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Smartlead.ai - Vertical Growth Strategy

1. Users

⁠

Smartlead.ai⁠

is an AI-powered email marketing platform that helps businesses optimize their lead generation and nurturing processes. It is designed to help businesses generate engaging and interactive cold emails in real-time, which ensures that they gain maximum clients.

Smartlead.ai⁠

is a cutting-edge marketing automation tool that provides users with tools that save their time and help them close as many deals as possible. It is used popularly by agencies to automate their entire lead generation process as well as to connect Smartlead to external tools to push and pull data from.

1.1 Current customer profiles of
`Smartlead.ai`⁠
are:

Lead Gen agencies

Marketers and Teams

Recruiters

Sales

1.2 Customer Jobs:

Email Campaign Types →

Inbound

Welcome Email Series

Standard Promotional Campaign

Seasonal Campaign

Triggered Email Series

Post-Purchase Drip

Connect-Via-Social Campaign

Newsletter

Cart Abandonment Campaign

Re-Engagement Campaign

Outbound

Lead Gen Campaigns

Cold Outreach Campaigns

Another way to look at this is:

Single Email Campaigns

Sequence Campaigns

⁠

💡 Inbound has opt in and Outbound doesn’t which translates neatly into the core pain point of users and the primary value offered by Smartlead: Email Deliverability at Scale for Outbound/Cold Outreach.

1.3 Pain Points:

Deliverability Issues: Different email addresses have varying levels of deliverability, and poor deliverability can severely impact the success of cold outreach campaigns.

Reputation Management: Each email address has its own sender reputation, which can be affected by factors such as email quality, engagement rates, and spam complaints.

Tracking and Organization: Keeping track of multiple email addresses, campaigns, monitoring metrics, and organizing contacts or collateral can become overwhelming and time-consuming.

Optimizing Campaigns to maximize ROI can become overwhelming and time-consuming.

1.4 Metrics that Matter to ICP(Outbound/Cold Outreach Operators):

ROI

Deliverability and Reputation

CTR

Bounce Rates

Open Rates

Response Rates, Positive Response Rates.

1.4 Flow of a User looking to run outbound campaigns using Smartlead:

Create a New Campaign

Add Prospect List

Select Sender Email Addresses.

Warmup of Sender Email Addresses

Configure Delivery

Start Campaign

View Campaign Analytics

Improve Campaigns/Launch new Campaigns.

2. Pricing

⁠

Customers of Smartlead choose a tier based on what their expected usage would be. The pricing model is Usage Based Subscription model.

The primary purchase decision boils down to

Customers’ perception of value

Their usage expectation

Their budgets.

This is tied nicely with two key value metrics - Active Leads(number of prospects customers add to campaigns on Smartlead) and the Number of Emails they end up sending.

2.1 Analyzing Pricing Profiles/Tiers

⁠

(I’ve used the pricing page as the SoT since the upgrade screen in the app lists features differently.)

Table 1

Table 1

Comparison/ Tiers

Free

Basic - $39/month

Popular - $79/month

Pro - $94/month

Baseline Needs

Build and Launch Campaigns with Sequences and Lead Lists.

Unlimited Sender Email Accounts

Unlimited Warmup sender email addresses.

Split Testing

Detailed Analytics

General Support

Build and Launch Campaigns with Sequences and Lead Lists.

Unlimited Sender Email Accounts

Unlimited Warmup sender email addresses.

Split Testing

Detailed Analytics

General Support

Build and Launch Campaigns with Sequences and Lead Lists.

Unlimited Sender Email Accounts

Unlimited Warmup sender email addresses.

Split Testing

Detailed Analytics

Active Support

Build and Launch Campaigns with Sequences and Lead Lists.

Unlimited Sender Email Accounts

Unlimited Warmup sender email addresses.

Split Testing

Detailed Analytics

Consumption Needs as a Lever

1250 leads, 2500 emails

2000 leads, 6000 emails

10000 leads, 40000 emails

30000 leads, 150000 emails

Capability Needs as a Lever

Global Block List, Custom CRM, Email Guide Assistance

Webhooks & Integrations, API Access, Unlimited Seats(Agency), White-labelling, Addons: Client Seats

Value Optics#1: Price Point Differential

Baseline commitment of $39.00

$40 differential vs Basic

$15 differential vs Popular

Value Optics#2: Lead List to Email Ratio

1:2

1:3

1:4

1:5

Value Optics #3: Cost per Email, Cost per Lead

Per Email - $0.0065 Per Active Lead - $0.0195

Per Email - $0.001975 Per Active Lead - $0.0079

Per Email- $0.0006 Per Active Lead - $0.0031

There are no rows in this table

⁠

Observations

For a $40 differential between basic vs popular customers get almost ~7x email credits and 5x Lead credits. For the next jump up, theres a $15 differential for ~4x the email credits and 3x lead credits.

From Value Optics #3: It is 69.6154% decrease in cost per email when users go from Basic to Popular and 69.6203% decrease when they upgrade from Popular to Pro. Similarly the cost decrease for leads is consistent when users upgrade from Basic to Popular and Popular to Pro(59.4872% decrease vs 60.7595% decrease respectively)

From the lens of consumption needs - the value differential that the tiers offer are consistent across the board.

Hence to improve natural progression through the tiers, we focus on capability driven growth levels/features that add value.

Off a 1000 users, 25% in base plan, 15% in Popular, 45% in Pro, Rest in Custom.

Pro and Custom add up to 60% of paying customer base and this revenue concentration can be tied directly

2.2 Tipping Points: Analysis and Mapping

⁠

Baseline Needs:

Manage Sender Email Accounts - Warmup

Add Lead Lists

Craft Email Content

Create Email Sequences

Launch and Manage Campaigns

View Campaign Performance

Tipping Points:

Consumption driven Growth Levers:

of Emails sent per month

of Leads uploaded per month

Capability driven Growth Levers:

Extend Functionality/Value

Reply to received responses in app - Master Inbox(Free to Basic)

Integrate with existing tool stack - Webhooks & Integrations, API Access.

Manage Lead Lists at Scale 1

Populate Lead Lists - Use CRMS as a Source

Segment Lead Lists - AI Categorization

Prune Lead Lists - Global Block Lists

Improve Campaign Performance

Find the best performing campaigns - Configure Split Testing + Consume Analytics

Manage Clients (For Agencies)

White Labelling

Add Clients - Addon for Subusers

Drawdown limits for subusers

⁠

Objections:

Unsure of the value.

Unsure of what their usage is going to be like/have spikes in usage.

Only want to pay for what they use and not be locked in rigid contracts or deal with hidden fees.

Handling Objections:

Can start with a lower entry cost and scale up as their business needs grow -(✅ Free Trial)

Flexibility to upgrade or downgrade as needed, pricing accommodates changes in usage and business needs.

Handling Unexpected Fees: Overages: Provide top-ups for overage. Or a grace period before charging for overage.

Cost Saving Analysis vs Competition: Offer insights into cost savings with

Smartlead.ai⁠

compared to competitors.

Educational Content, Success Stories: Provide resources and real-world examples to illustrate value.

Threshold Notifications or Alerts.

2.3 Pricing Improvements

⁠

Creating more compelling Tipping Points across Tiers(adjustments to packaging capability needs) + Adding more value(capability needs growth levers/features) to Pro.

Better Visualize Added Value on Pricing: Improve the presentation of each tier's advantages to make it easier for users to compare. Use visual elements and concise summaries to highlight the unique benefits of each plan.

Incorporate tooltips that provide detailed explanations of plan features and benefits. This empowers users with a deeper understanding of what they're getting, reducing uncertainty and questions.

Expand FAQs section with objection-relevant questions. For example, add information about how unused email/contact credits are managed, addressing a typical user concern.

3. Communication Strategy

⁠

Design a communication plan to notify users when they are approaching their email credit or contact list limit.

3.1 Objective

⁠

Proactively communicate with customers when they approach or exceed usage thresholds, providing recommendations to help them reduce their usage to avoid additional charges OR upgrade.

For Users: This enhances predictability in the purchasing/retention process, the avoidance of unexpected fees that were not budgeted for, and the relief from administrative burdens associated with small overage payments.

For Smartlead: Upsell opportunities and increased customer LTV

3.2 Considerations

⁠

Email credits are utilized after campaigns have been configured and running, while Lead List credits are utilized as users upload lead lists.

Allow customers to flex before their minimum.

Having an Overage Policy: Designing the right kind of overage policies will mitigate possible dissatisfaction

Being transparent with customers about any upcoming changes in pricing and how it may affect them.

3.3 Key Principles

⁠

Proactive Communication: We will communicate with customers before they reach their email credit or contact list limits, ensuring a transparent and informative approach.

Customer-Centric Approach: Provide recommendations to help customers reduce usage and avoid extra charges or encourage them to upgrade when needed.

Transparency: Keep customers informed about pricing changes and any potential impact on their accounts.

Overage Policies: Design fair and customer-friendly overage policies to minimize dissatisfaction.

3.4 Communication Plan

⁠

Usage Threshold Alerts:

In-App Notifications: Implement in-app notifications that appear when users approach predefined usage thresholds. Provide clear guidance on how they can reduce their usage or upgrade their plan.

Email Alerts: Send email notifications as users approach these thresholds, outlining their current usage and offering tips to optimize their usage.

Grace Period and Renewal Options:

Introduce a grace period for users who exceed their limits, allowing them a limited time to adjust their usage before any additional charges apply.

3.5 Channels

⁠

While Smartlead has a Slack Community, A Reactive Chat Application, and an Email marketing subscription engine, for this initiative we want to leverage Email and In-App Messaging primarily.

3.6 Messaging

⁠

Content

Content

Trigger

Channels

Action

Copy [→ CTA]

80% of email credits used

In-app notification

Inform users they're approaching their email credit limit and suggest considering additional credits.

📢 Heads up! You've used 80% of your email credits. To ensure you have the resources you need, it's time to think about adding more credits to your account.

80% of email credits used

Email Sequence

Inform users they're approaching their email credit limit and suggest considering additional credits.

📢 Heads up! You've used 80% of your email credits. To ensure you have the resources you need, it's time to think about adding more credits to your account. → Click here to explore options.

Email credits exhausted

In-app notification

Encourage credit purchase

📢 Attention! Your email credits are exhausted. Don't miss out on reaching your contacts. Current Campaigns paused - show Campaign Names. → Purchase more credits now!

Email Credits Exhausted

Email Sequence

Notify and suggest credit purchase

Subject: Urgent: All Email Credits Exhausted Dear [User's Name], You’ve hit the email credit limit for {Billing Period} Your email campaigns are important, and we want to ensure they continue without disruption. By adding more credits to your account, you can reach your contacts and make the most of your email marketing efforts. To purchase additional credits, click the button below: → Purchase Credits Thank you for choosing Smartlead for your email marketing needs. If you have any questions or need assistance, please don't hesitate to contact our support team.

Exceeded email credit limit

In-app notification

Offer grace period and plan upgrade options

⚠️ Alert: You've exceeded your email credit limit. Act now to avoid disruptions! → Extend Your Plan now

Exceeded email credit limit

Email Sequence

Offer grace period and plan upgrade options

Subject: Important: Action Required for Your Email Credits Dear [User's Name], ⚠️ Alert: You've exceeded your email credit limit. Action is needed to avoid disruptions to your email campaigns. We understand that usage can fluctuate, which is why we're providing you with a grace period to make the necessary adjustments. During this grace period, no additional charges will apply. Here are your options: 1. Extend Your Plan: To ensure uninterrupted service, consider extending your plan to accommodate your email credit needs. Click the button below to upgrade your plan now: → Extend your plan now 2. Clean Your Lists: Optimize your email credits by reviewing and removing outdated or inactive contacts. This will help you make the most of your existing plan. Taking action now will ensure your campaigns continue without any hiccups. Thank you for choosing Smartlead for your email marketing needs. If you have any questions or need assistance, please don't hesitate to contact our support team.

90% of contact list limit reached

In-app notification

Notify users they're nearing the limit for contacts and recommend considering an upgrade.

⚠️ Attention! You're almost at your contact list limit (90%). To continue managing your growing list of contacts effectively, think about upgrading your plan. → Get started now.

Contact List Limit Reached

In-app notification

Suggest cleaning and plan upgrade

👥 You've reached your contact list limit. To manage your expanding network, consider cleaning your list and upgrading your plan. → Upgrade Now

Contact List Limit Reached

Email notification after Session End if they havent already upgraded.

