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Posts Tagged ‘Value Proposition’

Customer-First Marketing: The customer is always right … but not always right for your company

October 19th, 2017

You’ve heard the saying a million times, I’m sure. “The customer is always right.” It is so ingrained in Stew Leonard’s that the supermarket chain has engraved it in stone and put it right in front of its stores.

And yet, while customers can offer valuable insights, if you’ve spent any time at all monitoring customer feedback, you know that customers can have some interesting opinions. Controversial perhaps. Wacky even. Impossible to bring to market in a profitable way. And occasionally downright bizarre.

So how do you square this circle? Customer feedback is extremely valuable, but customers don’t always know what they’re talking about.

Exhibit A: One Homer J. Simpson. In an episode of “The Simpsons,” Homer find his long-lost half brother, who happens to be rich and owns a car company. His brother offers to give him a free car but soon realizes that none of his company’s cars are what Homer really wants.

Sensing an opportunity, he sees Homer as the proxy for the “average man” and unleashes him with totally authority to design a car. The result — a monstrosity. (“You know that little ball on the antenna that helps you find your car in the parking lot? That should be on every car!”) And a monstrosity that costs $82,000, to boot.


The customer isn’t always right, your customer is always right

Here’s the problem. Homer is not the ideal customer to purchase a new car. If you’ve watched the show, you know he drives an old, beat-up, used car. So while he had lots of ideas, he never would have actually been able to buy the car he was designing.

How do you use customer feedback as valuable business intelligence without ending up having to market an $82,000 automobile with three car horns that play “La Cucaracha”? Here are a few tips to help set you down the right path:

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How to Drive Conversion Using a Value Proposition-focused Testing Strategy in Email Marketing

September 27th, 2017

Your company’s value proposition is its answer to the question, “If I’m your ideal customer, why should I buy from you over your competitors?”

While this might seem like something that lives and dies on your landing page, value proposition needs to be brought into every aspect of your marketing, especially your email. It is the channel where customers are going to be interacting with you most.

Plenty of email marketers have begun at least light A/B testing — subject lines, images, button colors — but value proposition is often an untapped area of email testing that could lead to serious returns.

There are four elements that increase or decrease the force of your value proposition:

  • Appeal: How badly do I want this offer?
  • Exclusivity: Where else can I get this offer?
  • Credibility: Can I trust your claims?
  • Clarity: What are you actually offering?

Take this recent case study with Willow Creek, which dabbles in all four of these elements, for example.

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Five Questions to Ask to Understand Customer Motivation

September 21st, 2017

This article was partially informed by The MECLABS Guide for Optimizing Your Webpages and Better Serving Your Customers. For more information, you may download the full, free guide here.

Motivation is a powerful tool in any marketer’s belt. If used correctly, it can maximize the effectiveness of your marketing message and move customers toward conversion.

After all, motivation is the key reason why any of us do anything — it’s just a matter of identifying what your customer’s motivations are and helping them understand how your product or service fits into that.

Question #1. Where is your customer in the thought sequence?

Looking at the MECLABS Institute (our parent company) Conversion Heuristic, you can see motivation (m) placed right at the beginning. However, as you can see by the number “4” placed in front of it, not all these elements hold equal weight.

Motivation is the single most important factor when it comes to affecting conversion. You can’t change something as intrinsic to your customers as motivation. You can, however, gain an understanding of it.

By learning where your customer is in this thought sequence and mapping out the other elements (value, incentive, friction and anxiety), you can craft your marketing message in such a way that it is optimized to speak to all four, leading to conversion.

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Three Questions to Align Your Strategy, Marketing and Sales

June 28th, 2016

When the business strategy isn’t linked with sales and marketing, the result is that marketers and sellers end up working harder, not smarter. This has a multi-billion dollar impact. Most companies struggle with this according to the Frank Cespedes, author, and Senior Lecturer at Harvard Business School: “Selling [or marketing,] no matter how clever and creative, can’t generate good financial returns unless it’s connected to strategy.”

I met Frank while we both spoke at an event in Santiago, Chile. We had a memorable time sharing ideas and research. I thought Frank had a practical approach to aligning sales and marketing. So, I reached out to him and interviewed him about what he’s learned through his research for his most recent book Aligning Strategy and Sales.

