Do You Have the Right Value Proposition?

ACCESS WEBINAR RECORDING

Todd Lebo, Senior Director of Content, MECLABS Austin McCraw, Senior Editorial Analyst, MECLABS
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Todd Lebo
Senior Director of Content, MECLABS Todd.Lebo@meclabs.com @ToddLebo

Austin McCraw
Senior Editorial Analyst, MECLABS Austin.McCraw@meclabs.com

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An Experiment

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Experiment: Background

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1306

Research Notes: Background: Provides end-to-end market solutions for small- and medium-sized businesses. Goal: Increase the email capture rate of an online form. Primary research question: Which page will obtain the most form submissions? Approach: A/B multi-factorial split test that focused on increasing overall communication of the value proposition.

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Experiment: Control

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Experiment: Treatment

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Experiment: Side-by-side
Control Treatment

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Experiment: Results
The optimized version increased captured emails by 201.3%

201% increase in total leads

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Experiment: Results
451%
Essentially, we applied a slightly modified version of the treatment across other landing pages and PPC campaigns, to see significant gains.

302%

257%

28%

603%

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WHY DO PEOPLE SAY YES?

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What Made the Treatment Design So Successful?

Perceived Cost

Perceived Value

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POINT 1: We must have a clear understanding of the role of the Value Proposition.

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Guess the Movie

Mission Statement: The things we think and do not say

Fewer clients Stronger relationships with clients Be honest with clients, be honest with yourself

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Value Prop Discovered

Key Principles

Your Value Proposition is discovered, not derived.

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EXAMPLE: GE (B2B)

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EXAMPLE: CATERPILLAR (B2B)

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Audience Question

How would you express your value proposition?

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My company has a value proposition that is:

Formalized: it is documented for all employees Informal: most employees know it, but it is not documented Not developed: we need to discover our value proposition

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Value Prop Examples

Question: Whats your value proposition?
Power leading companies with advanced stream and gas turbine technology. We empower your software decisions. I don't sell products and services, I sell results; my guarantee. We are the leading technology provider. Get found online. This site has what the person is looking to find.

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Value Proposition Question

Key Principles
The answer to the question, What is your value proposition? can only be discovered by answering yet another question: If I am your ideal prospect, why should I buy from you rather than any of your competitors?

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What is a Value Proposition?

Key Principles

Value Proposition Question: If 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.

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What is a Value Proposition?

VP Statement
Value Proposition: Because Email Summit is the worlds largest1 gathering of marketers, aimed at overcoming your top2 email challenges with actionable3, vendor-agnostic4 training grounded in rigorous5 research.
1. 5,250 marketers attended over 7 c years 2. Challenges based on 2,735 marketers surveyed, activity worksheets 3. 4 attendee activity sessions, 6 worksheets with a program that includes 44 speakers, 21 case studies, and 5 expert panels 4. 0 sales presentations from the stage 5. 12 years of extensive email research

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Example: Value Proposition

Claims of Exclusivity
Value Proposition: Because Email Summit is the worlds largest1 gathering of marketers, aimed at overcoming your top2 email challenges with actionable3, vendor-agnostic4 training grounded in rigorous5 research.
1. 5,250 marketers attended over 7 years 2. Challenges based on 2,735 marketers surveyed, activity worksheets 3. 4 attendee activity sessions, 6 worksheets with a program that includes 44 speakers, 21 case studies, and 5 expert panels 4. 0 sales presentations from the stage 5. 12 years of extensive email research

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Example: Value Proposition

Modifiers and Evidentials
Value Proposition: Because Email Summit is the worlds largest1 gathering of marketers, aimed at overcoming your top2 email challenges with actionable3, vendor-agnostic4 training grounded in rigorous5 research.
1. 5,250 marketers attended over 7 years 2. Challenges based on 2,735 marketers surveyed, activity worksheets 3. 4 attendee activity sessions, 6 worksheets with a program that includes 44 speakers, 21 case studies, and 5 expert panels 4. 0 sales presentations from the stage 5. 12 years of extensive email research

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POINT 2:

We need to understand the relationship between the core and the derivative value propositions.

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The Value Proposition Spectrum

The Value Proposition Spectrum
PROCESS-LEVEL
Question: Why should your ideal prospect buy from you rather than any of your competitors? Question: Why should [PROSPECT A] buy from you rather than any of your competitors? Question: Why should [PROSPECT A] buy this product rather than any other product?

PRODUCT

PRODUCT-LEVEL
#1 #1

PRODUCT

PRODUCT

PRODUCT

#2

#2

PROSPECT-LEVEL
PRODUCT PRODUCT

#3

#3

Primary Value Proposition

PRODUCT

PRODUCT

#4

#4

Question: Why should [PROSPECT A] click this PPC ad rather than any other PPC ad?

Prospect B
PRODUCT PRODUCT

#1

#4

1
PRODUCT

#2

PRODUCT

#3

2 3
Conversion steps associated with a specific product

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Core vs. Derivative Value Propositions

1.

Key Principles
Underneath a value proposition is an even more fundamental question.

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The Fundamental Question

Central Value Proposition: If I am your ideal prospect, why should I buy from you rather than any of your competitors?

Fundamental Question: If I am [a particular prospect] why should I [take this action] rather than [this/these other action(s)]?

Central Value Proposition: If I am your ideal prospect why should I buy from you rather than (buy from) any of your competitors ?
[take this action] [this other action]

[a particular prospect]

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Core vs. Derivative Value Propositions

1. 2.