Notify and suggest list cleaning/upgrade

Subject: Important: Contact List Limit Reached Dear [User's Name], We wanted to inform you that you've reached your contact list limit. To continue growing your network effectively, consider cleaning your list or upgrading your plan. Your growing list of contacts is a valuable asset. To ensure it stays well-maintained, we recommend the following options: 1. List Cleaning: Review your contacts and remove duplicates or inactive contacts for more efficient campaigns. → Clean now 2. Upgrade Options: Explore our upgraded plans with higher contact limits to support your expanding network. → Upgrade now Taking these steps will help you manage your lists effectively and get the most out of your email marketing. If you have any questions or need assistance, please don't hesitate to contact our customer success team. Thank you for your trust in Smartlead.

There are no rows in this table

⁠

4. Vertical Growth Strategy

⁠

4.1 Goal

⁠

Drive further user verticalization and dependency on Smartlead to realize opportunities for new revenue, and new customers.

4.2 Forward Integration

⁠

Introduction of new features that integrate with

Smartlead.ai⁠

's existing platform to provide users with a more comprehensive solution

Deliverability and Reputation:

Email Testing: Ensure email deliverability and quality by testing emails across various platforms, ISPs

Dedicated IPs: Use dedicated IPs for improved sender reputation.

Bounce % Alerts: Set up alerts for bounce rates to maintain a clean sender reputation.

Lead Lists:

Built-In Prospect Email Validation: Ensure that your prospect lists are accurate and up to date, increasing the efficiency of users’ outreach.

Opening Rates:

Built-in Subject Line Generation & Personalization: Craft compelling subject lines and personalize messages to capture prospects' attention.

Predictive Sending using AI: Send messages at the optimal times according to the prospect's time zone, mimicking human behavior for higher engagement.

Response Rates:

A/B Testing: Continuously optimize your messages by testing different approaches.

Dedicated Global Analytics: Gain insights into campaign performance to make data-driven improvements.

Automation:

Advanced Sequences with Branching Logic and Subsequences: Develop intricate email sequences that adapt to prospect interactions.

4.3 Backward Integration

⁠

Introduction of new features that integrate with external tools and platforms to provide users with a more comprehensive solution

Deliverability:

Multi-channel outreach that allows users to reach their prospects through various communication channels beyond just email

Lead Lists:

Built-In Prospect Enrichment: Leverage advanced data enrichment to create highly relevant prospect lists that resonate with campaign goals

Lead Scoring: Implement lead scoring to prioritize and focus on the most promising leads.

Response Rates:

Hyper-Personalization & Dynamic Email Content: Create dynamic content that is hyper personalized using AI.

Multilingual Translation of Campaigns: Enable the translation of campaigns into multiple languages for a global audience.

Automations:

Trigger-Based Outreach Campaigns: Launch campaigns triggered by prospect actions or behaviors.

Native Integrations: Seamlessly integrate with CRMs and tools like Salesforce and Calendly.

4.4 Prioritizing Bets

⁠

Scoring

Scoring

Feature

Reach

Impact

Confidence

Effort

Estimated Value

Hyper-Personalization using AI

100%

2 Months

1.5

Multichannel Outreach

80%

2 Months

0.96

There are no rows in this table

⁠

Notes on Scoring

Reach

10.0 = Impacts the vast majority (~80% or greater) of users, prospects, or customers

6.0 = Impacts a large percentage (~50% to ~80%) of the above

3.0 = Significant reach (~25% to ~50%)

1.5 = Small reach (~5% to ~25%)

0.5 = Minimal reach (Less than ~5%)

Impact How much will this impact customers and Smartlead? Impact could take the form of increased revenue, decreased risk, and/or decreased cost (for both customers and Smartlead). This makes it possible to compare revenue generating opportunities vs. non-revenue generating opportunities. Potential for future impact is also taken into account as well as the impact to the Smartlead brand (for example unlocking free-to-paid conversion opportunities).

Massive = 3x

High = 2x

Medium = 1x

Low = 0.5x

Minimal = 0.25x

Confidence

High = 100%

Medium = 80%

Low = 50%

Effort How many person months do we estimate this will take to build?

4.5 Hyper-Personalization using AI

⁠

Overview

Feature that integrates with

Clay.com⁠

and GPT-4 to provide users with a more personalized email outreach experience. This feature leverages the power of AI to generate personalized messages that are tailored to each prospect's interests, preferences, and behavior.