of Your Value Proposition (in 5 Simple Steps) Austin McCraw Senior - - PowerPoint PPT Presentation

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of Your Value Proposition (in 5 Simple Steps) Austin McCraw Senior - - PowerPoint PPT Presentation

Mar 18, 2023 203 likes •756 views

How You Can Use Email to Discover the Essence of Your Value Proposition (in 5 Simple Steps) Austin McCraw Senior Editorial Analyst MECLABS Group Introduction Austin McCraw Senior Editorial Analyst MECLABS Austin McCraw joined the MECLABS

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How You Can Use Email to Discover the Essence

  • f Your Value Proposition (in 5 Simple Steps)

Austin McCraw Senior Editorial Analyst MECLABS Group

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2

Austin McCraw Senior Editorial Analyst MECLABS

Austin McCraw joined the MECLABS research team in 2007 after graduating from University of Florida's college of Journalism and

  • Communications. Since then, he has reviewed over 2,500

experiments, written over 300 hours of training, and developed five professional certification courses on the topics of Offer Response Optimization and Value Proposition. Currently, he works directly with Dr. Flint McGlaughlin, Founder and Director of MECLABS, on his academic and commercial writing projects. He lives in Florida with his wife and three sons.

@McOptimize

Introduction

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PART I:

AN EXPERIMENT

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Background: Company provides technology and product supply to the oil and gas industry. For this experiment, they were making a specific segment (drilling engineers) of their opt-in list aware of an upcoming conference. Goal: To determine the most effective point of value Primary research question: Which value category (Overcoming challenges or generating results) will generate the most response? Approach: A/B split test (variable cluster) Experiment ID: Protected Location: MarketingExperiments Research Library Test Protocol Number: TP2067 Research Notes:

Experiment: Background

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Experiment: Background

Which emphasis will generate the most response?

Option #1

Overcoming Challenges

Option #2

Generating Revenue

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Version A: Overcoming Challenges

  • “…researching to find

solutions to the monitoring and technology issues you face…”

  • “How can deepwater risk be

reduced?”

  • “How can you adjust

parameters based on new downhole data?”

  • “What are the newest

insights around stick-slip mitigation?”

Experiment: Version A

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Version B: Generating Results

  • “conduct in-depth field tests to

leverage the latest technology… recent results will be presented”

  • “…improved penetration rates

and higher quality wellbores…”

  • “...outperforming conventional

drilling BHA’s by more that 350%...”

  • “…10% improvement on

ROP…”

Experiment: Version B

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Subscription path CTR Relative diff

  • v. control

Version A (Overcoming Challenges) 20.93% 17.05% Version B (Generating Results) 17.88%

  • 17% Increase in clickthrough rate

Version A generated a 17.05% higher clickthrough rate than Version B

What you need to understand: The email message focused on overcoming

challenges outperformed the email focused on results, leading us to conclude that for this segment there is more value in obtaining the solution to problems.

Experiment: Results

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Experiment: Results

The greater gain was new knowledge we

  • btained about the

customer.

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FKey Principles

  • 1. The goal of a test is not simply to get a lift, but rather to get a

learning.

What you Need to Understand

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FKey Principles

  • 1. The goal of a test is not simply to get a lift, but rather to get a

learning.

  • 2. We should always strive to better understand our customer,

and in particular, to understand the essence of our value proposition.

What you Need to Understand

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The Expression

(The Message)

Uncovering the Essence

Testing

(Value Proposition)

The Essence

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FKey Principles

  • 1. The goal of a test is not simply to get a lift, but to get a learning.
  • 2. We should always strive to better understand our customer,

and in particular, to understand the essence of our value proposition.

  • 3. Email is one of the most effective ways to quickly test and

discover your value proposition.

What you Need to Understand

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Why is email so great for testing?

  • 1. Ease of changes
  • 2. Large sample size
  • 3. Highly competitive environment
  • 4. We already have to do it

1 2 3 4

Testing Value Proposition with Email

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Our Experiments

SL #2: 5 horrifying mistakes designers make with color SL #1: How to effectively use color on a website SL #2: Does content marketing really work? SL #1: How to Optimize your Content Marketing

How-to Discovery How-to Discovery

47.9% 15.9%

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Today, I am going to walk you through a simple 5-step method for using email to test your value proposition.

Today’s Focus

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WARNING: Email testing is useless if you are NOT willing to be a:

miserable

failure

Important Warning

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PART II:

5 SIMPLE STEPS FOR USING EMAIL

TO TEST VALUE PROPOSITION

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STEP 1: Identify Potential Claims of Value

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STEP #1: Identify Potential Claims of Value

VP #1 VP #2 VP #3 VP #4 VP #5 VP #6 SL 1-1 SL 2-1 SL 3-1 SL 4-1 SL 5-1 SL 6-1 SL 1-2 SL 2-2 SL 3-2 SL 4-2 SL 5-2 SL 6-2 BC-1 BC-2 BC-3

Top Claims of Value

Subject Line (SL) Testing of Value Proposition Body Copy (BC) Testing of Value Proposition

Value Proposition Testing Process

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STEP #1: Identify Potential Claims of Value

Imagine for a moment, that you are selling mortgages. What would be potential claims of value one could make?

