Issue 011: The 9-Box Method 📊

We also talk about increasing repeat orders by 265%, building a million-dollar brand with a simple product and doubling customers with a simple hack.

November 27, 2024 | #011 | Free Version

Hi friends and happy Wednesday!

Welcome to Startup Blitz, a weekly newsletter full of timeless ideas and insights you can use in your online business.

This week, we discuss –

🛍️ How an eCommerce company doubles their customer with a simple hack

💧 How to build a million-dollar business with a simple product

🚀 How a supplement company increased repeat orders by 265%

💰 The 9-box pricing method to maximize profits

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How Rejuvia Doubles Customers with a Simple Word-of-Mouth Hack‼️

92% of consumers trust recommendations from friends and family over any kind of advertising. This makes word-of-mouth marketing incredibly powerful.

Rejuvia Medical discovered a clever way to tap into this trust. And it’s been a huge success for them.

🎁 Here’s what they do: when a customer orders one product, they sometimes send two. Then, they ask the customer to share the extra product with a friend who might enjoy it.

The results are impressive. For every two double orders they send, they gain nearly one new customer. Specifically, each double product lead to 0.45 new customers.

You don’t need a physical product to give this strategy a try.

For example, if you sell a subscription service, you can offer something like a coupon for free three months. It can be a simple way to grow through genuine recommendations. 🚀

Lesson From Liquid Death: Why Your Product Doesn’t Matter 💧

Water is the most basic product imaginable. Yet some brands turn it into a billion-dollar business by selling water at a premium.

Liquid Death is a standout example. They sell canned water with an over-the-top, heavy-metal-inspired brand identity.

They have managed to build incredible customer loyalty.

🏆 Liquid Death doesn’t compete on product. They compete on brand.

CEO Mike Cessario explains in an interview:

“Your brand might be differentiated because you have this ingredient in it and nobody has it. Yeah, that can be a differentiated thing for a few moments, but the minute you have any success, any other brand can put the same ingredient in there.

“You can’t own an ingredient.

“That’s why with Liquid Death we always focused on brand. Even though we’re water in a can, people were like, “Why don’t you guys talk about why aluminium is infinitely recyclable and ‘death to plastic.’ That’s what you should be talking about. Not the funny, heavy metal stuff.”

“But we can’t own aluminium cans. So if I spend all my marketing dollars telling people “aluminium is infinitely recyclable,” and there are four other canned water brands, I’m just telling people why my competitors are good.”

💻 Digital products are no different. Your features and products will get copied. So build a brand that’s distinct and memorable. Have customers choose you not for what you offer, but for who you are.

How a Supplement Company Increased Repeat Orders by 265% 🛍️

Companies generally spend 12–14% of their revenue on marketing. For tech companies, that increases to 22%.

📉 But here’s the problem: Most people who make a purchase never come back. For all your money and effort, 7 out of 10 eCommerce customers never return after their first purchase.

This is why you need a loyalty program. Loyal customers keep coming back, spend more, and drive higher profits. 💸

There are many types of loyalty programs.

Retailers like Tesco, Marks & Spencer, and Walgreens give shoppers cards and apps and offer members coupons, discounts, and cashback.

Amazon Prime rewards members with fast shipping, discounts, and access to music and video streaming.

🖥️ If you run an online business, your loyalty program doesn’t have to be complicated.

I will share one example:

Shop 4 Vitamins is a health supplement store. They launched a loyalty program for their top 10% of customers. The reward? 10-15% cashback on every purchase.

The result was far beyond their expectations. Repeat orders increased by 265%, jumping from $21,441 to nearly $57,000. 📈

💡 Here are a few ideas to start your own loyalty program:

Point-based programs: Customers earn points for every purchase and redeem them for discounts, free products, or exclusive content.

Tiered programs: Divide customers into levels based on spending. Higher tiers offer bigger rewards.

Engagement rewards: Offer points for actions like signing up for your email list, following you on social media, or leaving reviews.

📖 Book of the Week: The 9-box Method of Pricing for Projects

In his book “You Are The Brand“, author Mike Kim shares how to build a highly profitable business around your personal brand.

💡 One of the most valuable tactics he shares is the 9-box pricing method for projects. It helps you decide what to charge clients while maximizing profit.

To start, create a 3×3 grid.

🏆 Label the left side Good, Better, and Best. These represent the levels of service you’ll offer. This isn’t about work quality. It’s about how involved you are and how much value the client will get.

💰 Label the top Least, Regular, and Windfall to represent what you’ll charge for each service level.

The Least amount is the lowest you would accept for a project. Anything lower isn’t worth it.
The Regular amount is your comfortable standard price. This is what you feel comfortable charging most clients.
The Windfall amount is an exciting, almost uncomfortable price that would make you extremely happy.

This 9-Box Method forces you to evaluate and clarify what your Good, Better, and Best offers entail. Each project you consider may be different. So use a separate 9-Box grid on every single project.

Start by setting your baseline “least” amount. Then fill in the rest of the boxes appropriately.

Once you draw up these numbers, you can decide which numbers you will put in the proposal. You can also present all three options and give your prospect a choice. 📝

This method gives you flexibility in pricing. You don’t have to charge every client the same amount for the same level of service. For high-maintenance clients (the kind who emails and calls you at all times of the day, nonstop) you can charge a Windfall amount to make the extra effort worthwhile.

The 9-Box Method helps you avoid underpricing. It ensures you’ll never find yourself delivering “best-level” service for “least-level” pay. 🛡️

Interesting Articles We've Read This Week

💼 It’s not just B2C vs B2B anymore. You need to create a B2Many business.

📢 3 Viral Loops to boost growth (+ 9 real-life examples)

🛠️ What bootstrapped hardware company founder learned from his first exit

📊 Half of your “successful” A/B tests are false-positives. Here is how you can fix it.

😊 Want to be happier? Practice gratitude.

Thanks for reading, until next week!

Sayed Bin Habib

Co-Founder, Startup Blitz

Follow me on LinkedIn / Website

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