Case Study #2: How I'd position and grow Wagpt
Created by Denizcan Sanlav
Introduction:
Case study’s purpose:
This case study presents hypotheses on how to increase the revenue and conversion rate of the Wagpt product.
The hypotheses in this case study offer a framework for product positioning, landing page copywriting/messaging, and pricing strategies.
Case study’s format:
With this case study, you will learn how to market your products. Each section is interconnected, and reading them in order will be more beneficial.
Here are the frameworks we will discuss in the hypothesis I call the “irrational model”:
- – Creating a non-competitive niche
- – Understanding what your customers want and creating emotional resonance in landing page
- – Convincing potential customers to buy using cognitive biases
- – Designing irrational pricing
I work on product, marketing, and behavioral psychology. In the idea phase, I see the whole process from beginning to end.
I even imagine how the product will be marketed and its landing page design. I believe it’s not logical to create a product that cannot be marketed or doesn’t solve any problems.
Things like product positioning, target audience, unique value, pricing models, and landing page marketing dictate how the product should be.
Now I will do this for Wagpt.
What is Wagpt?
Wagpt is a product that enables the use of Chatgpt on Whatsapp. It allows you to chat and receive replies as if you were talking to anyone on Whatsapp.
Here is a great product.
From the product idea to the final it looks pretty good.
Chatgpt has become popular
Whatsapp is already a product that everyone uses.
Combining them is great.
And to offer it at a reasonable price of $9.
These 3 key elements should make Wagpt become very popular.
A great combination.
But; we have seen that even more specific products developed using Chatgpt have reached MRRs of $3k-10k. However, despite being more user-friendly and appealing to the masses, Wagpt falls well below these MRR figures.
Wagpt is convenient and reasonably priced for personal use.
It’s not a B2B product. No process is required to receive the product. It does not require approval from decision makers.
In other words, people are less likely to act strategically and postpone it until later.
With this reasonable price, they should want to try it right away.
It seems that Wagpt is leaving money on the table.
This great product deserves much more. And it still has great opportunities.
Let’s take a look at Wagpt’s positioning, landing page and pricing.
In addition, there are great opportunities for growth.
Let’s get started.
1. Wagpt’s positioning:
Currently, Wagpt seems to appeal to a general audience without a specific positioning strategy in place. While this could be reasonable as first step, it can cause problems with landing pages, copywriting, and messaging due to the lack of a clear positioning.
When looking at the landing page, there is no mention of a concrete problem, solution, or benefit. Also, it is unclear who would use Wagpt and for what purpose.
“If you chase two rabbits, you will not catch either one”
And it seems a bit like that.
Wagpt can be positioned for many different niches.
1. Language learning: “Learn a New Language with Wagpt: Your Personalized Language Teacher on WhatsApp”
2. Mental health: “Find Support Anytime, Anywhere with Wagpt: ChatGPT on WhatsApp for Your Mental Health Needs”
3. Personal assistant: “Get More Done with Wagpt: Your Personal Assistant on WhatsApp with ChatGPT”
We can position Wagpt for many more different niches. However, positioning it for each of these three different niches would mean focusing on different problems and solutions, each of which would create entirely different benefits. For example, for language learning, Wagpt could compete with Cambly. For mental health, Wagpt could eliminate the need for a psychologist. For personal assistance, Wagpt could eliminate the need for a personal assistant.
Positioning for each niche would uncover vastly different benefits.
Moreover, instead of positioning this product for the niches we want, we could turn each into a different use case. I would prefer to do this.
For each different use case, I would design a different landing page and market it as if they were different products.
Unique Value Proposition for Wagpt
Let’s look at what Wagpt does well and find its unique value proposition, as the landing page feels quite inadequate. To build a good landing page, we need to focus on its unique value proposition.
What does Wagpt do better than its competitors? Let’s take Chatgpy as a competitor. As someone who has tried both products, I observe the following:
– Wagpt is used on WhatsApp, which means it has a more familiar interface and is easier to use for users.
– Using it on WhatsApp means faster access than Chatgpt.
– And the most key difference is that I can’t use voice prompts with Chatgpt, but I can with Wagpt.
Of the three unique value propositions I’ve observed, I think the most effective one is voice messaging. (This may vary for each user.)
This is actually partly highlighted.
But it would be great to go into more detail and support this most key benefit with visuals.
Therefore, building the backbone of the landing page on the unique value proposition of voice prompts may be more reasonable.
Growth for Wagpt
Create habits in current users
How is the value of a product determined?
MRR?
Revenue?
etc.?
No. We’re in an time where data is valuable. What really determines the value of a product is how often people come back to use your product.
Using a product once a month?
Using it 20 times every day?