  • 1. Reliability
  • 2. Lowest Rates
  • 3. Easy Process
  • 4. Brand Name
  • 5. Payment Plan Options
  • 6. Reduced Anxiety
  • 7. Service Quality
  • 8. Community Involvement
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STEP 2: Estimate the Force of Each Claim

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STEP #2: Estimate the Force of Each Claim

VP #1 VP #2 VP #3 VP #4 VP #5 VP #6 SL 1-1 SL 2-1 SL 3-1 SL 4-1 SL 5-1 SL 6-1 SL 1-2 SL 2-2 SL 3-2 SL 4-2 SL 5-2 SL 6-2 BC-1 BC-2 BC-3

Top Claims of Value

Subject Line (SL) Testing of Value Proposition Body Copy (BC) Testing of Value Proposition

Value Proposition Testing Process

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STEP #2: Estimate the Force of Each Claim

Appeal Exclusivity

Appeal – “I want this” Exclusivity – “I can’t get this anywhere else”

  • -
  • +

+ - + +

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STEP #2: Estimate the Force of Each Claim

Claims of Value

Appeal Exclusivity

Reliability Payment Options Lowest Rates Brand Name Payment Plan Options Reduced Anxiety Service Quality

+

  • ?

+ +

?

+ + + +

?

  • +
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STEP #2: Estimate the Force of Each Claim

Claims of Value

Appeal Exclusivity

Reliability Payment Options Lowest Rates Brand Name Payment Plan Options Reduced Anxiety Service Quality

+

  • ?

+ +

?

+ + + +

?

  • +
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STEP #2: Estimate the Force of Each Claim

Claims of Value

Appeal Exclusivity

Reliability Payment Options Lowest Rates Brand Name Payment Plan Options Reduced Anxiety Service Quality

+

  • ?

+ +

?

+ + + +

?

  • +
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2

We teach a more in-depth process for identifying and evaluating your claims of value in the Value Proposition Development Course.

STEP #2: Estimate the Force of Each Claim

Value Proposition Worksheet

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STEP 3: Test within Subject Lines (Round 1)

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STEP #3: Test within Subject Lines (Round 1)

VP #1 VP #2 VP #3 VP #4 VP #5 VP #6 SL 1-1 SL 2-1 SL 3-1 SL 4-1 SL 5-1 SL 6-1 SL 1-2 SL 2-2 SL 3-2 SL 4-2 SL 5-2 SL 6-2 BC-1 BC-2 BC-3

Top Claims of Value

Subject Line (SL) Testing of Value Proposition

Body Copy (BC) Testing of Value Proposition

Value Proposition Testing Process

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Background: Large Financial Institution Goal: To determine which claim of value will generate the greatest response Primary research question: Which subject line will produce the greatest

  • pen rate?

Approach: A/B Multifactorial split Experiment ID: Protected Location: MarketingExperiments Research Library Test Protocol Number: TP2092 Research Notes:

STEP #3: Test within Subject Lines (Round 1)

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Lowest Rates Payment Options Brand Name

S/L: Own Your Home Sooner with Free Bi-Weekly Payments S/L: Discover the Advantages

  • f [Brand Name] mortgages

S/L: Mortgage Rates under 2.7%. Find a solution in minutes.

SUBJECT LINES CLAIMS

STEP #3: Test within Subject Lines (Round 1)

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Claim Subject Line OPR

Low Rates

Mortgage Rates below 2.7%, find a solution in minutes

19.28%

Low Rates

Low mortgage rates – starting under 2.7%

18.58%

Hidden Fees

Low mortgage rates with no points or hidden fees

18.10%

Payment Plan

Own your home sooner with free bi-weekly payments

20.99%

Brand Name

Buying or Refinancing? Check out [Brand Name]

17.16%

Brand Name

Discover the advantages of [Brand Name] mortgages

19.80%

Community

Looking for a lower mortgage rate? You’re not alone.

18.08%

Anxiety

Spending too much on your mortgage?

18.22%

Anxiety

Getting the lowest mortgage rate?

19.37%

Anxiety

Mortgage payments too high?

18.67%

STEP #3: Test within Subject Lines (Round 1)

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Claim Subject Line OPR

Low Rates

Mortgage Rates below 2.7%, find a solution in minutes

19.28%

Low Rates

Low mortgage rates – starting under 2.7%

18.58%

Hidden Fees

Low mortgage rates with no points or hidden fees

18.10%

Payment Plan

Own your home sooner with free bi-weekly payments

20.99%

Brand Name

Buying or Refinancing? Check out [Brand Name]

17.16%

Brand Name

Discover the advantages of [Brand Name] mortgages

19.80%

Community

Looking for a lower mortgage rate? You’re not alone.

18.08%

Anxiety

Spending too much on your mortgage?

18.22%

Anxiety

Getting the lowest mortgage rate?

