What's New: Data-driven pricing tips

(from the latest issue of the Indie Hackers newsletter)

Running experiments driven by data can help you level up your business:

• Rank the idea based on the source of the data: A hunch (worst), expert opinion, case study, industry research, or your own customer data (best!).
• Build a high-converting funnel by publishing high-quality content, offering relevant lead magnets, and nurturing leads across their journey.
• From global exec to serial founder. Berkay Yavuz chased other people's definition of success until he learned to define it for himself.

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Data-Driven Pricing Tips 💰

by James Fleischmann

Sergey Kyune built a product to help him learn how to sing, and now it brings in $10K MRR. The key to his success? Measuring everything.

Running an experiment effectively

Here's my personal simplified interpretation on how to be data-driven and run experiments:

1. Define the problem you want to solve, and why it's important right now.

2. Explain how the work you are planning to do contributes to solving that problem.

3. Make a hypothesis statement: Why do you think the change is going to work? What data supports it?

4. Go deeper into your hypothesis. It should answer these questions: Once the change is implemented, how do you measure it? Which metrics matter? What is the exact change in the metric that will mean success? You have to decide that upfront.

5. Rank the idea based on the source of the data: A hunch (worst), expert opinion (weak), relevant case study (okay-ish), relevant industry research (good), or your own customer data (best!).

6. Choose your setup. Best case scenario, you can set up a split test. In this case, ensure you have enough traffic to get statistically significant results within a reasonable timeframe. The fallbacks are a time series post-analysis (testing one time period against another), or qualitative research methods like user surveys and interviews.

7. Implement the change.

8. Verify that your metrics are showing that your change is working as expected. The setup should be done in such a way that metrics can only be influenced by your actions. You don't want other factors affecting the experiment.

If you do all of this properly, analyzing the results should be fairly easy.

What you shouldn't measure

1. Measurements that are too costly: For example, they're slowing down the customer experience, or exposing the fact that you are running a split test to the end user.

2. Ethical and privacy-related concerns: I try not to collect PII unless I absolutely have to. Some people also think that running AB tests on pricing is unethical. In my opinion, it depends on the case.

3. Regulations: Governments also might have an opinion!

Data-driven pricing tips

• Offering a weekly membership plan works much better than any sort of free trial.

• Price sensitivity turns out to be a very relative thing. The price progression ladder, and the surrounding price context, create a better value-for-money perception.

• Running promotional campaigns offering discounted prices for events generates sales, but the kind of customers it brings are the worst: Complaints, refund requests, etc. I'm not sure it's worth dealing with.

• Most people don't fully read descriptions; their choices are mostly emotional and intuitive.

If you like singing, check out Singing Carrots!

Discuss this story.

In the News 📰

from the Growth Trends newsletter

😶‍🌫️ X users are still complaining about arbitrary shadowbanning.

💻 Customer GitHub tokens were exposed in a data breach.

💲 Link to your product here. Our most affordable ad.

🤖 Apple's AI ambitions could include Google or OpenAI.

✅ LinkedIn now allows brands to sponsor any organic post.

😊 How to give productive feedback.

Check out Growth Trends for more curated news items focused on user acquisition and new product ideas.

Building a High-Converting Sales Funnel 🛠

by Syed Balkhi

If you want to attract your target audience and turn them into loyal customers, you need a good sales funnel.

Four stages of sales funnels

• Awareness: This occurs when someone learns about your business for the first time, whether through social media, search, word-of-mouth, paid advertising, etc.

• Interest: Prospects now know you exist, and are curious about your product. At this stage, users like learning about a potential solution and comparing their options.

• Decision: The customer has decided they are ready to make a purchase. A small incentive is just the thing to get them to take action.

• Action: A customer moves to make a purchase. This is where good customer service teams and onboarding programs come in handy.

How to build a high-converting funnel

1. Publish high-quality content: Make sure your content aligns with your overall business goals, and what your target customers want. Be sure to discuss their pain points, interests, and questions.

