Discover the Power of the “Only-Factor” to Drive Conversion
According to the CMO Council, digital ads will lead the way for global media growth in the next two years, accounting for 33% of total advertising revenue and growing from $133 billion to $194.5 billion. This month’s MarketingExperiments Web clinic examined how to make the most of this increasing digital investment by focusing on the “Only-Factor” — the point of your value proposition where your product’s exclusivity and appeal meet.
Check it out here.
The two experiments below illustrate the power of the “Only-Factor.”
In the first experiment, a credit card company wanted to see which PPC ad would produce the most applications.
Version A promoted its affiliation with a popular organization.
Version B noted that it offered the only credit card that supported this particular organization.
The result: Exclusivity matters. 2.34% clicked to apply for their credit card from Version A while 4.07% clicked to apply from Version B. This is a 74% lift that was validated at a 95% level of confidence.
In the second experiment, a software company wanted to drive more visitors to its landing page.
Version A specifically outlined how its product stands apart (number of clients served, worldwide market leader, award-winning).
Version B mentioned awards, but was far less specific.
The results indicated that specificity converts. Version A reported 1.08% clickthrough while Version B had only .89% clickthrough — a relative difference of 22% that was validated at a 95% level of confidence.
Want an instant test to measure how strong your “Only-Factor” is in your online advertising? Replace your brand’s name with a competitor’s in your online advertising. If the ad still works, you have work to do. You also have work to do if you’re offering exclusive benefits that your market place is ho-hum about.
Exploit your “Only-Factor” by creating and communicating a powerful value proposition: why customers should buy from you rather than anyone else. The heuristic below illustrates the concept.
When you subtract the cost force (Cf — the perceived cost of taking an action, like buying your product), from the Value Force (Vf — the perceived value of what you’re offering), you will get the net force (Nf). The higher the net force, the higher your conversions. Value force is made up of appeal (Ap) and exclusivity (Ex). Therefore, the higher your exclusive appeal, the higher your value force. So, to achieve the most conversions, you want the highest appeal and exclusivity possible. That’s the “Only-Factor. ”
To identify and communicate your strongest value force and the “Only-Factor” that comes with it, you’ll want to download and fill out the free value proposition worksheet here. This isn’t a solo activity; involve as many of your colleagues in as many departments as possible. You may even want to talk to your customers as well to attain the most accurate perceptions. It will be well worth the time invested as you’ll have the knowledge you need to pinpoint your “Only-Factor” and use it to drive more conversions.
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Discovering Your Value Proposition: 6 ways to stand out in a crowded marketplace [MarketingExperiments Web clinic replay]
Sign up for the MECLABS Value Proposition online course [MECLABS is MarketingExperiments’ parent research company]