Discovering Your Value Proposition

Discovering Your Value Proposition:6 Steps to standing out in a crowded marketplace #webclinic

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Today’s team Dr. Flint McGlaughlin Solomon Osiatynski Managing Director Research Analyst #webclinic

Experiment: Background Caution, politically sensitive ! material ahead… Please bear in mind that MECLABS is not supporting any single political philosophy. We are simply trying to identify transferrable principles that can help marketers on any side of the political spectrum. 4 #webclinic

Experiment: Background Experiment ID: Heritage Email Test Location: MarketingExperiments Research Library Test Protocol Number: TP2085Research Notes: Background: The company is a non-profit conservative policy think-tank funded primarily through individual donors. Goal: To increase the size and number of donations. Primary research question: Which email will generate the highest amount of revenue? Approach: A/B multifactor split test #webclinic

Experiment: Control Control - Email #webclinic

Experiment: Treatment Treatment- Email #webclinic

Experiment: Side-by-side Treatment Control 8 #webclinic

Experiment: Results 14.66% Increase in average donation size The new email’s donation rate increased by 14.66% Average Donation Relative Statistical Level Design ($) Difference of Confidence Control $36.48 - - Treatment $41.82 14.66% 95%  What you need to understand: By focusing on what the organization actually did with the donated money in the previous year, the treatment was able to increase clickthrough rate by 20%, and average donation size by 14.66%. 9 #webclinic

Experiment: Background Experiment ID: Gates Energy Exploration & Extraction Test Location: MarketingExperiments Research Library Test Protocol Number: TP1576Research Notes: Background: A large energy company seeking to increase whitepaper download leads Goal: To increase the number of leads Primary Research Question: Which treatment will generate the most whitepaper downloads? Approach: A/B multifactor split test 10 #webclinic

Experiment: Control Control (Step 1) Click here 11 #webclinic

Experiment: Control Control (Step 2) Step 2 gives visitors 3 equally weighted call-to- actions for report downloads. 12 #webclinic

Experiment: Treatment Treatment 13 #webclinic

Experiment: Side-by-side Control (Step 1) Treatment 14 #webclinic

Experiment: Results 245% Increase in conversion rate The new CTA process design improved conversion rate by 245.6% CR Relative Difference Statistical Confidence Control 1.3% - - Treatment 4.6% 245.6% 99%  What You Need and adding a simple radio buttonamount of friction in the CTA process to Understand: By reducing the CTA to the first step, the team at Gates was able to increase conversion by 245%. 15 #webclinic

What was the difference? Treatment Control 16 #webclinic

What was the difference? Control (Step 1) Treatment 17 #webclinic

Nf = pVf - pCf Cost Force Value Force 18 #webclinic

How we think about value propositionF Key Principles Value Proposition Heuristic P = (Cl ⁞ Cr) Nf = pVf - pCf Vf = (Ap/Ex) Cf = (Mt + Mn) Wherein: Nf = Net Force of the Value Proposition Cr = Credibility Vf = Gross Force Of the Value Ap = Appeal Cf = Gross Force of the Cost Ex = Exclusivity P = Perceived Mt = Material Cl = Clarity Mn = Mental 19 #webclinic

Today’s Question How do you formulate a value proposition in ? highly competitive marketplaces? • Politics? • Insurance? • Retail? • Non profit? • Resale? • Financial Planning? • Energy? 20 #webclinic

PART 1: A Foundational Understanding of the Term ‘Value Proposition’ 21#webclinic

2012 SURVEY DATASurvey Question: Are youconfident that eachmember of your No 48%marketing team can Yes 52%clearly and succinctlystate your company (orproduct) valueproposition? Source: ©2012 MarketingSherpa Website Optimization Benchmark Survey Methodology: Fielded April 2012, N=547 #webclinic

2012 SURVEY DATA Yes 29%Survey Question: Hasyour organization testedyour value proposition(s)? No 71% Source: ©2012 MarketingSherpa Website Optimization Benchmark Survey Methodology: Fielded April 2012, N=1,156 #webclinic

Research Overview Ongoing literature review of: • More than 1,100 academic articles • 20 popular authors including: • Starch • Hopkins • Reeves • Kotler • Porter • Lanning • Review spanning from 1890s to present 24 #webclinic

