How to Grow Your Startup’s Email List

Man sitting on the ground with a laptop

 

We sometimes get questions about how other clients work with Tuff to reach their growth goals — so we’re sharing some stories to help bring our services to life. Meet Daycation.

Daycation is a Miami-founded startup that allows people to book “daycations,” gaining access to hotel amenities without staying the night. Traditionally, people must check in as hotel guests to access amenities like pools, lounges, hot tubs, gyms, and private beaches. Now, with Daycation’s network of beautiful, on-demand hotels, users can visit their site and easily book hassle-free day experiences.

We worked with Daycation to grow their email list. In two weeks, we added 1,000 new subscribers at an acquisition cost of $1.15 per subscriber. In addition to the list growth, 25 of the new subscribers booked a Daycation within 30 days of joining the email list.

Why Daycation Focused On Growing Their Email List

For starters, email has been the #1 most profitable marketing channel for ten years in a row. From this one statistic alone, it isn’t hard to see why you need to grow your startup’s email list. It is a key piece of any well-rounded user acquisition effort.

From a growth perspective, it is the statistics on customer acquisition costs that make email a no-brainer for a business like Daycation. According to McKinsey, email is 40 times more effective at acquiring new customers than Facebook or Twitter.

While we had launched a number of acquisition channels for Daycation, including paid social and chat, we were looking to build an email list of valuable subscribers. Because Daycation is a transactional marketplace, we were confident that email marketing would be a more effective channel than social for driving people to their website and getting them to sign up and purchase a day pass.

So, how did we attract 1000+ new subscribers in two weeks?

Let’s dive in and take a look.

Daycation’s Playbook:

  • Everything begins with great content or value. People will find your site because of your amazing content. They will keep coming back because you provide relevant value. Your content will be the foundation of what you email to them, which will be the reason they stay subscribed (or hit unsubscribe!). For Daycation, we decided to run a cabana giveaway in Miami. In exchange for an email address, people entered for a chance to win a day pass and cabana for four at one of Miami’s top luxury pools.
  • Once you have the right content, you need to start putting your landing page together. Creating a high converting landing page isn’t rocket science. However, creating an effective page involves more than simply designing something that looks good. For Daycation, we leveraged these nine components of a killer landing page and mocked a wireframe using InVision.
  • The page went live, and we needed to get the word out. For Daycation, that meant adding a banner to the homepage of the site, as well as tapping into paid social. We launched Facebook and Instagram campaigns, targeting a specific subset of customers who were most similar to their best current customers.

Screenshot of a Facebook ad for Daycation

Screenshot of an Instagram ad for Daycation

  • Every interaction with someone is a chance to influence their opinion about your business. The minute you collect an email you can start providing relevant value and the message you send is critical. Using Customer.io, when someone signed up for the giveaway, we triggered the confirmation email below. For a large percentage of this list, this was the first email they ever received from Daycation. This is a large opportunity to make a lasting first impression. Try your best to step away from a transactional mindset and show your companies personality.

Screenshot of an email from Daycation

  • We ran the giveaway for two weeks, spreading the word to as many people as possible. Once the campaign ended, we announced the winner through email, sending the entire list a $10 off coupon code on their next Daycation.

Screenshot of an email from Daycation

The Results:

  • Duration: 2 Weeks
  • Ad Spend: $1,215.76
  • New Subscribers: 1,264 new subscribers
  • Cost Per Subscriber: $1.15
  • Subscriber Purchases (within 30 days): 25

Next Steps:

Our focus on email didn’t end with the cabana giveaway. You’re not just looking to grow your startup’s email list and present a nice vanity metric. It can be easy to just focus on building the list and see the number of subscribers growing and call it a success. Once you have a healthy list of emails, you need to continue focusing on the value you provide to your users with email. What is the end goal and conversion you’re looking for them to make? 

Free Growth Strategy Session

What questions do you have about customer acquisition or email strategy that we might have missed? For more help with your questions feel free to reach out to Tuff! We’d be happy to review an existing account and talk about how to grow your startup’s email list and what to do with that growth. Sign up for a free growth strategy session with Tuff today.