Sustained profitability has no greater driver than customer lifetime value. Maximising the lifetime value of each customer or indeed enquirer requires conversion rates to be maximised. Maximising conversion rates in turn requires a strong value proposition - a compelling answer to the question - ''why should I buy your product rather than that of your primary competitor?' Few businesses can answer such a question concisely and in a way that maximises conversion rates. I research, develop, and advise on implementing strategies to identify and leverage opportunities, and eliminate complex problems. As an advisor, company director, advisory board member and mentor, I work with organisations of all shapes and sizes to drive the consumer and business behaviour that maximises performance with strategies that minimise costs. Eliminating marketing waste marketing s a passion. Over 30 years, I have learned that too many organisations spend too much on initiatives that are not cost-efficient. My primary expertise includes: • Research – including customer insights and behavioural economics. • Brand – including defining, creating and communicating a brand. • Marketing – addressing -product, experience, pricing, and distribution. • Communication – addressing both traditional and digital channels. • Business development – systematic B2B business generation. I am passionate about identifying and implementing ethical strategies – driven by objective, critical and lateral thinking. ESG can and should be more than an acronym used in annual reports.

1. Develop a unique
value proposition
that maximises
conversion rates
CONSUMER INSIGHTS

2. One of the first questions I ask a prospective client is – ‘Why
would I buy your product ahead of that of your nearest
competitor?’
This question asks a lot more than simply – ‘What is your
value proposition?’ A value proposition is a statement of the
value a product offers
The reasons I might purchase one product ahead of another
relates to a point of difference – a unique value proposition –
one that offers tangible value to me – the purchaser.

3. The question - ‘Why would I buy your product ahead of that of
your nearest competitor?’ is among the most important
question for any business.
It directly impacts conversion rates and as such:
• The expenditure on generating enquiries.
• The return on that expenditure generating enquiries
• The return on the sales efforts – and -
• Ultimately sales and profitability.

4. More often than not, the responses I get to this question from
prospects amount to – better service or superior quality.
The problems with responses of this type are:
• The qualitative nature of words like ‘better’ and ‘superior.’
• The intangible nature of words like ‘service’ and ‘quality.’
• The fact that anybody can, and most do, say such things.
• The reality that such claims have diminishing credibility.

5. The answer to the question ‘Why would I buy your product
ahead of that of your nearest competitor?’ should ideally be:
• Concise and easy to articulate and understand.
• Entirely relevant to customer needs and wants.
• Unique to the business and or its product.
• Tangible and demonstratable to the customer.
• Sustainable and, as such relevant over time.
• Related to a factor or factors other than price.

6. In my experience, too few businesses devote enough time and
expertise to answering the question - ‘Why would I buy your
product ahead of that of your nearest competitor?’
Too few businesses spend the time understanding their
market, understanding their competition, understanding their
product and then refining their product to a point where the
answer to this question is clear and marketable.
This results in higher marketing costs and lower sales.

7. Examples of poor ‘points of difference’ include:
• We offer the best value for money.
• We offer a more reliable product.
Assuming they are true, can be demonstrated and are in line
with customer needs - better alternatives might include:
• Our product has 20% more capacity for the same outlay.
• We offer a lifetime guarantee and free service for 10 years.
Being relevant to customer needs is, of course, critical if
conversion rates are to be maximised.

8. THE INSIGHTS
1. Look beyond your value proposition to a unique and tangible
point of difference.
2. Place the highest possible priority on conversion rates as a
key to maximizing the return on marketing expenditure.
3. Don’t tender for business or engage in the sales process until
a unique tangible point of difference is established.

9. To find out more - visit...
www.djohncarlsonesq.com
Or email me at...
johnc@djohncarlsonesq.com