[Editor’s Note: This interview was edited for length and grammar only.]

 

Brian Carroll: What inspired you to write about Aligning Strategy and Sales, which is the title of your new book?

Frank Cespedes: Despite decades of attention to so-called strategic planning, there is remarkably little research about how to link strategy with the nitty gritty of field execution, especially sales efforts [and marketing]. American companies annually spend about $900 billion every year on sales efforts. That’s not marketing, that’s sales, that’s compensation, the travel, incentives, the infrastructure, etc. and to put that in perspective, Brian, that figure is more than three times what they spend on all media, Super Bowls, everything. It’s more than about 40 times what they spend on digital marketing, and it’s more than 50 times what they currently spend on social media. This is a big, big gap.

 

Can you tell us more about your background and where all of this came from?

I was an academic at Harvard Business School for about 11 years working my way up the hierarchy and always was doing research in sales-related areas. My research started with distribution channels, B2B distribution channels, morphed into sales. Then I ran a business for 12 years. And then I came back and said, “I’m teaching strategy. I know something about sales. Let me see what people have written about it.”

What I found was this gap, so I figured two things. One is I don’t think the world needs another book about strategy, and I don’t think, to be blunt, the world needs yet another selling methodology, but there just isn’t much if anything about linking the two and that was the gap that I set out to address.

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How a Roll of Sushi Changed My View on Marketing

December 1st, 2015

As a marketer, sushi really fascinates me.

I do enjoy a good sushi roll, but I am by no means a “sushi connoisseur.” However, the fact that I have met so many of them really intrigues me. How can so many people be so passionate about the rolling up of raw fish and rice?

I was recently visiting a friend, and he began to pontificate about the best local sushi restaurant, apparently rated one of the best in the world. He also claimed that I technically have never had sushi until I’d had it from this restaurant. He said I would “simply die” after just one bite (see irony). And I know my friend was not alone, for it took several weeks to get reservations for this restaurant.

Again, the sushi phenomenon fascinates me. Why would anyone wait weeks for sushi when they can just go to the local grocery store? Sushi and sushi, right?

How a Roll of Sushi Changed My View on Marketing

 

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Why You Shouldn’t Target Your Marketing: Target marketing fails

July 21st, 2015

Targeted marketing, or the practice of aiming marketing collateral at specific prospects or customers, has become so prolific that it is one of the largest tools in the modern marketer’s toolkit.  In fact, the U.S. Small Business Administration lists targeted marketing as the third step in marketing implementation.

Imagine yourself attending the brainstorming session for your next marketing campaign or participating in one at a trendy advertising agency. Does anyone in the room ever verbalize the thought, “Let’s not target this campaign to anyone?” Of course not; they would be laughed out of the room.

However, simply targeting your marketing is not equivalent to being customer-centric, or customer-first, and this is where the majority of us go wrong. Aristotle hints at this in his master work, Rhetoric: “For it is not enough to know what we ought to say; we must also say it as we ought … ”

It is in the spirit of saying it “as we ought” that I humbly submit to you five steps that have the capacity to royally mess up your targeted marketing by not implementing it with a customer-centric approach.

 

Step #1: Target Just Your Intended Audience

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Email Marketing for Nonprofits: Communicating value proposition

June 26th, 2015

We generally think of only companies or campaigns having value propositions. For nonprofit companies, communicating the value proposition effectively is necessary for survival.

There is a value prop behind every action, including each email sent — why should people read your entire email or click through to a landing page? In the case of nonprofits, it seems this challenge is stronger, with no promise of a product at the end of the cycle.

This value proposition of action for email marketing answers the question behind why customers should take a specific action when they get your email — click.

Once people land on your page, that’s when you give them the reason to take action.

At Web Optimization Summit 2014, Tim Kachuriack, Chief Innovation and Optimization Officer, NextAfter, shared his experiences of working with nonprofits on email and landing page designs.

He explained that he was inspired at a MarketingSherpa conference a few years prior, when his page was selected for live optimization and critiqued in front of the entire MarketingSherpa audience.

Although confident that the page could more effectively communicate his value proposition, he mentioned his reservations when asking to test this page for the first time, saying,

“You guys helped me create this ugly, Frankenstein-looking version of the landing page,” Tim said. “It took much convincing and pleading, and many adult beverages. I convinced my client to actually let us,  in fact, test this.”

