What does it take to add substantial social value to today's marketplace? Is it leadership skills? Is it the engagement programs they offer to fellow employees? Or is it something deeper that powers everything from a more essential level? In this session from the 2015 VolunteerMatch Summit, Flint McGlaughlin, Managing Director, MECLABS, revealed new insights from MECLABS research on the 4 key factors that power human choice and how real people at real companies can leverage this to add substantially more social value to their communities.

1. Title here
How a Powerful Value Proposition Can
Transform the Way Companies
Increase Community Engagement
Flint D. McGlaughlin
Managing Director and CEO, MECLABS

2. 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

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

4. Which achieved the most engagement?
Email
Newsletter B:

5. Which achieved the most engagement?
Email Newsletter A: Email Newsletter B:
150%In Clicks

6. Which achieved the most donations?
Widget Template A: Widget Template B:
27.4%In Donations

7. Which achieved the most sales?
Webpage A:

8. Webpage B:
Which achieved the most sales?

9. