Issue 015: How to Increase Sales by Apologising, How a 10-second Change Boosted Signups by 5.4% and More

We also talk about how to acquire customers without spending any money, the biggest myth that holds entrepreneurs back, and Mintzberg’s managerial roles.

December 25, 2024 | #015 | Free Version

Hi friend 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 a simple photo change boosted signups by 5.4%

🎓 How to increase sales by apologising

🪙 How to acquire customers without spending any money

🔗 The biggest myth that holds entrepreneurs back

👨‍🎓 MBA concept of the week: Mintzberg’s managerial roles

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How a Small Change Boosted Signups by 5.4% 📈

Brian Dean was the founder of the renowned SEO blog Backlinko. On its homepage, Dean had a banner encouraging visitors to subscribe to his newsletter. The banner included a picture of him with crossed arms.

Acting on advice from a friend, he decided to A/B test the photo. For 50% of visitors, he replaced the picture with a new photo where his arms were uncrossed.

Over the course of 90 days, 237,797 people visited his website. Remarkably, the version with the open-arm photo brought in 5.4% more subscribers.

Why such a big difference from such a tiny change?

Research shows that an open body makes people look more open-minded. They appear more approachable and trustworthy. Crossed arms, on the other hand, signal defensiveness or closed-mindedness.

This is true in photographs and in real life.

So whether it’s your profile picture, website image, or in-person interactions, maintain an open posture. This can make it easier to convince people of your idea.

🎓 Scientific Research: Apologise for Trivial Mistakes to Increase Customer Trust and Drive Sales

Discounts and free shipping have long been staples of marketing. But with customers’ inboxes overflowing with promotional emails, these offers are becoming less effective.

People no longer see them as genuine offers. They dismiss them as transparent attempts to extract money.

In response, some companies are trying something different.

They are apologizing for trivial mistakes via email. These apologies are accompanied by offers such as free shipping or discounts. They are sent to customers who might never have noticed the so-called “mistake.”

Here’s an example of this approach:

‘‘Oops! You may have accidentally received a copy of yesterday’s email this morning. […] The offer below will be extended through today with our apologies for the confusion.”

🔬 According to a recent scientific study, pairing an incentive with an apology for a trivial mistake makes customers more receptive. They become more likely to respond positively to offers.

Researchers ran four lab and online experiments and found that:

– Apologizing for a trivial mistake outperforms traditional offer emails.

– People view these apologies as genuine rather than just sales tactics.

– These apologies enhance how customers view the company.

– Importantly, these small apologies don’t hurt the company’s competency reputation.

🧠 Why Does This Work?

– When companies own up to minor mistakes, they appear more human and caring. It signals that they prioritize the customer’s experience and are willing to admit faults.

– Customers see the follow-up offer as a sincere effort. Not just another sales gimmick.

✨ How to Apply This Insight

I am going to share some real-life examples to give you some ideas.

– John Smedley is an international luxury knitwear brand. They apologized for technical website issues that may have slowed down order placement.

– Artifact Uprising is a custom photo gift company. They sent an email to apologize for a less-than-perfect online browsing experience, without providing any further details.

✋ Careful: Only issue an apology for a mistake that is perceived to be trivial. A non-trivial mistake might require more than a simple apology.

The Dream 100 Method for Acquiring Customers Without Spending a Dime 🪙

How do you get customers for your new startup when you have no marketing budget or social following?

According to Jonathan Courtney, CEO of AJ&Smart, the Dream 100 method is the answer. This strategy has helped him generate millions. And it’s really simple.

Let’s break this method down with a real example.

Imagine you’re starting a web design agency. You want to work with startup founders. You are starting it tomorrow. You have no social media presence and no money for ads.

Start by making a list of 100 people who already have access to your target audience. Since you want to work with startup founders, look for influencers, bloggers, and podcasters who advise entrepreneurs.

Think of anyone else who has an audience of people who might at some point want to have a website.

Create an Excel sheet. List their names, websites, social media handles, email addresses and approximate audience size.

Now comes the crucial part. You have to find a way to get in front of their audience.

The easiest way is to offer them money to promote you. But since you have no budget, you have to find another way to offer them value.

Think about what you can offer that benefits them while giving you exposure. Here are some examples of things you can offer as an experienced web designer:

Host a workshop for their audience where you offer a free lesson
Be a guest on their podcast and offer your unique expertise
Give them content they can use as a free bonus for customers who buy their products
Offer their customers an exclusive deal on your product
Be a speaker at a conference they organize

When you are reaching out to them, don’t ask for favours directly. Focus on how you can provide them value.

You don’t have to find exactly 100 people. The research process itself can help you find innovative ways to connect with your target audience.

📖 Book of the Week: No B.S. Guide to Succeeding in Business by Breaking All the Rules

In this book, author Dan Kennedy debunks some common success myths and shows how to think and act like a true entrepreneur.