This is what makes a product valuable. Habit-forming products.
Info: BJ Fogg is the person who developed the framework I discussed in the behavior model section. Did you know that the founders of Pinterest and Instagram took BJ Fogg's behavior design class at Harvard in 2009? Products reaching these days and creating habits in users should not be a coincidence.
The first way to grow Wagpt is to make current users gain habit. I want people to use Wagpt every day and become addicted to it.
I can use many different tactics for this.
– I list the chat topics of users by contexts and determine their interests.
– I record users’ hourly, daily, and weekly usage times and cycles, and find patterns for them to gain habit.
– I develop different use cases for them to use the app more actively and effectively, and train them on this. (with nudges)
Use nudges
Let’s move on to even more powerful weapons.
– Nudges The main goal is to keep users in the app longer. There are two ways to achieve this:
1. Increase users’ usage time
2. Bring back inactive users.
All of these rely on personalization. And we have what it takes to implement personalization. Nudges are very suitable for this.
The key is, I can send messages to users even if they don’t write any prompts.
Why wait for them to write? Nudge them. We can identify users’ interests based on their behavior and chat topics without needing to ask them. And it will be quite easy to nudge and bring them back with various scenarios based on this.
For example, we can summarize the books or YouTube videos they want to read/watch. This is a use case. They will like the idea of the summaries they are interested in. If they showed interest in book summaries and asked for a summary of a book, we can suggest other similar books in a similar context using nudges. And this process can happen automatically. Incredible personalization is possible with nudges.
Segment users using Limbic map and ChatGPT
There are great opportunities to benefit from Limbic map. In short, Limbic map helps to segment people based on their emotional motivations. Normally, we use it in marketing to write landing pages. However, the situation is different here.
I would analyze the limbic personality types of users from their conversations, sentences they construct, keywords, and topics they mention. All of these conversations provide clues about people’s personality types.
I would do this for each user and use ChatGPT to analyze their limbic personality types. The conversations are already available, and I would ask the user to determine their limbic personality type distribution from these conversations and match them with the users.
For example, let’s say we determined from a user’s conversations that they have a harmonizer personality type. The emotional values of a harmonizer personality type are as follows:
Now I know their emotional values, desires, and fears. I would ask ChatGPT to talk to the user in this context.
The harmonizer personality type values trust and safety. They value friends, family, and nostalgia more. They are more traditional and make decisions more slowly. They avoid taking risks and do not like uncertainty.
To keep the user more engaged in the application, I now have a lot of information. I will ask them to consider these criteria when talking to them. The user should feel safe while using the product. I will optimize ChatGPT’s responses and language for these emotional values.
People like to be with people like themselves and spend time with them. The Wagpt product will approach each user like them with the identification of these emotional values and meet their emotional needs. This is an incredible opportunity for users to love and use the product more.
Publish an affiliate program for growth
This can be done in many different ways.
Here’s what I would do:
1. Offer a 30% commission. Whenever you refer a customer to us, you will receive a 30% commission on all payments that person makes. If you want real growth, you need to know how to share profits.
2. Reach out to Influencers on Tiktok, Instagram, and Youtube who have an audience that aligns with Wagpt, and send them the affiliate program.
Persuade potential customers to purchase.
Behavior model and cognitive biases for landing page and copywriting.
In this section, we will highlight the value of the product on the landing page by using the behavioral model and cognitive biases in its sub-steps.
Fogg behavior model
There are many different methods in classical copywriting. The most common and my favorite method is “Problem, Agitation, Solution, Benefit”. However, from a behavioral psychology perspective, classical methods are insufficient.
Our main goal for the landing page is to achieve conversion. We want a potential customer who has not yet made a purchase to become a customer. This is a behavioral change.
For this, I am using BJ Fogg’s behavior model.
The Fogg behavior model consists of 3 steps:
- Motivation
- Ability
- Trigger / prompts
The Fogg behavior model consists of 3 steps: motivation, ability, and trigger/prompts, and all three steps must be present for a behavior change to occur.
Let’s think about a potential customer who visits your website.
– If they’re not motivated, they won’t make a purchase.
-If there are barriers to making a purchase, they won’t make a purchase.
-If they don’t take action, they won’t make a purchase.
Missing any one of these steps means that the person won’t become a customer. Now let’s look at how to use cognitive biases in these steps.
Cognitive biases
Cognitive biases are another key component of the irrational model I’ve designed. They are the shortcuts we use to make decisions (Kahneman’s System 1 theory). We unconsciously use cognitive biases to perceive, evaluate, and make decisions.
We make more than 70% of our daily decisions using System 1, meaning we think quickly. Cognitive biases can lead us to make mistakes because of this speed.
