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Posts Tagged ‘Value Proposition’

Perception vs Reality in the Eyes of a Decision Maker

October 20th, 2014 2 comments

Every company struggles with finding ways to convey the value of their product or service in an impactful way. The reasons for subpar value proposition can range anywhere from the value of the product being presented in a convoluted or confusing way to not reaching the customer when they are motivated to buy.

In some cases, the mindset or pre-existing biases can cloud the value proposition in a potential customer’s mind. The ability to overcome that destructive perception is key to guiding a potential customer through any sales funnel.

 

Clarity trumps persuasion — and a wrong perception

Anyone who has seen a webinar or attended a summit featuring MECLABS’ Managing Director, Flint McGlaughlin, has most likely heard him say, “Clarity trumps persuasion.” I want to take that one step further and say that there is a great feat in providing enough clarity to trump a wrong perception.

Earlier in my career at MECLABS, I spent time as the Lead Generation Specialist. In that role, our task was to generate sales-ready leads for our partners.

During that time, I was assigned to one of our more difficult partners — a global provider of outsourced investment management services.

My job was to speak with C-level decision makers of non-profit organizations and schedule meetings with one of our partner’s regional directors.

These meetings had one purpose: Communicate the distinguishable benefits of the firm and its outsourcing model to these decision makers. The problem was these DM’s didn’t want to talk to me.

The decision makers were well aware, as was our partner, that switching an investment management provider was an extremely long and involved process, and more often than not, the organization I was speaking with was happy with the status-quo and did not want to consider an alternative approach.

Their perception was that we were looking to force the organization to switch their investment model after the meeting. This wasn’t the case. Finally, after many rebuttals that weren’t resonating, we started to change our approach and messaging.

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Subscription Checkouts Optimized: How experimentation led to compounding gains at the revenue level

August 25th, 2014 No comments

Subscriptions have been the lifeblood of almost every media publication since the conception of the industry.

But imagine for a moment that you were trying to subscribe to your favorite newspaper and you were presented with something that looked like the page below.

 

Experiment #1. Reworking disconnected, confusing pages

checkout-test-control

 

This was the first step in the checkout process for  subscribing to a large media publication. 

Editor’s Note: To protect their competitive advantage, we have blurred their identity.

Once a customer entered their ZIP code to determine whether this publication could be delivered to their area, they were taken to this page. Put yourself in the mind of the customer and think about how this page would have been received.

That is precisely what the marketing team did. What they saw was a very disconnected page that gave the customer almost no reassurance that they were still buying from the well-known media publication.

  • The publication logo was almost entirely missing from the page.
  • The colors on the page did not match the brand of the company.
  • The two levels of navigation at the top of the page provided multiple opportunities to click away.
  • The entire process seemed complicated to the customer.

Though there were a number of things the team wanted to change on this page, they needed a new page that changed only a few elements. Every day this page was live on the site, the publication was losing potential revenue from customers finding the process too difficult to complete. A long, arduous Web redesign was not an option. They needed to recover some of that revenue as fast as possible.

So the team ran an experimental treatment in an online test that they thought would require the least amount of time and resources and still achieve a high return on investment. The treatment is displayed below.

checkout-test-treatment

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Landing Page Optimization: 5 factors that lead to (and prevent) conversion

August 18th, 2014 1 comment

Anytime we share research about overall conversion rate benchmarks, I give the same caveat – while it’s helpful to understand conversion rates for your peers, the bigger question you must ask yourself is how to improve conversion rates on your own landing pages and in your own funnels.

 

Is there a methodical way to increase conversion?

While marketing has tended to be dominated by the marketer with the “golden gut” or the star direct response copywriter, other disciplines in the enterprise – from manufacturing to IT – have developed methodological processes to improve quality and consistency.

The MECLABS Conversion Sequence Heuristic is an attempt to bring the same discipline, rigor and sustainable success to the marketing department. It is part of a patented repeatable methodology (patent number 8,155,995) developed by Flint McGlaughlin, Managing Director, MECLABS (parent company of MarketingExperiments), based on years of testing and research of real product and service offers presented to real customers.

conversion-sequence-heuristic

 

For long-time MarketingExperiments readers, you might be very familiar with the Conversion Sequence Heuristic and have, hopefully, been using it to improve conversion in your own tests. (If so, let me know. We’d love to share those results to inspire other marketers.)

But since the Conversion Sequence Heuristic helps more new marketers discovering it for the first time every year, it helps to occasionally revisit this fundamental approach to marketing every now and again.

Read on for a cursory look at the factors that affect conversion, and if you’d like a more in-depth understanding of how you can apply this heuristic to your own landing pages and marketing efforts, you can take the Landing Page Optimization Online Course.

 

Probability of conversion

The Conversion Sequence Heuristic is not an equation to solve. Rather, it is a heuristic, or thought tool (i.e., really cool checklist) to use as you work on landing pages and other marketing offers.

You can never guarantee conversion, but by making (sometimes subtle) changes to the right areas, you can increase the probability of conversion. This heuristic helps you identify those key areas.

 

Motivation of user

The numbers in front of the different elements of the heuristic indicate how much they impact the probability of conversion. All of the elements are not equal.