Research OverviewDaniel Starch publishes first Michael Lanning coinsadvertising textbook. Defines the term “valueadvertising as “the presentation of a Rosser Reeves publishes Phillip Kotler publishes the definitive proposition,” applying itproposition to the people in such a influential book that established textbook on marketing used in colleges to the field of businessmanner as to attempt to induce them what he calls the “Unique Selling today. Carries over Reeves’ notion of management.to act upon the proposition.” Proposition (USP)” “Unique Selling Proposition (USP)” 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s Other Authors use the Claude Hopkins David Ogilvy publishes Michael Porter publishes very terms “value publishes very influential 35 rules of advertising influential business books and proposition”, “unique book called “Scientific which coins the concept academic articles on the topic of selling proposition”, Advertising”. Carries over “Basic Selling Proposition strategic differentiation. “point of difference”, Walter Scott “point-of-parity”, notion of “proposition” at (BSP)” publishes first book the center of all ‘”differentiation” with about the psychology advertising. little-to-no universal of advertising, meaning or alignment. generating a new interest in the science of advertising. 25 #webclinic

Research Overview 31% 63% 21% Conversion Conversion Conversion 137% 21% ConversionBusiness Software Suite Conversion#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/Business 29% 54% Conversion Conversion 109% Conversion 201% Conversion 100% Conversion 97% Conversion 15% Conversion 124% Conversion 26 #webclinic

What is a value proposition? If I am your ideal prospect, why should I buy from you rather than any of your competitors? 27 #webclinic

What is a value proposition? Value Proposition Question: If I am your ideal prospect, why should I buy from you rather than your competitors? 1. You are fundamentally answering a first-person question posed in the mind of your customers. 2. A value proposition focuses on a specific customer segment. This requires you to consider who you are not going to serve and the associated tradeoffs. 3. A value proposition has a specific action in mind. It is seeking to answer “why” for a specific “what.” 4. A value proposition must differentiate you from your competitors. In at least one way, you must have an “only” factor. 28 #webclinic

The Challenge of a Competitive Environment 1. The internet is a unique phenomenon in the human experience. Its evolution has impacted commerce on multiple levels. Here is an important one: a) In the past weak competitors could survive via their geographic proximity. Their value proposition was derived from nearness which translated into convenience, time-savings, etc. b) However, the internet has positioned many of us just one click away from our best competitor. 2. If you are not unique in at least one dimension of value, then you are don’t have the potential of being the best solution. 3. If you are not the best solution, then why would you expect anyone else to select you – you are just surviving on pockets of ignorance. #webclinic

Today, we will walk through 6 ways to stand out in a highly competitive market place. 30#webclinic

PART 2: 6 Ways to Differentiate your Marketing in a Crowded Marketplace 31#webclinic

6 Ways to Differentiate your Value Prop Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” 32 #webclinic

TECHNIQUE #1: Where is the “only-factor?” 33 #webclinic

TECHNIQUE #1: Focus on your “Only-Factor” Value Proposition Heuristic P = (Cl ⁞ Cr) Nf = pVf - pCf Vf = (Ap/Ex) Cf = (Mt + Mn) • An appealing offer without exclusivity has its force diluted by the competing options. • An exclusive offer without appeal has its force undermined by a lack of attraction. 34 #webclinic

TECHNIQUE #1: Focus on your “Only-Factor” Powerful Only-Factor Appeal Exclusivity #webclinic

TECHNIQUE #1: Focus on your “Only-Factor” Not This {Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software. Fully Integrated. Free Trial www.XXXXXXXXXX.com/XXXXXXXX But This XXXXXXXXX Software Suite #1 On-Demand. 6459+ World Clients 22% Award-Winning Solution. Free Trial www.XXXXXXXXXX.com/XXXXXXXX 36 #webclinic

TECHNIQUE #1: Focus on your “Only-Factor” Not This But This Support [ORG] with GET THE ONLY CARD THAT Every Purchase APPLY NOW 63% 37 #webclinic

6 Ways to Differentiate your Value Prop Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” TECHNIQUE #2: Provide Clear Evidentials 38 #webclinic

TECHNIQUE #2: Provide Clear EvidentialsF Key Principles Value Proposition Heuristic P = (Cl ⁞ Cr) Nf = pVf - pCf Vf = (Ap/Ex) Cf = (Mt + Mn) • Value accepted is contingent upon value believed. Value believed is contingent upon value understood. 39 #webclinic

TECHNIQUE #2: Provide Clear Evidentials Do our offers sound? like this? 40 #webclinic

TECHNIQUE #2: Provide Clear Evidentials Not this… How clear or credible ? is this copy? 41 #webclinic

