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Posts Tagged ‘customer theory’

Resources From the Latest MECLABS LiveClass: Answering your questions on Customer Theory, value propositions, and Customer-First Objectives

March 20th, 2023

In the MEC200 LiveClass and MEC300 LiveClass for ChatGPT, CRO and AI: 40 Days to build a MECLABS SuperFunnel, we got a few questions in the chat. I’ll use this blog post to provide some resources to help you with those questions as you prepare for our next LiveClass on Wednesday

What is Customer Theory?

Is there an example of a fairly advanced custom theory profile? E.g., what’s the document or artifact and format, after multiple tests. Is Customer Theory an actual doc?

The Customer Theory is an understanding of the customer that enables us to more accurately predict the total response to a given offer. It is your organization’s collected wisdom about the customer. Hopefully this comes from a cycle of experiments. But at first, it may come from data analysis. Or even gut wisdom.

Here’s a document you can use to begin building your Customer Theory, adding to it over time as you test – Introductory Guide to Developing Your Customer Theory [an interactive worksheet].

This article provides an example – Customer Theory: How to leverage empathy in your marketing (with free tool).

And this document can help you organize all the discoveries from your marketing experiments to discover patterns that will inform your customer theory – Get Your Free Test Discovery Tool to Help Log all the Results and Discoveries from Your Company’s Marketing Tests

The Four Levels of Value Propositions for Landing Pages

Do all landing pages have all four value propositions?

The four levels of value proposition are:

  • Primary value proposition (overall company)
  • Prospect-level value proposition
  • Product-level value proposition
  • Process-level value proposition

A successful landing page will tend to focus on one of these levels of value proposition, but have other elements as well. It’s like the 80/20 rule – 80% of your landing page will focus on one level, and the other 20% will support it with the other three levels.

For example, if you created a landing page for the Tesla Model S, the main thrust of your landing page would be a product-level value proposition. But you would also work in Tesla’s primary value proposition (perhaps showing Tesla’s charging network), prospect-level value propositions (perhaps showing why it is a good fit for a prospect focused on being environmentally conscious as well as a prospect interested in a sports car), and a process-level value proposition (perhaps there would be CTAs to sign up for a test drive, explaining the value of that process).

Keep in mind, that the landing page is also a great place to test your value proposition and further inform your Customer Theory (although not the only place, as we discuss in Value Proposition Testing: 64% of marketers say landing pages are most effective.

Customer-First Objectives (CFO) Framework

I missed the first 30 minutes, what are CFO again?

The CFO is your Customer-First Objective, a three-part framework for focusing your webpage and marketing messaging developed by Flint McGlaughlin, the founder of MECLABS Institute. This framework is an attempt to bring discipline to marketer’s approaches to their landing pages and messaging BEFORE they start to create their funnels, to make sure their funnels put the customer first.

Many marketing leaders intuitively understand the importance of putting the customer first. It is a common topic on the How I Made It In Marketing podcast. For example, when I interviewed Michelle Huff, CMO, UserTesting, she had discussed many stories with lessons that focused on understanding other people – like “Utilize customer empathy when trying to involve the customer in marketing efforts” and “Marketers should get involved with the sales team to learn from them” (you can hear our discussion in Product Management & Marketing: Surround yourself with the right people (podcast episode #38).

The MECLABS CFO framework helps discipline and codify that focus on understanding our customers, and uses it to inform all funnel creation activities.

Do you have any examples of a CFO that I can reference or do you recommend going back and reviewing the FastClasses?

You can check out FastClass #5 – Customer-First Objectives: Discover a 3-part formula for focusing your webpage message – and FastClass #6 – Customer-First Objectives Application Session: See real webpages optimized for marketing conversion.

Also, if you download the PDF copy (no form fill required) of The Way of the Marketer (in Chaos): A Path through the complexities of the AI Revolution, the cover has a CFO created by Flint.

Join Us for the Next LiveClass

You can RSVP here to join us for a Wednesday LiveClass. Here’s some feedback from current attendees to give you an idea what you can experience in these LiveClasses…

“…being able to come here and learn the ‘why’s’ behind things and getting the understanding has just been, like, life changing…and that was not a paid testimonial…” – Kristi Linebaugh, Sales and Marketing Specialist, Vigoa Cuisine. Hear directly from Kristi in this 51-second video.

“…My stress level has gone down because this is tough stuff…And Flint you’ve mastered all of this and it’s so nice to have access to this and you’ve been so gracious with your time and, well, what a generous soul…” – David B. Justiss, Agency Owner, Social Ink Works LLC. Hear directly from David in this 52-second video.