When explaining our product to potential customers and persuading them, we should make their cognitive processes and perceptions easier.
Create contrast
Associated cognitive biases and effects; Contrast effect, framing effect.
What we compare something to and how we frame it affects our perception and decision-making.
For example:
- Comparing the features and benefits of a product to bad alternatives.
- Creating contrast in terms of time, effort, and money.
What bad alternatives do people use when they don’t have the product?
I mentioned before that the most key unique value proposition is the ability to chat with Wagpt using voice prompts. To create a sharp contrast, emphasize that creating text prompts is tedious and exhausting. We need to agitate the situation. This will make our most important benefit, the voice prompt feature, more compelling.
Turn it into a table or image to better explain the features and benefits that make Wagpt different from Chatgpt.
Headline for Wagpt;
⇒Use chatgpt with voice message on Whatsapp
Emphasizing Immediate Benefits
Related cognitive biases and effects; hyperbolic discounting, present bias
Hyperbolic discounting and present bias are our tendency to prioritize immediate rewards over rewards that will come in the future, even if those immediate rewards are smaller.
If the benefits of your product only appear long after purchase, convincing potential customers can be quite difficult.
Therefore, create immediate emotional or rational benefits that potential customers will experience when using your product. And emphasize this on your landing page.
Access Chatgpt with just one click in a matter of seconds. Speed is one of the most important things in our lives. Our websites can have high bounce rates due to a few milliseconds of delay. Because we want more speed.
There are significant differences in the number of steps and time required to use Chatgpt on its interface and to access Wagpt through WhatsApp. We need to highlight this to instantly and quickly access it and explain it on the landing page.
⇒Use Chatgpt with one click on Whatsapp
Highlight the Losses
Related cognitive biases and effects; loss aversion.
The pain of losing $100 is twice as powerful as the pleasure of gaining $100. This was proven not by me, but by Daniel Kahneman.
Winning something means getting more than what we currently have. However, losing means a reduction of something that we already have.
Therefore, losses always have a greater impact than gains because we always tend to act in order to protect our current situation.
Our unique value proposition was the voice prompt feature. People will miss out on this feature when using Chatgpt. We need to make them painfully aware of what they’re missing out on by not having this feature.
A little agitation.
Remove Ambiguity
Related cognitive biases and effects; Ambiguity effect, zero bias effect.
The brain loves clarity and hates ambiguity.
When choosing between two options, we tend not to choose the option that contains ambiguity.
This applies when marketing our products as well. List anything that could create ambiguity for a potential customer.
There are serious deficiencies in Wagpt’s current website on this issue. These are:
Pricing ambiguity
FAQ section on other page.
CTA sections not being used to remove ambiguity.
Also; Ambiguity of usage cases and benefits.
We will address pricing ambiguity in the pricing section in detail.
In general, we should remove all obstacles that prevent a potential customer from buying Wagpt for this section. Any situation that creates ambiguity will prevent a potential customer from making a purchase.
For example; A QR code appears in the desktop view.
• What will I encounter when I scan this QR code?
• Is there a free version of the product?
• If there is no free version, not stating it will lead to disappointment in the next step.
• Can I try it for free?
• Or is there a freemium package?
• Is a credit card required?
• If it is paid, how much do I need to pay?
Each of these is an unconscious problem that circulates in our minds and prevents us from taking action. Addressing each of them on the landing page is mandatory.
If you do not address them, achieving a good conversion rate is a dream.
Lighten the Cognitive Load
Related cognitive biases and effects; choice overload, paradox of choice, decision fatigue
Cognitive load refers to the amount of mental effort required to process information in working memory. When a landing page has a high cognitive load, it can overwhelm visitors and make it difficult for them to absorb and understand the information presented. This can lead to frustration, confusion, and a higher likelihood of visitors abandoning the page without taking the desired action.
Lightening the cognitive load on a landing page is important because it can help to improve the user experience and increase the likelihood of visitors converting.
This can be achieved by simplifying the design and layout of the page, reducing the amount of text and visual elements, and ensuring that the content is easy to read and understand.
Everything we include on our landing page creates a cognitive load and a decision point. A potential customer’s brain constantly (unconsciously) asks: “Is this ok for me? Should I keep scrolling?”
If you don’t do these, the customer will be cognitively exhausted before they reach the decision-making stage. Be ruthless and remove anything unnecessary.
Show What Others Are Doing
Related cognitive biases and effects: Social proof, herd behavior
We are influenced by others. When we are indecisive, have no opinion, or want to confirm our decision, we tend to follow what others are doing (herd behavior).
If you walk in the opposite direction of everyone else at a subway exit, you will soon doubt yourself (“Am I going the wrong way?”).