TECHNIQUE #2: Provide Clear Evidentials But this. 201% 42 #webclinic

TECHNIQUE #2: Provide Clear Evidentials Sample Evidentials The Objective: To codify essential text bytes that support claim that can be used stategically as bulleted information 43 #webclinic

6 Ways to Differentiate your Value Prop Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” TECHNIQUE #2: Provide Clear Evidentials TECHNIQUE #3: Strengthen the process-level value propositions 44 #webclinic

THE VALUE PROPOSITION SPECTRUM The Value Proposition Spectrum PROCESS-LEVEL Question: Why should your ideal prospect buy PRODUCT-LEVEL from you rather than any of your competitors? PRODUCT PRODUCT #1 #1 Question: Why should [PROSPECT A] buy from PRODUCT PRODUCT #2 #2 you rather than any of your competitors? PROSPECT-LEVEL Question: Why should [PROSPECT A] buy this PRODUCT PRODUCT #3 product rather than any other product? #3 Primary Value Proposition Question: Why should [PROSPECT A] PRODUCT PRODUCT click this PPC ad rather than any other #4 #4 PPC ad? Prospect B PRODUCT PRODUCT #4 #1 1 PRODUCT PRODUCT #2 #3 2 3 Conversion steps associated with a specific product #webclinic

Can you identify the process-level value propositions? Audience Submitted Page 46 #webclinic

TECHNIQUE #3: Strengthen the process-level VP Not this… But this 357% IN MONTHLY CLIENTS 331% IN CONVERSION 90% IN CONVERSION 99% IN CONVERSION 47 #webclinic

6 Ways to Differentiate your Value Prop Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” TECHNIQUE #2: Provide Clear Evidentials TECHNIQUE #3: Strengthen the process-level value propositions TECHNIQUE #4: Build a Compelling Narrative 48 #webclinic

TECHNIQUE #4: Build a Compelling Narrative SUB STORY Climax Climax Falling Act. Rising Act. Resolution /Exposition Exposition Resolution ACT 1 ACT 2 ACT 3 Beginning (The Setup) Middle (The Confrontation) End (The Resolve) People’s thoughts tend to arrange themselves in story, therefore understanding your visitor’s thought sequence comes down to understanding the basic structure of a story. Telling your story can be a powerful device for communicating a value proposition. 49 #webclinic

TECHNIQUE #4: Build a Compelling Narrative Not this… Copy is a simple set of instructions to accomplish the task …but this of ordering. LOGO Copy integrates story of how beers are selected to achieve congruence. 14% 50 #webclinic

6 Ways to Differentiate your Value Prop Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” TECHNIQUE #2: Provide Clear Evidentials TECHNIQUE #3: Strengthen the process-level value propositions TECHNIQUE #4: Build a Compelling Narrative TECHNIQUE #5: Utilize Value-Laden Images 51 #webclinic

TECHNIQUE #5: Utilize Value-Laden Images ? Where is the value in this image? 52 #webclinic

TECHNIQUE #5: Utilize Value-Laden Images Not this… Stock image of customer service rep But this… Image of well-known company founder. 35% #webclinic

TECHNIQUE #5: Utilize Value-Laden Images Not this… Clever/cute picture of a dog carrying a newspaper But this… Actual images of the newspaper front pages #webclinic

TECHNIQUE #5: Utilize Value-Laden Images Not this (General Icon)… But this (actual screenshot)… 43% 55 #webclinic

6 Ways to Differentiate your Value Prop Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” TECHNIQUE #2: Provide Clear Evidentials TECHNIQUE #3: Strengthen the process-level value propositions TECHNIQUE #4: Build a Compelling Narrative TECHNIQUE #5: Utilize Value-Laden Images TECHNIQUE #6: Link your Brand Equity 56 #webclinic

ON VALUE PROPOSITION AND BRAND 1. Brand is the aggregate experience of the value proposition – as the customer experiences this value, they develop a belief about its source. 2. The brand awareness is a result; the value proposition is a cause. The strength of the brand is derived not from declaration, but through expectation. 3. The notion of a brand promise is fundamentally flawed. The point of the brand is not to make a promise, but to create an expectation. 4. Marketers need more nuance. Our work does not entail forcing conclusions, but rather offering reasons which lead to an “inevitable conclusion”. 5. Effective brand strategy is implicit rather than explicit; it is achieved not with remonstration but by implication. #webclinic

Summary: Putting it all togetherF Key Principles Value Proposition Heuristic P = (Cl ⁞ Cr) Nf = pVf - pCf Vf = (Ap/Ex) Cf = (Mt + Mn) Wherein: Nf = Net Force of the Value Proposition Cr = Credibility Vf = Gross Force Of the Value Ap = Appeal Cf = Gross Force of the Cost Ex = Exclusivity P = Perceived Mt = Material Cl = Clarity Mn = Mental 58 #webclinic

