Hey — It’s Nico.

This is Behind Tactics 🧠, the Failory newsletter where I share the strategies behind the best startups.

In this issue:

• Hypefury, a Twitter automation tool, gives users up to 95% discount after the trial period ends.

• This discount is only obtainable if you completed all of your onboarding tasks.

• Why this is a great way to increase user conversion and user satisfaction at the same time.

• How it helps users reach their A-ha moment.

Let’s get into it.

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The Strategy

Onboarding Incentives

When I first signed up for Hypefury, a Twitter automation tool, I was just looking to explore what the platform had to offer. However, what quickly grabbed my attention was the clever strategy Hypefury employed to convert trial users like me into paying customers.

During the trial period, Hypefury didn’t just leave me to figure things out alone. Instead, they guided me through a series of tasks designed to get me deeply engaged with their platform. The more I interacted with Hypefury, the more benefits I unlocked.

This approach was part of a broader strategy that Hypefury uses to incentivize users to engage heavily with the platform during the trial period, ultimately increasing the likelihood that they will subscribe after the trial ends.

On the second day after signing up, I received an email with a simple task: activate the Tweet Booster and Auto Retweeter. This wasn’t just a nudge to explore the features; it was a strategic move to make me experience the value of Hypefury firsthand.

By the time I got to day five, I received an email with the subject line: “🦅 Get a 95% discount on Hypefury.” The offer? A massive discount on my first month’s subscription, but only if I had been actively using the platform.

In a way, Hypefury has combined two onboarding strategies that are not uncommon on their own:

1. Guiding users through all the features of the tool.

2. Offering limited-time discounts after the trial period ends.

Each of these strategies serves a distinct purpose. The guided onboarding is designed to ensure that users fully understand and can utilize the platform's features, thereby increasing their likelihood of seeing value in the product.

On the other hand, the discounts are intended to boost the conversion rate by providing an extra push for users to subscribe after their trial period.

However, the beauty of Hypefury’s approach lies in how these two strategies are merged to complement and enhance each other. By offering a discount as a reward for engagement, Hypefury creates a strong incentive for trial users to invest time in actively exploring and testing the platform's features.

This ensures that fewer users skip the guidance, leading to a higher rate of users fully experiencing what the tool has to offer. In this way, the discount makes the onboarding guidance more effective, as users are more motivated to follow through with the tasks.

Conversely, tying the discount to the completion of the onboarding tasks makes the discount itself more impactful. If the discount were simply offered at the end of the trial without any conditions, a significant portion of users might not be inclined to take it, especially if they hadn’t fully engaged with the platform during the trial.

By linking the discount to active engagement, Hypefury ensures that those who receive the offer are already invested in the platform and more likely to convert to paying customers.

This synergistic approach not only enhances user engagement but also increases the overall effectiveness of both the onboarding process and the conversion strategy. Hypefury’s model shows that when properly combined, these strategies can drive deeper user involvement and higher conversion rates, making them more powerful than when used separately.

Should I?

Why This Works

• Facilitates the "A-ha" Moment: By guiding users through key features and encouraging regular use, Hypefury helps users quickly reach their "A-ha" moment—the point where they clearly see the value of the platform. Once users experience this moment of realization, they are far more likely to recognize the platform's benefits and feel compelled to subscribe.

• Builds Habitual Use: The strategy leverages habit formation by guiding users to use key features regularly. As users become accustomed to integrating Hypefury into their daily routine, they are more likely to continue using the platform beyond the trial period.

• Leverages FOMO: The discount is time-limited. The users who are already engaged with the platform do not want to lose such a massive discount, which encourages them to make a quick decision to subscribe.

• Reduces Acquisition Costs: The strategy likely significantly increases the rate of free users who become paid users. This means that each user acquired through other marketing strategies is more valuable and has a higher potential of sticking with the tool in the long run.

• Creates Positive Brand Association: The educational emails and guided tasks help users feel supported and valued, creating a positive association with the Hypefury brand. This positive experience can lead to higher customer satisfaction and increased word-of-mouth referrals.

How to Apply It

• Design a Guided Onboarding Experience: Create a series of emails or in-app prompts that guide users through the key features of your platform. This should happen at just the right time to gently lead users through key features without bombarding them, providing a smooth learning curve. This way, users will see how beneficial your product really is without any friction or effort on their part.

• Incentivize Specific Actions: Identify the actions within your platform that are most likely to lead users to an "A-ha" moment—such as setting up an essential feature or completing a core task—and offer incentives for completing these actions. The reward should be directly associated with meaningful engagement that showcases the value of the platform.

• Gamify: Introduce gamification to increase the overall trial appeal and fun. For example, you could create a point system where users earn points for completing tasks or exploring features, and these points can be redeemed for discounts or rewards. Gamification taps into users' natural desire for achievement and can make the trial period more enjoyable and motivating.

• Leverage Urgency and Exclusivity: Towards the end of the trial, create a sense of urgency by offering a time-limited discount or exclusive offer. This could be a special discount that is only available to trial users who have engaged with the platform. By emphasizing the limited nature of the offer, you encourage users to act quickly and commit to a subscription.

Yes, But

• High Risk of Engagement Fatigue: While walking users through a series of tasks may maximize engagement, it might also cause burnout. If users find too many prompts or tasks imposing and possibly overwhelming, they might altogether disengage from the experience, leading to a bad user experience and a low likelihood of conversion.

• Misaligned Incentives: Offering discounts based on usage could incentivize users to engage with the platform superficially, just to unlock the discount rather than genuinely exploring its value. This might lead to higher churn rates after the discount period ends, as these users may not be fully committed to the product.

• Discount Dependency: Relying on discounts to drive conversions can create an expectation among users that they’ll always receive a deal. This could make it difficult to convert users at full price later on, reducing the perceived value of your product and potentially harming long-term profitability.

• Complex Implementation: Implementing a usage-based reward system requires careful planning and execution. It involves tracking user behavior, setting up personalized triggers, and managing the delivery of incentives, which can be resource-intensive and technically challenging, especially for smaller teams or startups.

Keep Learning

Others Playing It

I have not found any other startup doing it this way.

Squarespace gives out discounts after the trial period has ended and reminds users why the joined the platform. But all users receive this discount.

Go Deeper

• This Behind Tactics on Reverse Trials, another great onboarding strategy.

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That’s all for this edition.

Cheers,

Nico