Key Principles
Underneath a value proposition is an even more fundamental question. Understanding this fundamental question gives us the flexibility to modify and create more specific Derivative Value Propositions at three essential levels:
A. Prospect level B. Product level C. Process level

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Example Derivative Value Propositions

[a particular prospect] [take this action]

Prospect Level: If I am a CTO, why should I buy from you rather than any of your competitors?
[this other action]

Product Level: If I am a CTO, why should buy this collaboration solution rather than any other collaboration solution?
[this other action]

[a particular prospect]

[take this action]

[a particular prospect]

Process Level: If I am a CTO, why should I click this webinar invite rather than any other webinar invite?
[this other action]

[take this action]

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The Value Proposition Spectrum

The Value Proposition Spectrum
PROCESS-LEVEL
Question: Why should your ideal prospect buy from you rather than any of your competitors? Question: Why should [PROSPECT A] buy from you rather than any of your competitors? Question: Why should [PROSPECT A] buy this product rather than any other product?
PRODUCT

PRODUCT-LEVEL
#1 #1

PRODUCT

PRODUCT

PRODUCT

#2

#2

PROSPECT-LEVEL
PRODUCT PRODUCT

#3

#3

Primary Value Proposition

PRODUCT

PRODUCT

#4

#4

Question: Why should [PROSPECT A] click this PPC ad rather than any other PPC ad?

Prospect B
PRODUCT PRODUCT

#1

#4

1
PRODUCT

#2

PRODUCT

#3

2 3
Conversion steps associated with a specific product

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POINT 3: We need to understand how to intensify the force of the value proposition.

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HOW WOULD YOU IMPROVE THIS VALUE PROPOSITION?

Value Proposition: GE works by powering leading companies with advanced stream and gas turbine technology.

Tell me how GE can help my business

Select the highlighter tool and place a mark in the box next to what you think should be changed in this value proposition

Tell me what is different about GE turbines Tell me why GE is the best company to purchase from Its fine the way that it is. I wouldnt change anything

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The Force of a Value Proposition

Key Principles

The force of a value proposition can be measured by four essential elements of the offer:
Appeal How much do I desire this offer? Exclusivity Where else can I get this offer? Credibility Can I trust your claims? Clarity What are you actually offering?

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Submitted Value Proposition

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Submitted Value Proposition

Audience Submission: Because we provide the only up-to date research report on e-commerce checkout usability that includes highly actionable visuals and case studies
Appeal
1 2 3 4 5

APPEAL EXCLUSIVITY CREDIBILITY CLARITY

Clarity 2

4Exclusivity 1

Credibility

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SUBMITTED VALUE PROPOSITION

Value Proposition: GE works by powering leading companies with advanced stream and gas turbine technology.

Appeal

1 Clarity 2 0 0 Exclusivity

Credibility

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SUBMITTED VALUE PROPOSITION

1 2 3 4 5

APPEAL EXCLUSIVITY CREDIBILITY

Value Proposition: We're recognized as one of the leading worldwide providers of IP-based communications services to businesses. We also have the nation's fastest mobile broadband network and the largest international coverage of any U.S. wireless carrier, offering the most phones that work in the most countries; the largest Wi-Fi network in the United States based on branded and operated hotspots.

CLARITY 5 Appeal

Clarity4

4Exclusivity

Credibility

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Experiment: Background (from beginning)

Experiment ID: (Protected) Location: MarketingExperiments Research Library Test Protocol Number: TP1306

Research Notes: Background: Provides end-to-end market solutions for small- and medium-sized businesses. Goal: Increase the email capture rate of an online form. Primary research question: Which page will obtain the most form submissions? Approach: A/B multi-factorial split test that focused on increasing overall communication of the value proposition.

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Experiment: Control

Can you find the value proposition?

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Experiment: Control
After review and testing, the researchers at MECLABS identified the following value proposition for this offer. Value Proposition: Because we have the most comprehensive1 and accurate2 lead database.
1. Includes access to over 210 million U.S. consumers, 16 million U.S. businesses, and 14 million executives. 2. We have a team of 600 researchers that verify the data daily and make over 21 million verification calls a year, 80,000 calls a day.

Lets see how this intensified value proposition was translated to the webpage

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Experiment: Intensifying the force

Value Proposition: Because we have the most comprehensive1 and accurate2 lead database.
1. Includes access to over 210 million U.S. consumers, 16 million U.S. businesses, and 14 million executives. We have a team of 600 researchers that verify the data daily and make over 26 million verification calls a year.

2.

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Experiment: Before and after

Before After

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Experiment: Results
201% increase in total leads

The optimized version increased captured emails by 201.3%

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Summary
POINT 1: We must have a holistic understanding of the role of the Value Proposition. POINT 2: We need to understand the relationship between the core and the derivative value propositions. POINT 3: We need to understand how to intensify the force of the value proposition
5 Appeal
1 2 3 4 5

APPEAL EXCLUSIVITY CREDIBILITY CLARITY Credibility Clarity4 0 4Exclusivity

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Upcoming Accelerate! Sessions: July 11th How to Optimize Your Marketing Tactics with a Strong Value Proposition Get Started Crafting an Effective Value Proposition: Download the Value Prop Worksheet from MarketingExperiments Earn up to 20,000 points for attending Accelerate! Sessions: Register for Cisco Rewards Stay Connected to Cisco Accelerate! Accelerate! Space

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Thank You!