Archive

Posts Tagged ‘Value Proposition’

Ask MarketingSherpa: Internship for international student in the US

February 15th, 2019
Share

We frequently receive questions from our email subscribers asking marketing advice. Instead of hiding those answers in one-to-one email communication, we occasionally publish edited excerpts of some of them here on the MarketingSherpa blog so they can help other readers as well. If you have any questions, let us know.

 

Dear MarketingSherpa: Hi, Daniel Burstein. I appreciate it that you are so warm-heart and nice to offer to help.

Currently, I am a graduate, major in Social Media and Mobile Marketing. I want to seek a Summer Intern in the field of Marketing or Digital Marketing, either full-time or part-time. I am an International student from China.

According to my current situation, do you have some advice to give me? When you are free, could you let me know your suggestions. I am so grateful to hear from you.

Regards,

 

Dear Reader: Congratulations on your academic achievements and thanks for writing. I assume you are looking for an internship here in the US?

I’ll be honest, the fact that you’re a non-native speaker could be a challenge.

So …

Read more…

Value Proposition: Before you express the value, you have to deeply understand the value (MarketingSherpa Podcast Episode #3)

January 29th, 2019
Share

You think your product is great. Your service is top-notch. And personally, I have no reason to doubt you.

Your ideal customer, on the other hand … let’s face it, they don’t live in the four walls of your office. They aren’t thinking about your product every moment of every day like you are. They — and I hope this doesn’t sound harsh — really don’t care.

This disconnect is normal, of course. But here’s where you’ll get in trouble.

The next time you hire an advertising agency to create a campaign, when you redesign your website, when you launch a product — if you use that same insider thinking, you will undercut your marketing investments. Because those advertising and marketing creatives need to be armed with an essential reason why the ideal customer should buy your product.

Without that core reason — that marketing creativity isn’t being put to its most effective use. Just like a painting without a viewpoint isn’t really art, it’s just nice colors on a canvas.

Without that core reason, all you get is “we’re the bestest, greatest, amazingest [product type] you’ve ever seen.” You can buy all the media you want and blast that message out into the world but really … c’mon … how many customers will truly believe it?

Your product needs a value proposition. In our latest podcast, Austin McCraw and I have a robust yet light-hearted conversation about pitfalls marketers can get into when crafting their value prop. You can listen to this episode below in whichever way is most convenient for you or click the orange “Subscribe” button to get every episode.

 

 

More about episode #3 — consider the competition

A value proposition created in a vacuum is no value proposition at all.

And this is what makes crafting a value prop so difficult. You’ve got to take a good, hard look at what other options your customers have. Even when it isn’t direct competition. For example, customers taking a short trip aren’t only considering which airline is best, they are considering if they should drive instead. Or take a train. Or perhaps not go at all.

That competitive element can go against our human nature because by playing up a competitor’s offerings, we can feel disloyal to the team we’re on.

But it is essential for marketers to be the voice of the customer in the organization, reminding the whole company what other offerings are out there. By doing so, you not only sell your company’s products and services but can positively shape their value to create something even better for customers. And by having an influential stake in value creation, you are at the heart of what is important to business leaders and the very essence of the business itself.

These are topics Austin and I dove into. Here are a few key moments from this episode:

  • 1:55 – Austin defines value prop.
  • 4:26 – You’re trying to set an expectation, not make a promise.
  • 5:35 – There is a fundamental value proposition for the entire company. Marketers can feel intimidated by that because they feel like they can’t really affect it. But every person in every company can likely at least affect one of these other levels of value proposition in their daily work.
  • 8:16 – Organizations also have a value proposition. Cultures have a value proposition.
  • 11:00 – A value proposition workshop is a way to get key business leaders together and discover the most powerful value proposition.
  • 12:19 – Consider the competition, even when you think the product is so breakthrough that there is no competition …
  • 15:49 – … because there is always competition. I’m a Jacksonville Jaguars fans, and at the beginning of the season, I could have felt like they have no competition. But now, staring back at a 5-11 record, reality clearly shows they weren’t up to the competition.
  • 17:42 – Of course what we’re talking about is looking past your direct competitors. We use the example of newspapers here. Even though many newspapers do not have direct competition, they still have plenty of indirect and replacement competitors.
  • 21:20 – Sometimes products or brands within your company aren’t differentiated enough. In that case, less is more, and they shouldn’t all exist.
  • 21:56 – Sometimes your products are competing with each other. In that case, make sure there is clear value differentiation between them. A bad example is my car insurance renewal. I get a thick packet in the mail that I don’t understand, and I don’t really grasp the different value of my product options.
  • 24:10 – A feature matrix is a great way to show the different levels of value offered by different products to minimize competition between products and help customers select the best offering.
  • 21:41 – Your product needs clear exclusivity from all competitors, both internal and external.
  • 27:25 – Even if you have a commoditized product, you can find ways to create and communicate value exclusivity. For example, com uses customer service and social media personalities to differentiate from other (frankly, fairly similar) fitness-oriented supplements and vitamins.
  • 28:03 – Even sushi can have exclusivity.
  • 28:55 – It takes the sushi chefs at this restaurant three years just to learn how to cook the rice.
  • 32:07 – A competitive analysis can help you identify elements of exclusivity.
  • 32:46 – If you really start to delve in, you might discover your product doesn’t really have a value prop. In that case, we discuss what to do.