19.37%

Anxiety

Mortgage payments too high?

18.67%

STEP #3: Test within Subject Lines (Round 1)

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STEP 4: Test within Body Copy (Round 2)

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STEP #4: Test within Body Copy (Round 2)

VP #1 VP #2 VP #3 VP #4 VP #5 VP #6 SL 1-1 SL 2-1 SL 3-1 SL 4-1 SL 5-1 SL 6-1 SL 1-2 SL 2-2 SL 3-2 SL 4-2 SL 5-2 SL 6-2 BC-1 BC-2 BC-3

Top Claims of Value Subject Line (SL) Testing of Value Proposition

Body Copy (BC) Testing of Value Proposition

Value Proposition Testing Process

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Background: Large Financial Institution Goal: To determine which claim of value will generate the greatest response Primary research question: Which email will produce the highest clickthrough rate? Approach: A/B Multifactorial split Experiment ID: Protected Location: MarketingExperiments Research Library Test Protocol Number: Research Notes:

STEP #4: Test within Body Copy (Round 2)

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STEP #4: Test within Body Copy (Round 2)

Payment Options

Version A

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STEP #4: Test within Body Copy (Round 2)

Customer Service

Version B

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STEP #4: Test within Body Copy (Round 2)

Version B – Customer Service Version A – Payment Options

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Subscription path CTR Relative diff

  • v. control

Version A: Mortgage Payment Options

1.44%

240.7% Version B: Customer Service 0.42%

  • 241% Increase in clickthrough rate

Version A generated a 240.7% higher clickthrough rate than Version B

What you need to understand: The email message focused on payment

  • ptions outperformed the email focused on customer service by 240.7%.

STEP #4: Test within Body Copy (Round 2)

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STEP #4: Test within Body Copy (Round 2) How did we infuse different value propositions into the body copy?

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STEP #4: Test within Body Copy (Round 2)

Five Key Parts:

  • 1. First Sentence
  • 2. Featured Bullets
  • 3. Bolded Phrases
  • 4. Call-to-Action
  • 5. Post-Script

Overcoming Challenges

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STEP 5: Interpret and Implement

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VP #1 VP #2 VP #3 VP #4 VP #5 VP #6 SL 1-1 SL 2-1 SL 3-1 SL 4-1 SL 5-1 SL 6-1 SL 1-2 SL 2-2 SL 3-2 SL 4-2 SL 5-2 SL 6-2 BC-1 BC-2 BC-3

Top Claims of Value Subject Line (SL) Testing of Value Proposition

Body Copy (BC) Testing of Value Proposition

Value Proposition Testing Process

STEP #5: Interpret and Implement

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STEP #5: Interpret and Implement

Question #1: What was the financial impact of the test? Question #2: What did we learn about our customer? Question #3: Where can we apply these insights? Three Critical Questions for Test Interpretation

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STEP #5: Interpret and Implement

451% 302% 603% 257% 28%

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Summary of Steps

5 Simple Steps for Testing Value Proposition with Email STEP 1: Identify Potential Claims of Value STEP 2: Estimate the Force of Each Claim STEP 3: Test within Subject Lines (Round 1) STEP 4: Test within Body Copy (Round 2) STEP 5: Interpret and Implement

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Summary of Steps

VP #1 VP #2 VP #3 VP #4 VP #5 VP #6 SL 1-1 SL 2-1 SL 3-1 SL 4-1 SL 5-1 SL 6-1 SL 1-2 SL 2-2 SL 3-2 SL 4-2 SL 5-2 SL 6-2 BC-1 BC-2 BC-3

Top Claims of Value Subject Line (SL) Testing of Value Proposition

Body Copy (BC) Testing of Value Proposition

Value Proposition Testing Process

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Audience Example

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51

Email Group #1 Email Group #2 Email Group #3 Email Group #4 Apr 30

Messages Messages Messages Messages

May 21 Jun 11 Jul 9

Expertise Treated most patients Quality Care 20+ clinical quality team Trust Most referred to by professionals Customer Sat Highest customer sat scores Ease of Referring Full continuum of care Expertise Clinical Supervision Model Ease of Referring RQM system Expertise Therapeutic Alliance Expertise Over 620 unique programs Winner 1 Winner 2 Winner 3

12 Week Process from First Email to Winner Currently in Testing

Audience Example

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Trust – “We treat more clients than any other program, & we have systems in place to share the knowledge we acquire throughout our network.” Quality Care– “We can guide you on which is the best fit for your client clinically and financially” Expertise – “We are the most recommended network by clinical professionals throughout the United States.”

Audience Example

Claims Tested:

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334% Increase in clickthrough rate

The “most clients” email increased clickthrough by 334%

VP Claim CTR Rate Relative Diff. Statistical Significance Expertise 3.57%

  • Quality Care

5.37% 70% Trust 13.55% 334% 99% 65%

Audience Example

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How You Can Use Email to Discover the Essence

  • f Your Value Proposition (in 5 Simple Steps)

Austin McCraw Senior Editorial Analyst MECLABS Group