Increase sign-ups by teasing the product via loss aversion

Grammarly Grammarly signup

Overview

Grammarly teases the experience behind a sign-up pop-up box, sparking curiosity and leveraging loss aversion to motivate users to explore further.
a screenshot of the signup flow explaining how to Increase sign-ups by teasing the product via loss aversion
a screenshot of the signup flow explaining how to Increase sign-ups by teasing the product via loss aversion
a screenshot of the signup flow explaining how to Increase sign-ups by teasing the product via loss aversion
a screenshot of the signup flow explaining how to Increase sign-ups by teasing the product via loss aversion

Business Outcome

Increase Conversion Rates

By teasing the product experience and benefits, Grammarly aims to increase the percentage of visitors who sign up for an account, leading to higher conversion rates.

Behavioral Outcome

Feeling of Loss

By providing users with a tangible experience of the product's benefits before requiring sign-up, Grammarly increases the perceived value of creating an account. Users are more motivated to sign up to avoid losing access to the features they have already experienced and found useful.

The Behavioral Science

Loss Aversion

Loss aversion is a cognitive bias that suggests people tend to prefer avoiding losses more than acquiring equivalent gains. In other words, the pain of losing something is psychologically more powerful than the pleasure of gaining something of equal value.

How It Works

Grammarly leverages loss aversion by allowing users to interact with their product and experience its features before requiring them to sign up for an account while limited acess to specific features.

By providing a taste of the product's value upfront, users begin to perceive the benefits they would lose if they do not create an account.

The potential loss of access to helpful features like spelling and grammar corrections becomes a strong motivator for users to sign up, as they seek to avoid losing the value they have already experienced.

This approach is more effective than simply presenting the benefits of signing up, as the fear of loss is a more powerful psychological driver than the promise of gain.

How It Might Backfire

Information Overload

Information overload or mismatched expectations can occur if the teaser provides too much information or highlights features that do not align with users' needs. This can lead to confusion, decision paralysis, or disappointment with the actual product experience.

How To Test

A/B Tests

Run A/B tests with different variations of the teaser message and measure sign-up rates and user engagement.

Surveys & Interviews

Gather qualitative feedback through surveys or interviews to understand users' perceptions and identify areas for improvement.

Frequently Asked Questions

To enhance a product-led growth (PLG) model using Grammarly's signup tactic, implement a teaser experience that showcases your product's core value before requiring users to sign up. This approach allows users to interact with key features, creating a sense of ownership and perceived value.

By leveraging loss aversion, users become more motivated to sign up to retain access to the benefits they've already experienced. This can lead to higher conversion rates and accelerated user adoption, key metrics in PLG models. Ensure the teaser highlights features that align with your target users' needs to maximize its effectiveness in driving signups and long-term engagement.

To improve conversion rates using Grammarly's signup tactic, implement a product teaser that allows users to experience key features before signing up. This approach leverages loss aversion, making users more likely to convert to avoid losing access to the valuable features they've already experienced.

Focus on showcasing features that provide immediate value and align with your users' needs. Use clear calls-to-action that emphasize the benefits of signing up to retain access. A/B test different variations of the teaser message and measure sign-up rates to optimize your approach. This tactic can significantly increase conversion rates by transforming passive visitors into engaged users who are motivated to create an account.

To optimize your website using Grammarly's signup tactic, integrate interactive product teasers throughout your site. These teasers should provide users with a tangible experience of your product's benefits before requiring signup. This approach can increase engagement and motivate users to create an account.

Implement the teasers strategically on key pages such as your homepage, product pages, or blog posts. Ensure the teased features align with the content of each page for maximum relevance. Use clear messaging that highlights the value users will lose if they don't sign up. This tactic can improve overall website performance by increasing user engagement, time on site, and ultimately, conversion rates.

To A/B test Grammarly's signup tactic, create two versions of your signup process: one with a product teaser (version A) and one without (version B). In version A, allow users to interact with key features before presenting the signup form, while in version B, present the signup form immediately.

Randomly assign visitors to each version and measure key metrics such as signup rates, time to signup, and subsequent product engagement. Additionally, track user behavior within the teaser experience, noting which features are most engaging. Complement this quantitative data with qualitative feedback through user surveys to understand the perceived value of the teaser approach.

Analyze the results to determine which version leads to better outcomes in terms of conversion rates and user satisfaction. Use these insights to refine your signup process and optimize your product-led growth strategy.

Grammarly's signup tactic improves user experience by providing immediate value and reducing the perceived risk of signing up. By allowing users to interact with key features before creating an account, it gives them a clear understanding of the product's benefits, helping them make an informed decision.

This approach also creates a sense of ownership and familiarity with the product, making the transition to becoming a registered user feel more natural. The tactic leverages loss aversion, tapping into users' desire to retain access to valuable features they've already experienced. This can lead to higher user satisfaction and engagement, as users are more likely to appreciate and utilize a product they've already found beneficial.