Related resources

Powerful Value Propositions: How to optimize this critical marketing elements — and lift your results

Customer Value: The 4 essential levels of value propositions

Value Proposition Development on-demand certification course

How to Structure a Story in a Presentation

September 12th, 2018
Share

A MECLABS Institute Research Partner was putting together a major presentation and recently reached out for thoughts on how to structure it. As with conversion and many other areas of marketing, MECLABS (the parent research organization of MarketingSherpa) has a specific framework for crafting engaging presentations.

Using a trusted framework can help, because public speaking — whether on webinars, in-person at conferences, to prospects on a sales call, or in an internal meeting — does not come naturally to many people. In fact, public speaking is often ranked as a more common fear than death in national surveys, prompting Jerry Seinfeld to remark, “In other words, at a funeral, the average person would rather be in the casket than giving the eulogy.”

How morose. But it points out the need to support whoever in your company is speaking on behalf of your brand — sales reps, subject matter experts, C-level execs, even yourself — with a well-crafted presentation that helps them engage and convert the audience. You want to leverage the power of story and not rely on their speaking abilities alone.

The fundamental marketing challenge behind every presentation

Since presentations are communication and a representation of the brand, they are inherently a marketing challenge.

And like any marketing challenge, the goal is to make sure the value delivered outweighs the cost to the potential customer.

This is true for any call-to-action you have in the presentation, for example, moving to the next step in the sales process for a sales presentation or visiting a website for a presentation at a conference.

However, it’s even true for just getting your audience to pay attention to you. Let’s be real, it is very difficult to pay attention to anything for an extended time in 2018. If the value isn’t higher than the cost of avoiding email or putting down their phone or leaving the webinar or simply zoning out, you will lose them.

Read more…

Ask MarketingSherpa: How to get high-paying customers and clients

September 6th, 2018
Share

We frequently receive questions from our email subscribers asking marketing advice. Instead of hiding those answers in a one-to-one email communication, we occasionally publish edited excerpts of some of them here on the MarketingSherpa blog so they can help other readers as well. If you have any questions, let us know.

Dear MarketingSherpa: I am so happy I came across your site. Just flipping through and reading this email alone convinced me I’ll learn a lot from you. I am also grateful for the high-value report, I have downloaded it and will schedule time to really consume it.

My current challenge in my business is how to package my services for high-profile clients and charge them the premium fees for what I am worth. My business suffers from [in]consistent cashflow and high-paying clients.

I appreciate your help in transforming my businesses to target the affluent.

Dear Reader: So glad you found it helpful. Here are a few pieces of advice to help you overcome your challenges. This is a very frustrating challenge I’ve heard expressed by business leaders and companies ranging from ecommerce sites to consulting firms.

To charge premium fees you must have a powerful and unique value proposition.

What you offer must be appealing, however, in your situation where you are able to sell the service but must sell it at a low price, the likely culprit is lack of exclusivity in your value proposition.

To illustrate the point, I worked with James White, Senior Designer, MECLABS Institute (parent research organization of MarketingSherpa), on the below visual. Let’s walk through it.

The letters in the equation-looking grouping in the upper right are from the MECLABS Net Value Force Heuristic, a thought tool based on almost 20 years of research to help you understand which elements to adjust to increase the force of a value proposition. As you can see, exclusivity isn’t the only element of a forceful value proposition.

To the left are products and services with a low level of value differentiation. And to the right are products with a high-level of value differentiation.

Read more…

Value Gulfs: Making sure there is differentiated product value when marketing upgrades and upsells

May 31st, 2018
Share

unique value proposition in the marketplace is essential for sustainable marketing success. You must differentiate the value your product offers from what competitors offer. That is Marketing 101 (which certainly doesn’t always mean it’s done well or at all).

However, when you offer product tiers, it is important to differentiate value as well. In this case, you are differentiating value between product offerings from your own company.

This is a concept I call “value gulfs” and introduced recently in the article Marketing Chart: Biggest challenges to growing membership. Since that article was already 2,070 words, it wasn’t the right place to expand on the concept. So let’s do so know in this MarketingSherpa blog post.

