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Cisco Confidential 1 2011 Cisco and/or its affiliates. All rights reserved.
How to Optimize Your Marketing Tactics with aStrong Value Proposition Todd Lebo, Senior Director of Content, MECLABS
Austin McCraw, Senior Editorial Analyst, MECLABS
ACCESS WEBINAR RECORDING
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BONUS: Earn up to 20,000 Cisco Rewards pointsby attending the Cisco Accelerate! Virtual Workshops
Redeem your points for thousands of fantastic prizes.Heres How to Get Your Rewards Points:
Both you and your company must be enrolled in Cisco Rewards no later than July13 th 2012.
Receive 5,000 points for each session you attend. Attend both sessions and receivean additional 10,000 bonus points! The email address used to register/attend Accelerate! sessions must be the same
email used for your Cisco Partner Profile. Email [email protected] ifyou registered using a different email address.
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Todays speakers
Todd LeboSenior Director of Content, [email protected]
@ToddLebo
Austin McCrawSenior Editorial Analyst, [email protected]
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Value Proposition Question: If am your ideal prospect, why should Ibuy 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 toconsider 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 fora specific what .
4. A value proposition must differentiate you from your competitors. In at least oneway, you must have an only factor.
What is a Value Proposition?
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PerceivedValue
PerceivedCost
The Value Exchange
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The Value Proposition Spectrum
1
3
2
Question : Why should [PROSPECT A] buy fromyou rather than any of your competitors?
Question : Why should your ideal prospect buyfrom you rather than any of your competitors?
Question : Why should [PROSPECT A] buy thisproduct rather than any other product?
Question : Why should [PROSPECT A]click this PPC ad rather than any otherPPC ad?
Prospect B
PRODUCT
#3
PRODUCT
#4
PRODUCT #1
PRODUCT
#2PRODUCT
#3
PRODUCT
#4
PRODUCT
#2
PRODUCT
#3
PRODUCT
#4
PrimaryValue
Proposition
Conversion stepsassociated with aspecific product
PRODUCT
#2
The Value Proposition Spectrum
PROSPECT-LEVEL
PROCESS-LEVEL
PRODUCT
#1PRODUCT
#1
PRODUCT-LEVEL
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The force of a value proposition can be measured by four essentialelements 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?
The Force of a Value Proposition
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An Experiment:
How one B2B company utilized value propositionto generate a 302% boost in Projected Revenue
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Background: A leading software provider
Goal: To increase total leads captured
Primary research question: Which process will generate the most leads?
Approach: Radical redesign of the complete lead-generation process focusingon strengthening the communication of the value proposition
Experiment ID: (Protected)
Location: MarketingExperiments Research LibraryTest Protocol Number: TP1214
Research Notes:
Experiment: Background
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{Keyword} Business Software Award-Winning Business Software.Fully Integrated. Free Trialwww.XXXXXXXXXX.com/Business
How would you optimize this PPC Ad?
Experiment: Original ad
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The optimized PPC ad obtained 21% more clicks .
Business Software Suite#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/Business
{Keyword} Business Software Award-Winning Business Software.Fully Integrated. Free Trialwww.XXXXXXXXXX.com/Business
Original
Optimized
Experiment: Before and after
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But we didnt stop there
Business Software Suite
#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/Business
Experiment: Before and after
21%IN CLICK-THROUGH
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Experiment: Original landing page
How would youoptimize this
landing page?
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Experiment: Optimized landing page
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The optimized landing page generated 54% more clicks .
Experiment: Results
Before After
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But we didnt stop there
Business Software Suite#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trial
www.XXXXXXXXXX.com/Business
Experiment: Results
21%CLICK-THROUGH
54%CLICK-THROUGH
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Experiment: Original form
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Experiment: Original form
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The optimized form page generated 97% more submissions .
Experiment: Before and after
Before After
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What was the compounding effect of the sequential gains?
