The Habit Funnel ??

15th January 2023: Newsletter Edition Three

When I started this newsletter last month, I promised to share everything we do at PitchGround and Firstsales.io.

Strategies we use to drive traffic, sales, conversions, and everything without any paywall just because of the love you guys show in exchange for supporting us.

Today, I will share an interesting funnel we launched last month that’s been doing extremely well.

I’m calling it “The Habit Funnel.”

Never heard of it? Now you do because?I just coined this term. After all, it’s an interesting psychological concept of marketing and building habits.

What’s a Habit?

In simpler terms, it means something you do every day, becoming part of your routine. For example, sleeping at a certain time, waking up at a certain time, having a certain kind of breakfast at a certain time each day, brushing your teeth every day, going out to movies over weekends, and more.

How can brands replicate this human behavior and implement it inside their Funnel?

Today, we will explain how we created a new Habit Funnel to win trust, win our users, and make a habit.

The newsletter is divided into two parts, and today, I am releasing part one of the Habit Funnel.

User Reasoning:

People don’t buy from you for ONE reason - They don’t trust you. There is no other reason.

This could be because of a lack of brand awareness, lack of branding; you have no reviews, etc.

Your next immediate question will be, how do I build this “trust”?

Good question.

..I will break this down into two sections:

• How to formulate your content (This will be the next newsletter)
• How to develop the Habit Funnel

User Understanding:

The number one reason why most startups fail is that they have zero understanding of their user.

I am a big advocate of ICP - Ideal Customer Profile.

I even made a video for the same; you can watch the video below to understand better.

This critical video will help you grow faster, so pause reading and start watching. Also, please do not fail to subscribe to my channel; I will release a new video about my AI content process this upcoming week.

https://www.youtube.com/watch?v=iXJ1tZsrNs0

Now that you have completed the video (I hope you do, genuinely), let’s move forward to learn further.

Building Your First Habit Funnel:

Now that you understand your ICP, it’s time to know how to replicate the Habit inside your brand to build the first layer of trust and drive sales automatically simultaneously.

In this Funnel, I am using Facebook Ads to create the first layer of Habit and trust.

We all know the strategies for using Freebies.

..but the problem is we often end up using a different platform or UI/UX experience for such freebies.

Example: You are selling freebies on platform one with a different design and experience while selling your product on another platform and giving a different experience.

Building habit is doing the same thing repeatedly; this means the same UI/UX and process.

Last month, we built our first “Habit Funnel” which did wonders for us.

On 25th December, we launched our first Habit Funnel.

We spent roughly $2,300 in the last 20 days on this Funnel and have brought our cost of action of a customer down by approximately 27%, generally around $50 to $36.

This has netted us 2.63x ROAS.

You will probably say, Udit, this is normal; what’s so special about this Funnel?

Let’s come to more interesting data.

Last year, Facebook defaulted all the attribution windows to 7 days of click.

This means that the ROAS that you see is for seven days.

Also, December end to January mid is the worst time to run ads if you sell software because, generally, only a few buy the software.

This is brilliant because spending $2306.05 during the non-peak year can generate $6,069.47.

This ROAS means we are profitable with our ads after paying our vendors and spending on ads, effectively making our Cost of Action of a Customer 0 + tiny profits on top of that, which can be reinvested back into scaling this Funnel.

(This is just one such campaign, we are running other campaigns too, but those are a different kind of ad funnel, this newsletter focuses on this trust funnel exclusively)

..but here comes the fun part:

That’s 1130 + 338 = 1468 new leads generated as well. All of them checked out with our freebie (we don’t send the $0 signal back to Facebook Ads to avoid screwing up our Look like the audience).

Effectively, a spend of $2306.05 helped us generate 1468 leads and $6,069.47.

Now, we have a separate email funnel for such users, which I will mostly cover in future newsletters. Of these 1468 users, roughly 21% have already purchased outside the seven days window.

That’s roughly 306 customers with an average cart value of $76, effectively generating $23,256 in revenue.

That’s just over 1000% or 10x return on our ad spending.

We still have users in our Funnel who have yet to purchase from that Funnel; we will upsell more high-quality products at PitchGround to the same users.

We plan to 5x our spending to test this Funnel's scalability, and we hope to achieve at least 50-70% of the results we achieved at this small scale.

Why is this strategy so successful? Because we are asking users to get this FREEBIE and making them build a habit without any commitment but a huge amount of value in return.

This Funnel will only work if you have a top-quality product, spend over $2000, and have a convincing ad copy.

I am happy to create more in-depth around this, but I need your help; please share this post on social media. If we get over 500+ shares of this post, I will create a video with more depth.

But I hope you found today’s edition helpful and give a new food for thought strategy to drive your Habit Funnel using ads to go beyond a typical 2-3x ROAS campaign and do 10x campaigns in just a month’s time.

Let me know your thoughts or questions in the comment below.