When value gulfs are necessary

You need to leverage value gulfs in your product offers when you are selling products using a tiered cost structure. Some examples include:

  • A freemium business model
  • Free trial marketing strategy
  • Premium membership offering(s)
  • Good, better, best products
  • Economy paired with luxury offerings
  • Tiered pricing

The customer psychology of value gulfs

MECLABS Institute web designer Chelsea Schulman helped me put together a visual illustration of the value gulf concept:

Allow me to call out a few key points:

Read more…

Screw the Competition: How to avoid dreaded commodification

February 16th, 2018
Share

In high school, I never quite found my niche. I wasn’t a jock or preppie, neither freak nor geek. I just had to be me.

In other words, my focus was on my intrinsic value proposition, not what the competition was doing.

Competitive analyses are valuable, don’t get me wrong. They are necessary to ensure you have a unique value proposition. After all, your product isn’t for sale in a vacuum. I’ve worked with a competitive sales office in the past and you can learn a lot from win-loss reports as well.

But don’t go too far with this business intelligence. My point is this …

Don’t let the competition define you

At some point, you have to say, “screw the competition.”

If your focus is on the competition, you’ll just be another Why Bother Brand.

And if your focus is on the competition, it’s in the wrong place. Your focus should be on the customer. That’s the way you create differentiated value.

Here are three examples of focusing on the customers, not the competition, from otherwise commodified industries:

Example #1: Southwest Airlines

Airlines have become a dreadfully commoditized industry. Just look how they move in lockstep. One airline adds baggage fees, and then every other “me too” airline jumps in behind it.

Not Southwest Airlines. I’m sure it has analyzed the competition. I’m sure it is aware of fee revenue.

But that simply doesn’t work for this brand. So Southwest offers “No change fees. No matter what.” And communicated that value proposition cleverly in a recent TV ad about a coach who believed in his basketball team so much, he already booked tickets to the championship game.

The kicker, of course, is that the team doesn’t make it to the championship game and has to change their flight plans. Cue the tagline — “That’s Transfarency. Low Fares. Nothing to Hide.”

Does this mean you’ll fly Southwest every time? Probably not. I know I prefer non-stop flights. And you might have a favorite frequent flyer program.

But I tell you this — next time you’re charged $200 for canceling a flight, you’re going to remember that Southwest commercial. And if you go through negative experiences with your current airline enough, you may choose not to shop only on price but to favor flights from Southwest Airlines.

Read more…

Call-to-Action Optimization: 132% increase in clickthrough from changing four simple words

February 14th, 2018
Share

Think of all the money you invest in attracting customers before they even get to the call-to-action … buying media or traffic, designing websites and landing pages, crafting just the right offer.

If you can squeeze just a bit higher conversion rate out of your calls-to-action (CTAs), it increases the ROI on the rest of your marketing investment.

And that’s just a few percent. What about more than doubling the conversion of that CTA? Without the need for any IT or development resources?

A recent experiment MECLABS Institute (parent research organization of MarketingSherpa) ran with a Research Partner did just that. Let’s walk through the simple word changes and what you can learn from them as you craft your own calls-to-action and button copy.

Experiment design

This experiment was a landing page test that encouraged people to get a physical copy of a textbook mailed to them. These people are decision makers. They choose a product that will lead to significant product sales from others. By getting the sample in these decision makers’ hands, they are more likely to select this product and, therefore, drive significant sales.

The experiment had a control and two treatments. There were several differences between the control and the treatments including changing the image, headline and call-to-action. Both treatments improved clickthrough rate (CTR), with the second treatment generating a 277% increase in CTR at a 99% level of confidence.

That clickthrough increase carried its way through the funnel to an increase for the final conversion as well — an 82% increase in conversion for Treatment 2 at a 99% level of confidence.

But here’s where it gets more interesting. While the team changed several variables between the control and the treatments, they only changed a single variable between Treatment 1 and Treatment 2 — the call-to-action — to discover the impact of the CTA wording.

Read more…

There’s Treasure Everywhere: Turning waste into profit

February 9th, 2018
Share

Hobbes: Why are you digging a hole?

Calvin: I’m looking for buried treasure!

Hobbes: What have you found?

Calvin: A few dirty rocks, a weird root, and some disgusting grubs.

Wait for it … Wait for it …

Hobbes: On your first try??

Calvin: There’s treasure everywhere!

I thought of this cartoon by Bill Watterson (which he also used to name a cartoon collection book) while reading the Harvard Business Review article Searching for New Ideas in the Curious Things Your Customers Do by Taddy Hall and Eddie Yoon.

Turning a waste product into a $500 million brand

Hall and Yoon tell the story of Steve Hughes, now the CEO of Sunrise Strategic Partners. He was walking through a Tropicana factory when he noticed some workers on break taking the excess pulp (a waste product in orange juice production) and mixing it into juice they would drink themselves.

Instead of ignoring the workers or just assuming their behavior was odd, Hughes got curious and asked them about it. They explained that it made the juice taste fresh squeezed. This interaction gave Hughes the idea to launch Tropicana Grovestand  “the taste of fresh-squeezed orange juice,” which after four years became a $500 million brand.

