Title here

How a Powerful Value Proposition Can Transform the Way CompaniesIncrease Community EngagementFlint D. McGlaughlinManaging Director and CEO, MECLABS

Which achieved the most engagement?

Email Subject line A: Volunteering matters. We have the proof.Email Subject line B: CC Your Boss: 1,000+ Ways to Make a Difference

29%In Clicks

Which achieved the most engagement?

Email Newsletter A:

Which achieved the most engagement?

Email Newsletter B:

Which achieved the most engagement?Email Newsletter A: Email Newsletter

B:

150%In Clicks

Which achieved the most donations?Widget Template A: Widget Template

B:

27.4%In Donations

Which achieved the most sales?

Webpage A:

Webpage B:

Which achieved the most sales?

Which achieved the most sales?Webpage A: Webpage B:

47%In Sales

Key Question:

What was it that moved more people to say “yes” to…

Opening an email…

Reading an article…

Making a donation…

Buying a product…

Volunteering matters. We have the proof.

What you need to understand

1. Marketing as a (philosophic) concept transcends marketing as a (business) term. Marketing is more fundamental and thus more universal. Wherever choice exists, marketing necessarily exists.

2. If marketing is messaging an offer, then politicians, scientists, and community leaders all engage in marketing. In each case they are asking for a yes -- to their candidacy, their theory, or their cause.

3. This leads to a fascinating question: Why do people say yes? The answer can shape history, launch movements, and change lives.

Key Observations

Today’s Challenge

So how can we use this to inspire fellow employees,

stakeholders and friends to say ‘yes’ to greater community

investment and engagement?

Today’s Challenge

Two Steps…

FIRSTBy understanding the value proposition as a field-tested framework of choice

About the MECLABS Institute

Over 20+ years of validated research, including:• 20,000+ sale path

experiments.• 500,000+ executive

interviews.• 2,200+ brand-side case

studies.• 36,980 companies

benchmarked.• Official partnerships with

University of Cambridge (UK) and University of Florida.

Research Overview

About the MECLABS InstitutePatented Communication Heuristics

Q = (2ip/it) - r

Rc[Vf – Cf] = Nf Vf = (Ap ⁞ Ex)Ac = (Cl ⁞ Cr)

Cf = (Mt ⁞ Mn)VfAc - CfAc = Nf

C = 4m + 3v +2(i-f) – 2a©

u = 2q + t + m + 2v + i©

Conversion

Net Value Force

Testing Utility

Opr > Oprn > Ocnn©

eme = rv(of + i) – (f + a)©

Optimization Sequence

Email Messaging Effectiveness

Test Priority Sequence

About the MECLABS InstituteHighlighted Partners in Research

Experiment: Background

Background: The authoritative source of news and information for leading global media organizations.

Goal: To significantly increase new product interest among WordPress bloggers

Research Question: Which page will produce the greatest new product click-rate?

Test Design: A/B radical redesign test

Experiment ID: TP1271Record Location: MECLABS Research LibraryResearch Partner: PR Newswire

Experiment: Side-by-sideOriginal Page: Treatment Page:

Experiment: Results

Design Clickthrough Rate

Original 3.0% Treatment 12.6%

% Relative Change: 321%

Relative Increase in Product Starts321%The optimized version increased the on-page conversion rate by 321%

What You Need to Understand: By completely re-communicating the value proposition on the page, the treatment generated a statistically significant increase in new product interest.

!

NOT THIS BUT THIS

1. Major decisions are more process than they are event.2. In commercial applications, we represent this process as a

funnel.3. While the funnel is useful, the way it is typically presented

distorts reality.

Key Learnings

The Decision Funnel

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

ition

The Inverted Decision FunnelSimplified View

And many more…

The Ad

The OfferPage

The SignupProcess

How would this apply in a corporate social responsibility environment?

?

Key Question

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

itionEmployee

“I will donate my time and energy to help this community initiative”

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

itionEmployer

“I will put resources behind this community initiative”

Two Critical Thought Sequences

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

itionEmployee

“I will donate my time and energy to help this community initiative”

Example: The employee thought sequenceSimplified View (generalized)

Formal orientation & registration

Initiative discovery process(Browse, choose)

Attendance and effort tracking

Email nurturing, newsletters and intranet ads

Key Questions

So what is a functional understanding of the term “Value

Proposition”?