Summary: Putting it all together Techniques for getting your value proposition to stand out in a crowded market space TECHNIQUE #1: Focus on your “Only-Factor.” TECHNIQUE #2: Provide Clear Evidentials TECHNIQUE #3: Strengthen the process-level value propositions TECHNIQUE #4: Build a Compelling Narrative TECHNIQUE #5: Utilize Value-Laden Images TECHNIQUE #6: Link your Brand Equity 59 #webclinic

Live Optimization 61#webclinic

Live Optimization Lakeshore RealtyPrimary Objective: To capturereal estate clients, focused inthe North Lake Tahoe marketPrimary Traffic: SEO &Social MediaValue Proposition: “We are thebest source of news andinformation for Incline Village &North Lake Tahoe Real Estatecommunity”Page URL:http://bit.ly/q8hg6i 1

Live Optimization Mutual of OmahaPrimary Objective: Getleads for term lifeinsurancePrimary Traffic: AdWordsand MSN Keywords: TermLife Insurance, CompareLife Insurance, Term LifeRatesValue Proposition: “Wehave the lowest rates inthis area and well give youa free info booklet to findout more information.”Page URL: bit.ly/MJ0jY3 1

Lakeshore Realty List WarehouseLive OptimizationPrimary Objective: togain leadsPrimary Traffic: PPC, opt-in emailmarketing, email marketing lists,email marketing providersValue Proposition: “Ourindustry knowledge”Page URL: http://bit.ly/OLPwNu 1

Live OptimizationPrimary Objective: Collect LakeshorePlus Union Realtyemail lead convert on topspotlight programsPrimary Traffic: Email, PPC -union discounts, Union Plus,referrals from union sitesValue Proposition: “Union Plusnegotiates valuable & unique benefitson behalf of union families with built-inprotections and enhancements.”Page URL: http://bit.ly/aR8GX 1

Live Optimization Lakeshore Realty Top DogFoodPrimary Objective:eBook salesPrimary Traffic: OrganicSEO / dog raw food diet ,raw dog food diet, rawfood dogValue Proposition:“Inside information froma dog who has beenthrough all the diets”Page URL: http://bit.ly/NXCct8 1

Live Optimization Lakeshore Realty INetUPrimary Objective: Leadgeneration formcompletion or call inPrimary Traffic: SEO (PCIhosting, PCI complianceservices, PCI compliantweb hosting)Value Proposition: “INetU deliverssafe, trusted and totally managedhosting solutions”Page URL: http://bit.ly/QFMmjE 1

Lakeshore Realty Tavano TeamLive OptimizationPrimary Objective:Contact us to discusscustomer needs andsend them an estimatePrimary Traffic: SEO &email campaignsValue Proposition: “Offermobile friendly websitefor NetSuite platform”Page URL: http://bit.ly/QzidAh 1

Live Optimization Lakeshore Realty Papa Steve’sPrimary Objective: tosell a box of protein barsPrimary Traffic:facebook ads, organicsearch, blog posts, wordof mouth, retail trafficValue Proposition: “A 20gram whey protein barthat is all natural thatactually tastes reallygood”Page URL: http://bit.ly/gAJwQW 1

Live Optimization Lakeshore Realty Tateberry Ltd.Primary Objective: toget a prospect to registerfor a free quotationPrimary Traffic:Adwords; Homeextension quotationValue Proposition: “Freequotation, fixed priceguarantee, easy paymentterms and good qualityworkmanship”Page URL: http://bit.ly/MooOZ3 1

Live Optimization Lakeshore Realty PC MediaOnePrimary Objective: takeaction to choose planPrimary Traffic: Organic,CraigslistValue Proposition:“Custom web design andhosting for one lowmonthly rate.”Page URL: http://bit.ly/QGejb0 1

Call for Research Partners 109% 201% Conversion Conversion 137% Conversion 124% Conversion 54% Conversion Our average test last year inside one of the world’s largest banks produced a 108% conversion increase. This is not uncommon – many of our partners see triple-digit sales increases. To apply for a research partnership, fill out the post-clinic survey and check “research partnership.” 72 #webclinic

MarketingExperiments.com/subscribe 73#webclinic

Discovering Your Value Proposition

by MarketingExperiments on Aug 09, 2012

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Discovering Your Value Proposition Presentation Transcript