The Growth Newsletter #136

Warren Buffet letters, market gaps, and rituals.  ‌ ‌ ‌ [Demand Curve]( The Growth Newsletter #136 [Read on demandcurve.com]( Thanks to our sponsors for keeping this newsletter free for all of you! Check them out :) Brought to you by [Positional](—the game-changing toolset for content and SEO teams. Founders Nate and Matt (2x Y Combinator alums) have scaled some seriously impressive content/SEO channels (and in the most competitive spaces). They've created the toolset they always wish they had.  Positional helps content teams create fantastic content and rank better in organic search. And it reverse engineers top-performing content and provides data-driven recommendations for ranking better in organic search. Sign up for [Positional’s private beta](! (DC readers are prioritized on the waitlist)  Brought to you by [Vanta](. Need to achieve security compliance? Vanta offers unique compliance support for growing businesses, so you can focus on building and scaling. This includes: - 1:1 support from their compliance experts - Automating up to 90% of the work for SOC 2, ISO 27001, HIPAA, and more Achieving security compliance helps you enter new markets, land bigger deals, and earn customer loyalty. And most of your competitors aren't doing it. [Learn more and get compliant]( Want to be featured in front of 81,600 founders and marketers? [Learn more here](–booking into October.   Hello and welcome to all growth-loving founders and marketers.  Based on the number of auto-responders I've been getting on this newsletter, literally nobody has been at work the past two weeks. So welcome back to the real world everyone!  This week is the Warren Buffet letters, market gaps, and rituals. Let's dive in 🐭 – Neal 1. How Warren Buffet writes compelling letters Insight from [John Harrison]( (not a mix of John Lennon and George Harrison). Warren Buffet's net worth is ~$117,000,000,000 and his company's investment portfolio gains on average 19.8% per year.  His own company's stock costs $548,984.95 each—wild.  He's famous for his "buy and hold" strategy—resisting selling in the best and worst of times.  Besides insane willpower, one of his greatest strengths are his expertly written shareholder letters.  In them he convinces and assures his shareholders to continue to hold their shares. To believe in him and his strategy even through the worst crashes and recessions.  His tactic for writing compelling letters, as John Harrison wrote: Or as Jeremy wrote: Write marketing copy, newsletters, emails, and messages as if to a sister, a best friend, or your mom/dad. And not for a state of the union or to a supreme court judge. 2. 3 ways to find gaps in the market Insight from Charlie Grinnell ([RightMetric]()—charts below are from their research.  Most companies completely wing their growth strategy.  Here are 3 ways to use research to find opportunities in the market:  #1. Audience Whitespace  Of people interested in your product/category, who isn't being being served? For example: #2. Channel Whitespace  Where are customers spending time and competitors are not?  For marketing channels, Charlie says to find the intersection of: 1. Where your potential customers hang out 2. Where there's the least competition 3. Where competitors are already seeing results 4. Where your content/voice makes sense #3. Positioning Whitespace  What are your customers: 1. Searching for (search trend analysis) and 2. Asking for (social listening) That competitors are not focusing on. For example: Take time to study these 3 whitespaces to find opportunities—and if you're willing to invest, tools like SimilarWeb have a ton of data to parse through.  3. Create a ritual to increase satisfactionand sales Insight from [Ariyh](  Rituals turn mundane tasks into experiences.  When customers follow a series of prescribed actions for a product they tend to: - Enjoy the experience more - Enjoy the product more - Pay more to have it  But rituals can't be random gestures. They need to be systematic and repetitive. It has to feel natural to how people actually use the product, and enhance the experience.  Some familiar ritual examples: - Oreo: Twist, lick, and dunk cookies in milk. - Corona: Press a fresh lime wedge into the bottle. - Champagne: Pop the cork, cheer, and pour into flutes.  Why rituals work: Rituals increase people's involvement with a product in a unique and memorable way. - A ritual instructs people on the "right way" to use it. - A mini version of the [IKEA Effect](, the ritual makes customers feel like they had something to do in the creation of the product experience, therefore increasing its value and appeal. - It gets them in the right mindset for using the product. They also turn a mundane moment into an experience. They're not just opening up a bottle of sparkling wine, they're celebrating a win.  Steps to implement:  Elements of a great ritual: - Easy to do: If it's hard, people won't do it. - Tied to an emotion: Like celebration for champagne. Relaxing for Corona + Lime. - Have a trigger: Celebration for champagne. KitKat increased sales by creating the ritual for KitKat + coffee—drinking coffee is a very common trigger. - Add to the experience: Let's face it, Corona is kinda meh. The lime adds to it.  Once you have an idea for your ritual and you've found an emotion or context to tie it to, test it on a small scale.  Then associate the ritual (lime in a corona) with the target emotion (relaxing) by showing it in a context that evokes that emotion (someone on a beach in Mexico on vacation).  If you've done it right, your ritual will grow organically and become inherent to the product experience.   News and links News you can use: - Twitter/X updated their privacy policy twice. [Once]( about collecting biometric and employment data. [Second](, they may use any data they collect to train AI models. - To cut down on misleading ads and spam, Google announces a [probationary period]( for first-time advertisers. - Meta announces it's considering a [premium ad-free tier]( for Facebook/Instagram in the European Union due to upcoming regulations. This could cause ads to be less effective in the EU! - BeFake, a social app focusing on sharing BeReal-like photos altered using AI, just [raised $3M](. I am so confused what is going on with the world right now.  Report we recommend: [2023 Benchmark Report](* Looking to grow your agency or freelance business?  Mailchimp & Co interviewed 1,500 marketers to find out how the top agencies and freelancers win business.  You can use the insights to dial in your pricing, community strategy, and future expansion plans.  [Scale faster with the free report now]( *Sponsored by Mailchimp   Something fun From [Omixraf](.   What did you think of this week's newsletter?  [😍 Loved it]( | [😄 Great]( | [🙂 Good]( | [🤷‍♀️ Meh]( | [🤬 Bad](  If you enjoyed this, please consider sharing it with a friend. These newsletters take hours to make each week, so it really helps when you share us with fellow founders and marketers.  And if you have any comments/question, I'd love to hear them. Just hit reply!  In case you're new: Who's [Demand Curve](?  We’re on a mission to help make it easier to start, build, and grow companies.  We share high-quality, vetted, and actionable growth content as we learn it from the top 1% of founders and marketers.  How we can help you grow: - Read our free [playbooks](, [blog articles](, and [teardowns](—we break down the strategies and tactics that fast-growing startups use to grow. - Enroll in the [Growth Program](, our marketing course that has helped 1,000+ founders get traction and scale revenue. - Check out our [Sprints](: short video courses that are laser-focused on a topic in growth. - Want to build an audience of buyers? Join the waitlist for the [Un-ignorable Challenge](. - Are you an ambitious startup/scaleup looking to grow? Our agency, [Bell Curve](, can be your strategic growth partner. - Get your product in front of startup founders by [sponsoring]( this newsletter. See you next week.  — Neal and Justin [Neal]( [Neal O'Grady]( [Grace]( [Justin Setzer](   © 2023 Demand Curve, Inc. All rights reserved. 4460 Redwood Hwy, Suite 16-535, San Rafael, California, United States [Unsubscribe]() from all emails, including the newsletter, or [manage]( subscription preferences.