Ongoing literature review of:• More than 1,100 academic articles,

spanning from 1890s to present• 20 popular authors including:

• Starch• Hopkins• Reeves

• Kotler• Porter• Lanning

Ongoing primary research including:• Over 15 years of research, spanning more

than 10,000 pages/paths and 1 billion emails

• 36,980 company benchmarks,3,831 charts and tables, 3,500+ creative samples, 1,000+ case studies

Understanding Value PropositionSubject-focused research

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

1914 – Daniel StarchPublishes first advertising textbook giving a definition to advertising

1961 – Rosser ReevesEstablishes what he calls “Unique Selling Proposition” (USP)

1980 – Phillip KotlerPublishes definitive marketing textbook which is still used in colleges today

1997 – Michael LanningCoins the term “Value Proposition,” applying it to business management.

1903 – Walter ScottPublishes the first book on the psychology of advertising.

1923 – Claude HopkinsPublishes very influential book called “Scientific Advertising.”

1947 – David OgilvyPublishes the 35 rules of advertising which coins the “Basic Selling Proposition” (BSP)

1980 – Michael PorterPublishes various books and articles on the topic of strategic differentiation.

2000s – Other AuthorsLittle-to-no universal meaning or alignment of terms.

Concept Development Timeline

Understanding Value PropositionThe result of our research

The functional understanding of the value proposition lies in another question…

If I am your ideal prospect, why should I buy from you rather

than any of your competitors?

1. You are fundamentally answering a first-person question posed in the mind of your customers. It always implies a “because” answer.

2. A value proposition focuses on a specific customer segment. This requires you to consider whom you will not serve and the associated tradeoffs.

3. A value proposition is an ultimate reason – the reason why; it is the culmination of a careful argument supported by evidentials.

4. A value proposition must differentiate you from your competitors. In at least one way, you must have an “only” factor.

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

Understanding Value PropositionThe philosophical foundation

What are examples of this reality in the employee thought-sequence??

Key Question

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

ition

Example: The employee thought sequenceSimplified View (generalized)

Formal orientation & registration

Initiative discovery process(Browse, choose)

Attendance and effort tracking

Email nurturing, newsletters and intranet ads

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

ition

Example: The employee thought sequenceSimplified View (generalized)

Formal orientation & registration

Initiative discovery process(Browse, choose)

Attendance and effort tracking

Email nurturing, newsletters and intranet ads

Derivative Value PropositionQuestion:As an employee, why

should I start browsing

community initiatives rather

than [another activity]?

(Mi)YES

(Ma)YESY

Valu

e Pr

opos

ition

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

(Mi)YES

Valu

e Pr

opos

ition

Example: The employee thought sequenceSimplified View (generalized)

Formal orientation & registration

Initiative discovery process(Browse, choose)

Attendance and effort tracking

Email nurturing, newsletters and intranet ads

Derivative Value PropositionQuestion:As an employee, why

should I use your volunteer

search/signup portal rather than

[the internet]?

A value-focused conclusion:

Because I can easily browse through the most local causes1 in categories that I care about2 in one central location3.

So how can we learn how to improve upon, even innovate beyond the employee experience we already offer today?

?

Key Question

SECONDBy understanding how to increase the force of our value propositions

Experiment: Background

Background: A non-profit organization that offers a variety of online services to support a community of nonprofit, volunteer and business leaders committed to civic engagement.

Goal: To understand the most effective approach to inspiring action (clicks) after someone learns about the product.

Research Question: Which call-to-action variable cluster will achieve the highest total click-through rate?

Test Design: A/B Multi-factorial split test

Experiment ID: TP11334Record Location: MECLABS Research LibraryResearch Partner: VolunteerMatch

Experiment: Background Original Experience:

• In this experiment, we wanted to understand the most effective approach to inspiring action (clicks) after someone responds to a VolunteerMatch email to learn more about the employee solutions product.

Experiment: Background Original Experience:

How forceful is the value proposition of this button?

?

Rc[Vf – Cf] = Nf

Value Proposition Heuristic

Vf = (Ap ⁞ Ex)Ac = (Cl ⁞ Cr)

Cf = (Mt ⁞ Mn)

Main Elements:Nf = Net Force of the Value PropositionVf = Gross Force Of the ValueCf = Gross Force of the CostAc = Acceptance

Sub Elements:Ap = Appeal Ex = Exclusivity

Cl = Clarity Cr = Credibility

Mt = Material Mn = Mental

Vf

AcCf

VfAc - CfAc = Nf

The Value Proposition Heuristic

Experiment: Treatment Treatment Experience:

How forceful is the value proposition of this new set of buttons?

?