The motivation of the user is the single most important factor affecting conversion.

To see why, let me give you a simple example using myself as the customer. I am a huge Pearl Jam fan. If Pearl Jam came to Jacksonville, Fla., I would find a way to be at the concert, even if their ticket selling process, sales funnel and landing page were not optimized. I am highly motivated.

The motivation of the user is also the only element of the Conversion Sequence Heuristic that you cannot change. It is intrinsic in your potential customers.

You can, however, gain an understanding of your potential customers’ motivations to better tap into those natural motivations and better serve your ideal customers while improving conversion.

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Email Marketing: Copy test increases clickthrough 37%

July 24th, 2014 3 comments

Converting attention into interest is really the sole purpose of copywriting.

How you approach that task in your marketing efforts can make a huge difference in the results.

In this MarketingExperiments Blog post, we’ll look at how some tactical copy changes increased one company’s clickthrough rate by 37% to help you craft effective copy of your own.

But first, here are a few snippets on the test.

 

Background: Company selling audio equipment and accessories.

Goal: To increase clickthrough rate.

Research Question: Which email copy approach will generate the highest clickthrough rate?

Test Design: A/B/C variable cluster split test

 

Controlemail-copy-test-control

 

In the control, the MECLABS research team hypothesized the email utilized a headline that was not immediately clear, thus undermining the value of the offer.

 

Treatments 

email-copy-test-treatments

 

Here is a simple breakdown of the differences in the treatments:

  • Treatment 1′s email tweaked the headline to focus on the aesthetics and performance value of the product.
  • Treatment 2′s headline was centered on the overall value proposition of the product.

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Value Proposition: 4 key questions to help you slice through hype

July 21st, 2014 2 comments

I was originally going to write this blog post to help marketers spot hype in their green marketing claims.

But then, I had an epiphany.

Why focus exclusively on green marketing that may have gone awry at the fringes?

Hype in marketing is far from exclusive to the green crowd and honesty is needed in every claim your marketing makes.

I decided to think a little bigger – much bigger – by sharing four key questions you should ask about any marketing claim to help you slice through hype and deliver true value to customers.

 

Question #1. Is our claim tangible? 

value-tangible

 

Our senses love being rewarded, so if your claim offers tangible value, the nature of it should connect directly to the customer experience.

For example, let’s look at the copy above from a recent experiment on green marketing.

The “green value” is in the nature of the manufacturing process and is directly connected to the quality of the product.

This leaves one more thing to consider when crafting tangible claims: Does the nature of the claim actually make the end product more appealing?

 

Question #2. Is our claim relevant to customers’ needs?

relevant-claim

 

I like these examples because all of them, while noble in cause, do not directly connect to a relevant problem a customer is having.

For example, I live in Florida and my desire to avoid sunburns gives the SPF of a sunscreen a greater relevance to my needs than just about any other claim.

Consequently, this is where focusing on claims that are relevant can mitigate the risk of associating products with ideas or causes that are abstract.

A biodegradable pen is nice to have. A biodegradable pen with 12% more ink than the next guy is even better.

The power of relevance rests in crafting copy that deals directly with any key concerns already present in the mind of a customer.

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Copywriting: How to tip the scale so customers act

July 10th, 2014 1 comment

When writing copy for promotions, content and advertising, many writers tend to be pulled between two possible directions: creativity on one side, and communication on the other.

How can I be creative and still effectively communicate the ideas I have?

 

Think like the customer

Creativity and communication are not the two opposing forces in the customer’s mind. The customer is weighing these two decisions:

  • What is the value of this?
  • How much will it cost me?

“Essentially the prospect, even if at a subconscious level, engages in elementary math: VfAc - CfAc, which is to say, they subtract the perceived cost force from the perceived value force,” said Flint McGlaughlin, Managing Director, MECLABS, parent company of MarketingExperiments.

This idea is illustrated in the heuristic below to help you see the net force of the value proposition:

 value-proposition-foce

 

You can dive deeper into the above heuristic in the MECLABS Value Proposition Development Course.

In this MarketingExperiments Blog post, we’ll take a look at two key copy elements – one very close to an actual purchase and another much farther up the funnel – and see what value and cost factors the customer might be considering.

 

Key Copy Element #1. Button copy

 

“Select Lodging” vs. “See All Rentals”

 

The button copy on the right achieved a 427% higher clickthrough rate than the button copy on the left.

This was not a single-factor test; other elements were changed on the landing pages that likely affected conversion rate, as well. You can see those in the full MarketingSherpa webinar replay of “Web Optimization: How one company implements an entire testing strategy every day.”

But, this is still a good example of weighing value and cost.

“Select Lodging” subtly implies more cost. The language puts the monkey on the customer’s back. Now, the prospective customer has to take the time to look through different options. Cost is about much more than just money. In this case, the cost is time (a form of mental cost). Of course, this button also implies the cost of actually purchasing the lodging (a form of material cost).

On the flipside, “See All Rentals” implies more value. Nothing is asked of the prospective customer. Instead, there is an offer to the prospective customer. Essentially, the copy conveys there are many rentals for the customer to view.

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