One myth he debunks is the need for money when starting a new business. He calls it an excuse that holds entrepreneurs back.

“I suspect more people give up on their entrepreneurial dreams and ideas because of lack of money than any other reason. I don’t have the money to do it. I don’t know anybody who does. I can’t get the money. Nuts.

“There ARE plenty of experts who will run you through the conventional build-a-business-plan process, forecast two to five years without profit, budget for all manner of equipment and overhead, and calculate that you need somewhere between a zillion and two zillion dollars to start your business.

“Yet the ranks of entrepreneur-millionaires are chock-full of people who ignored all that, started with next to no money, and somehow clawed and finagled their way to the top.

“I have long taught: If you can’t make money without money, you won’t make money with money either. And if you’re going to back somebody, pick an entrepreneur who has proven he can survive without adequate capital.

“It’s easy to forget that Walt and Roy Disney were broke when they opened Disneyland, Apple was started by two punks in a garage, and Bezos packed boxes of books and schlepped them to the post office himself. These days, the lure of seed capital and multiple rounds of financing from Wall Street or Silicon Valley is enormously seductive. People prefer getting started with a lot of money, but not only isn’t that always possible, it’s not necessarily best.”

“Nolan Bushnell, who co-founded Atari, the electronic game company forerunner of today’s giant computer game industry, with $500 and sold it to Warner four years later for $28 million, said that success boils down to just one critical action step: “getting off your ass and doing something.”

Technology Makes It Easier Than Ever to Start Businesses with Very Little Money

“The barriers to entry have fallen. Countless successful companies start via Facebook, Instagram, TikTok, YouTube, Amazon stores, eBay, Etsy. Companies like GoDaddy make the setup of your first online shop easy. Companies like ClickFunnels template the online bridges from advertising and publicity to marketing to selling.

“I have a client right now who started a new online business fueled only by free SEO, YouTube videos made from home, and webinars conducted from home. It did $2.3 million its first 12 months, is on pace to double that during its second year, and already has people interested in acquiring it for $8 million. There is NOTHING he’s done that anybody couldn’t do, beginning with almost no money.”

👨‍🎓 MBA Concept of the Week: Mintzberg’s Managerial Roles

What do managers actually do all day? Henry Mintzberg, a renowned management theorist, studied the day-to-day work habits of chief executive officers.

By shadowing CEOs, and monitoring how they actually spent their time, Mintzberg showed that managers do three types of work:

Interpersonal work
Informational work
Decisional work

By understanding the nature of these different roles, you can become more effective as a manager.

Within these three areas, Mintzberg outlined 10 specific roles managers perform during their day-to-day working lives.

1. Interpersonal Roles

These roles involve interacting with others to get the most out of them. Within this category, managers undertake three primary roles:

Figurehead: Managers serve as symbolic leaders. They sign legal documents, attend important events, and represent the organisation at official functions.
Leader: Managers set expectations, influence and motivate people, and provide feedback and support.
Liaison: Managers establish and maintain relationships with external stakeholders, such as vendors, and industry peers.

2. Informational Roles

These roles involve collecting, processing, and transmitting information. The primary roles in this category:

Monitor: Managers stay informed about industry trends and competitors by reading trade press & reports and attending seminars & trainings.
Disseminator: Managers share decisions and relevant information with team members so that everyone possesses the essential knowledge required for their roles.
Spokesperson: Managers engage with the media, government entities and the public, and participate in conferences to communicate company goals and actions.

3. Decisional Roles

These roles involve doing deals, allocating resources and making tough choices. The primary roles in this category:

Entrepreneur: Managers identify opportunities for growth and implement innovative strategies.
Disturbance Handler: Managers resolve conflicts between subordinates, deal with unexpected situations, and develop contingency plans.
Resource Allocator: Managers set priorities and decide how best to use the company’s money, time and materials.
Negotiator: Managers direct negotiations, whether internally, with employees or departments, or externally, with other stakeholders.

How to Apply This

As a manager, you don’t need to do all these things all the time. Depending on the job, some roles will be far more important than others. However, the most effective leaders can tailor their behaviour to what is required in the circumstances. So you need to be skilful in all of these areas.

To figure out what you need to work on, rate yourself on each role. Use a scale of 1 to 5. 5 is “very skilled”, and 1 is “not skilled” at all. This will help you identify areas for growth.

Another thing you should do – For one week, track how much time you spend on each type of role. Many managers spend surprisingly little time on interpersonal tasks. Especially supporting and motivating their team.

Just increasing your focus in this area can significantly boost your effectiveness as a manager.

Thanks for reading. Wishing you success in your business journey.

Sayed Bin Habib

Co-Founder, Startup Blitz

Follow me on LinkedIn / Website

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