It resulted in a 274% increase in revenue for the nonprofit.

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Live from IRCE 2015: The importance of handling customer reviews

June 3rd, 2015

In the often-flooded marketplace of ecommerce, customer reviews can make or break companies. At the MarketingSherpa Media Center at IRCE 2015, Daniel Burstein, Director of Editorial Content, MarketingSherpa, sat down with Joseph Jaconi, General Manager, Tech Armor, to discuss how Tech Armor’s focus on customer reviews helped transform this small ecommerce company into a major competitor.

Tech Armor, a screen protector e-retailer for mobile devices, started out selling on Amazon a little more than three years ago. The company now sells on major marketplaces across the U.S., including Walmart.com and eBay. This quick expansion can largely be accredited to the company’s focus on maintaining good customer reviews.

“We really built our brand around service and support,” Joseph said. “We’re a small company, but over 60% of our human resources is dedicated to customer service and support … that’s including sales, marketing and everything we’re doing.”

Joseph shared the following tips on how to handle customer reviews.

Watch the whole interview here:

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Ecommerce Investment Advice: How marketers can make their companies more valuable

March 3rd, 2015

We don’t often think of business investors as marketing experts.

However, great marketing is grounded in a great value proposition. If anyone is good at finding a value proposition, it’s a (smart) potential buyer of a business. Great investors have a way of cutting through all the hype and finding the true value (or lack thereof) in a company.

It stands to reason, then, that a great investor would be a stellar resource to tap for your marketing efforts.

Enter Abe Garver, Managing Director, BG Strategic Advisors. Abe attended IRCE last year and was able to talk to former MarketingSherpa reporter Allison Banko about how ecommerce marketers can develop an acquisition mindset and help grow their business, whether they plan to sell or not.

In this interview he covers:

  • How you value an ecommerce company
  • The four keys to making your ecommerce company more investor friendly (and as a result, customer friendly)
  • Why ecommerce companies aren’t really getting it right, and who really is

 

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How to Harness the Power of New Technology to Personalize to Your Audience

February 13th, 2015

We are in the midst of an informational and technological revolution. It is constantly changing the way we communicate. There is an unspoken drive deep down in the collective psyche of humanity that is pushing us to make communication faster and universal.

Being able to express complex ideas is vital to our species’ survival. It’s taken us from caves to high rises. From wall paintings and smoke signals to emails and international phone calls, the way we communicate is versatile and fluid. What’s the norm yesterday could easily be archaic tomorrow.

As marketers we have to communicate our companies’ ideas, products and values to potential customers in any medium they communicate in.

As we move toward more instant communication, the marketer has to evolve with consumers. Just like the shift from direct mail to email, the savvy marketer must know when to move to a new technological medium and how to market correctly in that medium.

 

Mobile email

For several years there have been predictions about the end of email.  While email has changed significantly in the last 20 years, we now send more emails than ever before.

According to emailisnotdead.com, there are currently 4.1 billion email accounts that send 122+ billion emails per hour — and 53% of those emails were opened on a mobile device. The future of communication is mobile email, and there is already a lot of it going on.

In order to get ahead of this curve, email service providers (ESPs) are developing algorithms that automatically sort your emails. Google unveiled their answer to the overcrowded inbox late in 2014. A consummate innovator and leader in the email space, Google has developed a system that automatically sweeps your emails into three easy to manage subfolders: Updates, Social and Promotions. They have allowed more design elements to be featured in the subject line space and have made it even easier to clear a whole inbox in seconds.

So what does that mean for marketers?

It means that as ESPs move into the future, they will use bundling to sort people’s emails. This will most likely lead to the average clickthrough rate decreasing. However, the quality of the leads will go up because emails, instead of being cookie-cutter sends, can be personalized for individuals based on data marketers accrue. In the future, designers will have to work with content writers to make sure their emails stick out visually, alongside personalization.

Effect of Gmail Tabs

Chart courtesy of: MailChimp

 

Marketing efforts will need to work in conjunction with all the other marketing options the company is using. We have to move away from thinking about individual campaigns and towards holistic, cohesive marketing tactics.

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