Business Software Suite#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/Business
Experiment: Original form
21%CLICK-THROUGH
54%CLICK-THROUGH97%FORM SUBMISSIONS
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Metric Control TreatmentRelative
Difference
PPC Advertisement 0.89% 1.08 20.9%
Landing Page Clickthrough 7.17% 11.06% 54.26%
Form Completion 15.84% 31.25% 97.27%
Impression-to-lead Conversion .009% .033% 272.2%
272% Increase in Overall Conversion The optimized paths conversion rate increased by 272.2%
Experiment: Original form
What you need to understand : In this experiment, a 272% increase inconversion led to 268% more projected revenue and, when combined withthe corresponding 66% reduction in cost-per-acquisition, the optimizedpath produced more than 4 times the monthly profit (302% increase).
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Cisco Confidential 23 2010 Cisco and/or its affiliates. All rights reserved.
Todays Focus:
Two key ways to infuse your value proposition intoyour marketing tactics
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1. One must think holistically about the communication of their valueproposition. This involves two key elements:
1. Congruence
2. Continuity
Session 2 Expressing an Effective Value Proposition
Key Principle
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1. Congruence is having every element of your page either state the valueproposition or support the value proposition. (This can be expressed inyour logos, price, design features, images, colors, etc.)
Session 2 Expressing an Effective Value Proposition Congruence
Key Principle
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This page uses vaguelanguage to communicatethe value and it is notconnected to PPC ad.
Three competing objectivesand many navigation linksleading off the page.
Long paragraphs that aredifficult to scan.
Main CTAs are put in theright-hand column out of the visitors main eye-path.
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The optimized version usesquantitative language similarto the optimized PPC ad.
Awards are shownprominently withtestimonials.
Paragraphs are broken upand more digestible.
Navigation has beenremoved.
Three CTAs have beenreduced to one and put inthe main column.
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Header
Body
Navigation(Optional)
Navigation(Optional)
Footer
Logo
Example Design Template
States valueproposition only
States and supportsvalue proposition
Supports valueproposition only
Session 2 Expressing an Effective Value Proposition Congruence
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Session 2 Expressing an Effective Value Proposition Congruence
Header (States)
Interrupt (Supports)
What it is(States)
What you get(States)
Why it is important(Supports)
Summary of what you get(States)
Sample(Supports)
Sample(Supports)
Value(States)
Call-to-action (Supports)
Third-party indicators(Supports)
Personal Photo (Supports)
Provide a strong hook that keeps theprospect reading and identifies thevalue proposition.
Engage the reader
Establish that the writer is credibleusing track records or 3 rd party quotes.
Quickly tell the reader what theproduct is. Provide links to pop-upswith samples of the product.
List features and benefits, relating tothem personally to the reader. Establishsome value, You might expect topay.
The entire purpose of this page is to getthem to the next step.
Example of Body Copy
OBSERVATION #1:
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Background: A company offering dedicated business hosting services
Goal: To increase the amount of leads
Primary research question: Which page design will generate the greatestamount of leads?
Approach: A/B multi-factor split test (radical redesign)
Experiment ID: (Protected)Location: MarketingExperiments Research LibraryTest Protocol Number: TP1341
Research Notes:
Experiment: BackgroundOBSERVATION #1:
OBSERVATION #1:
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Experiment: OriginalOBSERVATION #1:
OBSERVATION #1:
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Experiment: Original
The banner is the first thing that people see when arriving at this page, but what does itmean? It might mean something to the company, but it conveys little value to theprospect.
OBSERVATION #1:
OBSERVATION #1:
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Experiment: Original
This company only truly needs 4 fields in order to obtain a qualified lead, and yet 20different fields must be completed on this page.
Call to action Request a Quote is impersonal and implies commitment and cost.
OBSERVATION #1:
OBSERVATION #1:
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Experiment: Original vs. TreatmentOBSERVATION #1:
OBSERVATION #1:
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Experiment: Treatment
Immediately lets the visitor know where
the are and what they can do on thispage.
Provides organized content that theprospect could navigate through basedon their own needs
Uses images with easily understandablemeaning
Uses the more personal/ lowercommitment call-to-action language of Call to Discussing Your Needs
Moves all unnecessary forms fields to asecondary step.