Experiment: Side-by-side

Treatment Experience:

Original Experience:

Experiment: Results

Design Clickthrough Rate

Original 3.0% Treatment 11.8%

% Relative Change: 291.4%

Relative Increase in Clicks291%The optimized version increased on-page click-through rate by 291%

What You Need to Understand: By intensifying the value proposition of the call-to-action section, we observed a statistically significant increase in customers interested in engaging in a conversation.

!

• The force of a value proposition can be measured by four essential cognitive conclusions. The four are best understood when organized into two dyads:

VfAc - CfAc = Nf

Key Principles

D1Appeal – “I want it.”Exclusivity – “I can't get it anywhere else.”

D2Clarity – “I understand it/you.”Credibility – “I believe in it/you.”

Maximizing value force

• The force of a value proposition can be measured by four essential cognitive conclusions. The four are best understood when organized into two dyads:

VfAc - CfAc = Nf

Key Principles

D1Appeal – “I want it.”Exclusivity – “I can't get it anywhere else.”

D2Clarity – “I understand it/you.”Credibility – “I believe in it/you.”

Maximizing value force

“Our prospects must understand (clarity) so they can believe (credibility)

that only we (exclusivity) have what they want (appeal).”

How could this be used to maximize the value of the employee engagement experience?

?

Key Question

Examples: Maximizing Value Force• Newsletters, stories• Email reminders/promos• Dashboard messaging• Feature copy and focus• Orientation messaging• And more…

Experiment: Newsletters

From This:

To This:

21.2%In Engagement

Experiment: Newsletters

From This:

To This:

56%In Engagement

Examples: Maximizing Value Force• Newsletters, stories• Email reminders/promos• Dashboard messaging• Feature copy and focus• Orientation messaging• And more…

Experiment: Email Reminders

Background: A well-established financial institution running a campaign to get more people to sign into their online banking accounts.

Goal: To discover which email focus will produce the greatest response.

Research Question: Which email copy focus will generate the highest online account sign-in rate?

Test Design: A/B/C/D multi-factorial split test

Experiment ID: TP2121Record Location: MECLABS Research LibraryResearch Partner: (Protected)

Subject Line: Name, Your account information is ready to view

Subject Line: It's Easy to Access Your [Bank Name] Accounts Online. Sign On Now

Subject Line: Did You Forget Your [Bank Name] Online Username or Password?

Which lever produced the greatest response?

Experiment: Email Reminders

Experiment: Results

Design Clickthrough Rate

Relative Difference

Version A – Easy to Manage 4.19% 163.8%Version C – Get Your Password 2.50% 57.6%Version B – Easy to Access 1.59% --

Relative Increase in Engagement163%Version A increased email engagement through clicks by 163%

What You Need to Understand: Through a simple A/B/C test, we were able to determine which mental lever has the greatest value force.

!

Examples: Maximizing Value Force• Newsletters, stories• Email reminders/promos• Dashboard messaging• Feature copy and focus• Orientation messaging• And more…

Experiment: Dashboard messagingFrom This:

To This:

74%In Orders

SUMMARY

Summary: Experiment

Background: A nonprofit that supports Alzheimer’s disease research.

Goal: To significantly increase donations on their site.

Research Question: Which page will generate the most donations?

Test Design: A/B split test (variable cluster)

Experiment ID: TP1041Record Location: MECLABS Research LibraryResearch Partner: (Protected)

Summary: Experiment

Fundamental Value Proposition Question:

If I am your ideal donor, why should I donate to your

Alzheimer’s Research Foundation right now rather than donate to

another?

Which achieved the most donations?Webpage Intro A:

Because we are one of the world’s largest…

Which achieved the most donations?Webpage Intro B:

Because we are helping millions of families like these…

Which achieved the most donations?

Webpage Intro A: Webpage Intro B:

54%In Donations

“Because we are one of the world’s largest…”

Why donate to your foundation rather than another?

“Because we help millions like these…”

• To maximize community investment and engagement from fellow employees, stakeholders and friends, we need to:

1. Understand the value proposition framework as a series of decisions rather than one event.

2. Identify key mental levers around each decision using the four essential cognitive conclusions.

Key Principles

Summary

Resources

• 40 brief reflections on the power of your value proposition• 40 presentation-ready slides with

related case studies• Private-access video Lecture by Flint

McGlaughlin• Pre-release, numbered copy of the book• Signed by Flint

The Marketer as Philosopher

Learn more or purchaseat MECLABS.com

• Free excerpts from our handbooks• Benchmark reports• Annual Wisdom Reports• Email Awards Reports• Newsletters and much more

MarketingSherpa

Learn more at: MarketingSherpa.com

Conclusion