“…you said something very profound, and I’ve never heard this in the entire time of the Cohort yet. And it’s spot on to why we have the Cohort, why we need the Cohort, why the Cohort’s been so valuable as a community to us and I’m going to presume for so many, but it was something to the effect – be aware of incremental improvements to the wrong offer…” – Paul Good, Chief Executive Officer, PhotoPros, in this 58-second video

Email Marketing: Why National Geographic uses business rules and frequency caps

May 24th, 2013

National Geographic was sending an enormous amount of emails to its list – as much as almost 18 messages a week on average, depending on the season and the target segment within its database.

There were multiple marketing and creative teams sending those messages, so along with volume, branding and just simple look-and-feel was an issue as well.

To compound those problems, when a creative piece worked, it was re-used. A lot. A subscriber receiving a high frequency of emails might see the same, albeit (at least originally) high-performing, image for weeks or months on end.

Unsubcribes became an issue, particularly among the best converting recipients who were receiving the highest volume of email.

 

Kill your marketing calendar

I’m reporting live from Responsys Interact 2013 in San Francisco (Full Disclosure: I am a guest of Responsys at this event). Eric Brodnax, EVP, Digital Products, National Geographic Society, shared steps about how that well-known brand sought to overcome this challenge by taking a very customer-centric approach to completely change its email strategy in a session titled “Kill your marketing calendar. Moving from campaign-led to customer-led marketing.”

“What we saw was the retention rate was directly correlating to the number of messages they were receiving,” Eric said.

National Geographic used three learnings to turn this problem around across its email campaign ecosystem:

1. Ignoring your customer’s wishes impacts the entire business.

2. Your organization needs unified ownership of the customer relationship.

  • Without central oversight, it’s easy to mail too much.
  • It’s often your best customers who are treated the worst.
  • Problems compound as time passes.

3. Tailor your message to your (internal) audience.

  • Use analogies. Numbers don’t speak to everyone. In this case, Eric used the analogy of overfishing the ocean.
  • Be patient. You may need to repeat your message again and again.
  • Appeal to core values. Most companies claim to respect the customer and value collaboration.

“In the end, [appealing to core values] will resonate with people,”  Eric said. “But, if you don’t change the way you do business, you’re not going to make any differences.”

 

The implementation of business rules and frequency caps

I also had the chance to get insight into this email transformation from Marc Haseltine, Email Marketing Manager, National Geographic:

By actively monitoring our comments inbox and communicating with our email subscriber base, those on the front line of the program were aware that many customers felt like they were being over-communicated with via email.

These individual comments and feedback that were being received helped surface issues and potential problem areas in our email program for our data analysis group to really dig into. Their work helped identify long term trends that were impacting the email program.

We were actively targeting all our email campaigns, whether it was based on customers’ and fans’ stated preferences, purchase activity or geolocation, however, the email channel was helping to support so much of the Society’s content, activities and products.  Without business rules and frequency caps, it’d be possible for those most engaged with our brand to sometimes receive up to four emails a day from us.

Read more…

Value Proposition: 4 questions every marketer should ask about value prop

May 21st, 2013

You’ve determined if there is any true value in your marketing and you’ve taken the steps to craft your value proposition, when the one looming question hits you – what should I do next?

 

Turning theory into action was the key focus of Tony Doty, Senior Manager of Optimization, MECLABS, and Lauren Maki, Manager of Optimization, MECLABS, during the Industry Deep Dive session, “Value Proposition: How to turn that shiny, new value prop into a high-performing page,” here at MarketingSherpa and MarketingExperiments Optimization Summit 2013.

“We have a lot of great tools for developing value proposition, but often we find a lot of marketers asking us what to do next and that’s what this is all about,” Tony said.

Today’s MarketingSherpa blog post will feature four questions every marketer should ask themselves about what the next step should be for implementing value proposition development into marketing efforts.

 

 

Question #1: Who is my target audience?

Tony and Lauren explained before you think about where you will express your value prop statements, you need to first determine who your audience for that value proposition is and what their needs are.

“We should always craft a value proposition with a customer’s needs in mind,” Tony said.

 

 

Question #2: Do I know where my customers are coming from?

Tony also explained once you’ve identified the target audience for your value proposition, you need to understand the channels where your traffic comes from, and adapt your message as needed per channel.

Lauren brought up a good point that customers from different channels have different needs and motivations, so your value proposition placement should be strategic within each channel.

To do this, she explained you first need to identify not just who your target prospect group is, but also where that prospect group is coming from.

“There’s a lot more places than just your homepage for your value proposition,” Lauren explained. “Look at your data to determine if what you’re doing is effective once you’ve started putting your value propositions into place [in those different channels].”

Some of the channels Lauren highlighted in her example are:

  • Targeted email campaigns
  • PPC campaigns
  • Display ads
  • Referral sites
  • Landing pages
  • Product pages
  • Informational pages
  • Cart checkout
  • Social media

Read more…