O V #1:
OBSERVATION #1:
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Experiment: Original vs. Treatment
OBSERVATION #1:
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Design Conversion Rate (%) Relative
Difference
Statistical Level
of Confidence
Original Page 2.00% - -
Treatment 5.77% 188.46%
189% Increase in Overall Conversion The new pages conversion rate increased by 188.46%
Experiment: Result
95%
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Session 2 Expressing an Effective Value Proposition Continuity
Key Principle
1. Congruence is having every element of your page either state the valueproposition or support the value proposition. (This can be expressed inyour logos, price, design features, images, colors, etc.)
2. Continuity is making certain that each step of the buy process eitherstates or supports the value proposition.
OBSERVATION #2:
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g =
9 . 8
1 m
/ s 2
1. The funnel is often presented asone potentially useful analogy formarketing. It is in fact, theprimary analogy . All marketingshould influence a decision.
2. The funnel analogy distortsreality. People are not falling intoyour funnel, they are falling out.The funnel must be inverted.
3. People dont travel down thecenter of the funnel. People areclimbing up the sides.
The Inverted Funnel
39
OBSERVATION #2:
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(Mi)YES
(Ma )YES Y
Business Software Suite#1 On-Demand. 6459+ World C lientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/Business
PPC Ad
Landing Page
Sales Call
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
T h e M e s s a g e
The Inverted Funnel
40
OBSERVATION #3:
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(Mi)YES
(Ma)YES Y
(Mi)YES
(Mi)YES
(Mi)YES
41
For the Primary, Product, Prospect, and Process-Level Value Propositions, the objective is to tipthe perceived value (Pv) to be greater than the
perceived cost (Pc).
(Mi)YES
T h e M e s s a g e
V a l u e P r o p o s i t i o n
V a l u e P r o p o s i t i o n
The Force of the Value Proposition
OBSERVATION #3:
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(Mi)YES
(Ma)YES Y
(Mi)YES
(Mi)YES
(Mi)YES
For the Primary, Product, Prospect, and Process-Level Value Propositions, the objective is to tipthe perceived value (Pv) to be greater than the
perceived cost (Pc).
(Mi)YES
T h e M e s s a g e
V a l u e P r o p o s i t i o n
V a l u e P r o p o s i t i o n
The Force of the Value Proposition
OBSERVATION #3:
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Background: A leading software provider.
Goal: To increase total leads.
Primary research question: Which process will generate the most leads?
Approach: Radical redesign of the complete lead-generation process.
Experiment ID: (Protected)
Location: MarketingExperiments Research LibraryTest Protocol Number: 1214
Research Notes:
Experiment: Background
OBSERVATION #3:
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(Mi)YES
(Ma)YES Y
(Mi)YES
(Mi)YES
(Mi)YES
T h e M e s s a g e
V a l u e P r o p o s i t i o n
V a l u e P r o p o s i t i o n
{Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software.Fully Integrated. Free Trialwww.XXXXXXXXXX.com/XXXXXXXX
Original PPC Ad
{Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software.Fully Integrated. Free Trialwww.XXXXXXXXXX.com/XXXXXXXX
(Mi)YES
X
Experiment: Original PPC ad
OBSERVATION #3:
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XXXXXXXXX Software Suite#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/XXXXXXXX
{Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software.Fully Integrated. Free Trialwww.XXXXXXXXXX.com/XXXXXXXX
Original
Optimized
Original ad uses only vaguequalitative statements likeAward Winning and Fullyintegrated
The optimized uses specificquantitative statements like#1 On Demand and6459+ World Clients tocommunicate the value.
Experiment: PPC Ads Side-by-Side
OBSERVATION #3:
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(Mi)YES
(Ma)YES Y
(Mi)YES
(Mi)YES
(Mi)YES
T h e M e s s a g e
V a l u e P r o p o s i t i o n
V a l u e P r o p o s i t i o n
XXXXXXXXX Software Suite#1 On-Demand. 6459+ World ClientsAward-Winning Solution. Free Trialwww.XXXXXXXXXX.com/XXXXXXXX
Optimized PPC Ad
{Keyword XXXXXXXXX Software} Award-Winning XXXXXXXX Software.Fully Integrated. Free Trialwww.XXXXXXXXXX.com/XXXXXXXX
(Mi)YES
Experiment: Optimize PPC Ad
OBSERVATION #3:
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PPC Ad CR Rel. Diff.
