuasion Technique 👇
“Sounds good, but it wouldn’t work for me.”
Even if technique: Addressing people’s objections before they have time to think about them. 🧠
Example: The marketing automation platform that grows your business…even if you don’t know how to code.
Article 👇
Listen to Elena, she knows better.
The Hidden Freemium Pricing Effects on Growth.
This article is quite extensive, let us give you the big lines.
Changing Perspectives on Freemium Models: Initially, freemium models were valued if they could generate enough paid users to offset the cost of the free product. However, this view is outdated, and the indirect monetization value of freemium models has gained significance.
Market Shifts Altering Freemium Evaluation:
Shift in User Expectations: Users now prefer experiencing product value without sales interaction.
Rise in Self-Serve Purchase Price Points: Customers are more comfortable making high-value purchases without sales contact.
Usage as a Key Purchase Criterion: Usage data is increasingly important in B2B purchasing decisions.
Challenges in Acquisition and Retention: Increased competition and market saturation make user acquisition and retention more difficult.
The Inadequacy of Free Trials: Fixed-time free trials often fail to accommodate diverse user needs and timelines, especially for larger potential customers.
Advantages of Freemium Products:
Pressure on Product to Drive Monetization: Freemium models shift the focus to the product's ability to communicate its value.
Building User Habits: Freemium allows users to develop a habit around the product, leading to better retention and higher lifetime value.
Accelerating Growth Loops: Freemium models can enable and boost product-led growth loops.
Lower Customer Acquisition Costs (CAC): Early acquisition of users can be more cost-effective.
Enhanced Product Insights: A larger user base provides more data for product optimization and understanding user behavior.
The Six Indirect Growth Effects of Freemium:
Higher Willingness to Pay: Better product understanding increases the perceived value.
Increased Network Effects: A larger user base enhances the product's value proposition.
Stronger User Habits: Habit formation before payment leads to higher retention.
Growth Loop Acceleration: Freemium models can effectively drive growth loops.
Earlier Customer Acquisition: Acquiring users early can reduce future acquisition costs.
Better Product Insights: A broader user base offers more data for product development and optimization.
Conclusion: The article emphasizes the need for a nuanced understanding of freemium models, beyond just direct monetization. In the current competitive landscape, not leveraging a freemium model might result in missed opportunities and potential disruption.
Here is the article, read it!
Automation 👇
Let’s see bigger this week.
Zapier x ChatGPT: 19 automation.
Product.
Tool 👇
Recall → A new tool to summarize and organize online content. (free trial)
Instead of keeping all of these tabs open (we feel you..) you can now use this AI to summarize all types of content. Webpages, PDFs, YouTube videos, or podcasts…just one click on the Chrome extension and voilà!
You add some tags, and the content is now organized in a library just for you.
Faircado → Find the best pre-owned, second-hand, or refurbished alternatives while shopping. (free)
This year, for Christmas, we would like to buy more responsibly.
So this tool is not related to Product, but it’s a great tip, and we wanted to share it with you.
It’s also a Chrome extension, and it’s free.
Persuasion Technique👇
If you’ve watched the 2022 series from Netflix, “The Playlist” you surely remember they were chasing a response time under 200ms to stream a song (in 2006..).
Why this obsession?
It’s based on a principle: shorter response times keep users engaged and focused, while longer delays can lead to frustration and loss of interest.
Doherty Threshold - “Productivity soars when a computer and its users interact at a pace (<400ms) that ensures that neither has to wait on the other.” 🧠
Let’s find a tool to help you with that in the #4 edition 👀.
Article 👇
When Sean Ellis (founder of Qualaroo and Growth Hackers, a former Growth VP at Bounce, the author of the bestseller Hacking Growth, and a lecturer at Harvard Business School) talks about product and growth, we better take 28 minutes and listen.
This video is packed with a lot of information; let us give you the big lines.
Sean Ellis emphasizes hacking product growth in 2023 by focusing on creating a 'must-have' user experience and employing a rapid iterative experimentation process across all stages of the product funnel, with a particular emphasis on user activation.
Focus on 'Must-Have' Experience: Prioritize creating an experience that hooks users and makes them return to the product.
👉 Through the Sean Ellis test, aka the PMF test (we’ll talk about this next week).Prioritize Activation: Activation has the most significant impact on growth, followed by retention, revenue, referral, and acquisition.
👉 When you lead them to the critical feature and help them realize its value.The Aha! moment: Lead users to this 'must-have' experience, identifying and optimizing the product's Aha! moment.
👉 For Slack, the Aha! moment comes after the user sends about 2000 messages, for Facebook connecting with seven friends in 10 days and for Uber, the 1st drive.
Rapid Iterative Experimentation: Employ a growth hacking process to improve product value delivery.
👉 Four steps: Analyze, Generate ideas, Prioritize, Test.North Star Metric: Choose a key metric that guides efforts and measures progress for all the teams. This is how you measure growth.
👉 For Slack and Facebook, it’s the daily active users, and for Amplitude, weekly learning users.
Diagram the Growth Engine: diagram the growth engine in your business to decide how you will improve the North Star metric.
👉 Bring together all the key stakeholders.
Choose the Right Tools: Choose tools to support the process.
👉 User behavior tracking, surveying, A/B testing …
You can find many great deals in the #4 edition 👀.
Here is the full video. Watch it!
My 2 cents 👇
We talked about Product-Led Sales last week. If you want to dig into this approach, the best way is to listen to this discussion between Elena Verna and Lenny Rachitsky.
So far, it’s the most exciting content we’ve found on this topic.
You will learn about the basics we've already introduced last week.
But also:
When and how to consider investing in Product-Led Sales
The metrics for identifying qualified accounts
The team, data, and tooling required for implementing Product-Led Sales
Common pitfalls to avoid when adding Product-Led Sales
Let us know what you thought about it.
We’ll see you next week.