That is just one example of turning waste into profit. Throughout history, curious business people have not only used this process to launch complementary brands in their own company like Hall and Yoon’s Tropicana example, they’ve also launched entirely new companies off their company’s waste (Kingsford was created when Henry Ford turned wood scraps from Model T manufacturing into charcoal briquets) and launched new brands off other companies’ waste (I interviewed TerraCycle CEO Tom Szaky back in 2007, and since then, the company has made everything from pencil cases to furniture out of other brands’ waste).

Read more…

Micro-yes(s) versus Micro-moments

November 21st, 2017
Share

“I was wondering about the methodology of MECLABS, about micro-yeses and the micro-moments.  There are some similarities about both terms. Do you have some articles on the topic micro-yeses vs micro-moments? If yes, can you provide me a link for it? If you don’t, this is a good topic for the next one, I guess.”

This suggestion comes courtesy of a MarketingSherpa Inbound Marketing newsletter subscriber who recently completed the MECLABS Institute Value Proposition Development course (from MarketingSherpa’s parent research institute).

Understanding these two topics — the micro-moment and the micro-yes — is especially important to the inbound marketer.

Content and social media tend to be consumed in micro-moments, and to get customers to engage with your social and content (and ultimately take a larger conversion action, like a purchase) requires a micro-yes to get a micro-conversion.

Micro-moments, i.e., “I will not waste 37 seconds standing in line without being entertained!”

“We put a name to a behavior that, thanks to mobile, was becoming pervasive. People had started to expect an immediate answer in the moments they wanted to know, go, do and buy,” said Lisa Gevelber, VP of Marketing for the Americas, Google, in the article 3 new consumer behaviors playing out in Google search data.

Essentially, mobile web use is exploding. Yada, yada, yada. I’m sure you know all of that.

But the important element to take away is not just the form factor that mobile use requires (e.g., responsive design) but the customer behavior shift mobile hath wrought.

And this is a trap we as marketers fall into. When we’re reviewing our social, our content, our landing pages, our advertising, our email, etc., we’re pretty darned focused on it. We eliminate as many distractions as possible. We craft headlines and body copy with a surgical precision. We know every detail about our products and services.

However, the customer is taking a mere micro-moment in their day with many other distractions going on. When they come across your blog post, they — “Jimmy! I told you to put that down and get off of your brother!” — interact with your content, social and marketing messages in a much more distracted fashion — “Wait, what did they say? Was that Flight 2054 to Jacksonville canceled? Or did they say Flight 2045?” — so you need to make sure your messages are clear and compelling.

Hence the need for micro-yes(s); more on that in a moment.

But the bigger point is this: Next time you’re looking at a marketing piece or piece of content, don’t just make sure the form is optimized for mobile (e.g., big buttons, white space, whatever). Make sure you’re thinking through that customer’s mobile behavior.

Because customers often exhibit different behaviors in these micro-moments. To wit, “Mobile searches for ‘best’ have grown 80% in the past two years,” Gevelber said.

So this behavior impacts your SEO and content strategies, for example. What type of information will people be searching for in a micro-moment? What content would help them?

Read more…

Everything is Marketing: Why all CEOs should have marketing backgrounds

November 17th, 2017
Share

You know the typical corporate structure. There are a series of departments that handle discrete tasks and hopefully work efficiently and effectively together to create a greater whole. There’s a finance department, human resources department, IT department, production or manufacturing department and a marketing department.

Except, can you really compartmentalize and departmentalize marketing?

Everything a company does is marketing. Perhaps once, marketing was simply the 4 P’s — product, price, promotion, and place. Understand the product well enough so you can identify a target market for it, understand the price point they are willing to bear, and then promote the heck out of it in the right place … usually with a heavy emphasis on advertising.

But as Deepa Prahalad says in Why Trust Matters More Than Ever for Brands, “Consumers today are trying and bonding with brands through design touch points and their experiences, not through advertising alone … Advertising and marketing can amplify the success of a great design, but they can rarely compensate for a poor one. Here, trust is a function of the brand messaging lining up with the consumer’s actual interaction with the product or service.” (emphasis is mine)

(I read this article as a student in the University of Florida/MECLABS Institute Communicating Value and Web Conversion graduate certificate program).

Companies need to “wow” customers with every interaction

And this is why every CEO should have a marketing background. Because almost everything a company does has an interaction with the customer. So almost everything is marketing.

If the IT department can’t get the back-end systems right and it goes down when a customer is trying to make a purchase, that’s (negative) marketing. If the purchasing department buys wetlands and puts a store on it, that’s (negative) marketing. Or if the finance department creates a program to give 1% of profits to charitable organizations, that’s (positive) marketing.

Read more…