Control 0.89% -
Treatment 1.08% 20.9%
21% Increase in Overall Conversion The optimized PPC Ad conversion rate increased by 20.9%
Experiment: Results
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OBSERVATION #3:
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Again, the original landingpage from the ad is usingvague language tocommunicate the value.
Also, there is a significantdisconnect between thevalue communicated in thePPC ad and the value inlanding page. Where is theAward winning? Where isthe Fully Integrated?
Original Landing Page
Experiment: Original Landing Page
OBSERVATION #3:
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The optimized version
immediately connects thePPC ad to the landing pagemaintaining strongcontinuity.
As in the PPC ad, clearquantitative language isused.
Awards are shownprominently.
Testimonials and CTA bothadd value.
Optimized Landing Page
Experiment: Optimized Landing Page
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i lOBSERVATION #3:
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Landing Page CR Rel. Diff.
Control 7.17% -
Treatment 11.06% 54.26%
54% Increase in Overall Conversion The optimized Landing Page conversion rate increased by 54.26%
Experiment: Results
E i O i i l F POBSERVATION #3:
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(Mi)YES
(Ma)YES Y
(Mi)YES
(Mi)YES
(Mi)YES T h e M e s s a g e
V a l u e P r o p o s i t i o n
V a l u e P r o p o s i t i o n
(Mi)YES X
Experiment: Original Form Page
E i O i i l F POBSERVATION #3:
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This form page is not reallycommunicating any value.They have stopped trying tosell and assuming that thecustomer is convinced tocomplete the form.
Also, there is littleconnection that this pagehas to either the landingpage or PPC ad.
Experiment: Original Form PageOriginal Form Page
E i O i i d F POBSERVATION #3:
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The optimized page,
continues to communicatethe value of the offer evenon the registration page.
The message is directlyconnected to both the
landing page and the PPCcampaign.
Experiment: Optimized Form PageOptimized Form Page
E i O i i d F P
OBSERVATION #3:
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(Mi)YES
(Ma)YES Y
(Mi)YES
(Mi)YES
(Mi)YES T h e M e s s a g e
V a l u e P r o p o s i t i o n
V a l u e P r o p o s i t i o n
(Mi)YES
Experiment: Optimized Form PageOptimized Form Page
E i t R ltOBSERVATION #3:
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Landing Page CR Rel. Diff.
Control 15.84% -
Treatment 31.25% 97.27%
97% Increase in Overall Conversion The optimized Landing Page conversion rate increased by 54.26%
Experiment: Results
E i t O ll R ltOBSERVATION #3:
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Metric Control TreatmentRelative
Difference
PPC Advertisement 0.89% 1.08 20.9%
Landing Page Clickthrough 7.17% 11.06% 54.26%
Form Completion 15.84% 31.25% 97.27%
Impression-to-lead Conversion .009% .033% 272.2%
272% Increase in Overall Conversion The optimized paths conversion rate increased by 272.2%
What you need to understand : In this experiment, a 272% increase inconversion led to 268% more projected revenue and, when combined withthe corresponding 66% reduction in cost-per-acquisition, the optimizedpath produced more than 4 times the monthly profit (302% increase).
Experiment: Overall Results
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Summary
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Two key elements:
1. Congruence - having every element of your page either state the value propositionor support the value proposition.
2. Continuity - Making certain that each step of the buy process either states orsupports the value proposition. (All the collateral supports or states value prop).
Holistic approach: Every element at every step along the buy process must eitherstate or support your value proposition.
Key Principles
Session 2 Concept Summary
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Questions?
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2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 63
Accelerate! Session Recordings:
Session Recording Do You Have the Right Value Proposition?
Upcoming Velocity Sessions:
Marketing is the New Differentiation in the Tech Industry (with Forrester)
Get Started Crafting an Effective Value Proposition:
Download the Value Prop Worksheet from MarketingExperiments
Marketing Optimization Programs Landing Page, Email, PPC Campaigns
Earn up to 20,000 points for attending Accelerate! Sessions:
Register for Cisco Rewards no later than July 13 th.
Stay Connected to Cisco Accelerate!
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Thank You!