2. Offer relevant lead magnets: Think of ways to add more value to the lives of your target audience in exchange for their contact information.

3. Nurture leads across their journey: Segment your list based on where each lead is in the funnel. For example, top-of-funnel prospects would benefit most from blog post roundups, free event invitations, and other resources. On the other hand, mid-funnel subscribers might appreciate a free trial, since trying your product risk-free could help them decide to purchase.

4. Optimize your landing pages: Focus on benefit-driven content. Instead of talking up all the features your product offers, center your audience. Show them how they can benefit from what your product can do.

5. Use retargeting to secure lost sales: Retargeting allows you to reconnect with people who have visited your site, but left without buying anything. Setting up a retargeting strategy is easier than you might think. You just need to add a small bit of code to your site that tracks visitors. Then, the retargeting service will show your ads to those visitors who browse other sites. The key is to use compelling ads that remind people why they were interested in the first place.

6. Listen to feedback: Pay attention to what people are saying to you and about you.

Final thoughts

There's a lot of information here, so start with one or two tips, then branch out to add more. Before you know it, you'll have a high-converting sales funnel that allows you to educate and nurture subscribers, and eventually turn them into happy customers!

Discuss this story.

🔥 Landing Page Hot Tips

by Rob Hope

Strengthen your landing page with these design, development, and conversion tips!

Replace your demo GIFs with video. Video offers:

💪 Better performance.

🎨 More colors.

🍃 Less file size.

👆 Ability to pause.

Subscribe to Rob's One Page Love newsletter for his favorite UI, design, and development finds.

From Executive to Founder 💼

by Berkay Yavuz

Society often paints a clear path to success: Landing a prestigious job, earning a good salary, and checking off certain milestones of achievement.

But after starting my career at a global giant, I realized that the corporate ladder wasn't where I felt most alive.

From cubicle to corner office

Fresh out of university in 2008, joining Unilever as an assistant brand manager seemed like fulfilling a dream. Back then, tech giants like Google and Facebook were just emerging in Turkey.

Working at a well-known giant in fast-moving consumer goods (FMCG) held enormous appeal. The early years were filled with invaluable lessons in traditional marketing.

But after four fulfilling years, the digital landscape began to explode. My desire to build something of my own became undeniable. I even got encouragement from Unilever's supportive leadership.

The startup itch

I launched my first startup venture in 2012, a delivery service for FMCG products. It proved to be ahead of its time, but it revealed something crucial to me: I yearned to disrupt, and create solutions that filled the gaps I saw in the market myself.

At this point, I took a new full-time job at L'Oreal, as it offered greater financial security and the prestige of a global brand. It was a valuable experience, but it couldn't extinguish my entrepreneurial desires.

From Texas to Turkey

A chance meeting with a founder from Texas proved to be a turning point for me. I worked with him to help establish his businesses in Turkey, and I gained invaluable insights in the process.

My second venture was a fintech platform for rentals. I immediately faced the challenges of navigating regulatory complexities and chasing funding. This wasn't easy, but it made me more adaptable and resilient.

My top learnings

• Define success for yourself. Don't let others define it for you.

• Find the idea that actually makes you happy to work.

• Find good people to work with, those who also share your passion.

• Find happiness in the small wins.

• Prioritize building community.

• Don't be shy; let the world know what you're building!

Currently, I'm focused on building Adsby, an AI tool to help businesses with their marketing efforts!

Discuss this story.

The Tweetmaster's Pick 🐦

by Tweetmaster Flex

I post the tweets indie hackers share the most. Here's today's pick:

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Forward it to a friend, and let them know they can subscribe here.

Also, you can submit a section for us to include in a future newsletter.

Special thanks to Jay Avery for editing this issue, to Gabriella Federico for the illustrations, and to James Fleischmann, Darko, Syed Balkhi, Rob Hope, and Berkay Yavuz for contributing posts. —Channing