On a landing page, showing how others have used and benefited from your product can serve as a guide for potential customers.
Here’s my Wagpt example:
Nowadays, our own testimonials look quite mediocre and do not create reliability.
– How do people use wagpt?
– In what topics and contexts do they use it more?
– How many people use this product?
– On average, how many hours a day do people spend using this product?
– How many questions has wagpt answered in total?
All of these things and similar emphasize social proof, which is what others are doing. Nowadays, our own testimonials look quite mediocre and do not create reliability.
Use the above statistics transparently to build trust.
Make Visible:
Associated cognitive biases and effects; Attention bias, salience bias
The most critical thing for conversion is the buttons we use. Therefore, we must make them visible.
QR code on desktop and buttons on mobile are quite visible. That’s great.
I would make it more visible and explain the voice prompt feature here.
Create Urgency
We must trigger and motivate potential customers in a situation where increase their desire and remove barriers.
We must convert a potential customer after increasing their desire. If they postpone it, their emotional connection will decrease or disappear. And the rational brain comes into play.
So why should they buy it now?
Yes, I think the product is great. But I can buy it later.
We must prevent potential customers from postponing it.
We can the solution this problem with scarcity and urgency.
The landing page doesn’t create any urgency for me to use Wagpt right away. Although the product looks great, it’s important to create a sense of urgency to prompt action.
To create urgency, find or create reasons such as:
– Special launch discounts or invitations
– Exclusive (then to be removed) free trials for the launch.
These or similar strategic moves act as a trigger for people to buy now. And it prevents them from procrastinating.
Create Scarcity
When people are told “you can buy a maximum of 3 products,” they end up buying 3 products. This is both funny and interesting. After being told they can only buy three, they think about which three to buy.
In this context, scarcity always increases demand. There are around 50-60 paid users of Wagpt. If they offered this product to a limited number of people, the demand would at least triple. Daniel Kahneman has written many articles on this topic and has proven it.
We will examine the details in the pricing section.
Create Irrational Pricing strategy for Wagpt
Wagpt was launched with a $9 package only.
Not having a free package is not good as people cannot experience the product, but it depends entirely on the strategy.
Offering a small free or free trial package could enable people to try the product and show confidence in it. Additionally, we could collect information from free users for potential upgrades. Later, I’d develop an email strategy for 3, 7, and 30 days to encourage free users to upgrade.
When designing pricing hypotesis, we have only one goal.
To make potential customers feel like they’ve made a foolishly advantageous (profitable) deal.
For example; which package in this pricing design makes you feel like you’ve made a foolishly advantageous deal.
I would design a pricing for Wagpt like this.
How you design options, you design decisions and behaviors.
I would follow such a pricing strategy for Wagpt.
We behaviorally tend to choose Pro in a pricing design like this. A stupidly advantageous (profitable) deal in this pricing design is Pro.
In such a pricing design, about 60%+ of people will prefer the Pro package.
Because I carefully designed this pricing hypothesis for people to choose Pro.
Here’s how decisions are influenced using behavioral psychology
Tip 1:
Free trial is important for people to experience the product.
It also helps us get their information to stay in touch with potential customers. (like mail)
I offer very limited features. But it is enough for them to experience.
Tip 2:
The starter package has low specs.
I use this to make the Pro package feel more advantageous.
The starter acts as the package anchor.
We always see the first number given to us as an anchor and then evaluate what is offered based on it.
→Cognitive Biases; Anchoring bias
Tip 3:
$19 instead of $29
1- I offer a discount. I make it look more reasonable than its normal price.
2- I also use $29 as second anchor
→Cognitive Biases; Anchoring bias, Incentives
Tip 4:
There is only 10$ difference between them and the starter package.
However, the package features are too full.
That’s what makes the Pro package stupidly advantageous.
Tip 5:
I show which package people prefer most.
This makes it easier for them to make decisions without cognitive load.
→Cognitive biases; Social proof, Herd behavior, Choice overload, The paradox of choice
Tip 6:
At $99, the unlimited package makes the Pro package seem more reasonable.
People show their status with their purchases. There will be people willing to pay more for the same product and service.
→Cognitive biases; Confirmation bias, Status monkeys.
Tip 7:
Buttons are where we call potential customers to action.
I use it to remove barriers and ambiguities to buying.
→Cognitive biases; Ambiguity effect, Zero risk bias.
In summary;
Pricing strategies are the part where you will get the most benefit with the least effort to increase your income.
For example, if Wagpt had started with such a strategy, half of its existing customers who pay $9 would have purchased the $19 package by now.
This means their current MRR would have doubled.
2022 © irrational.marketing – Created by Denizcan Sanlav.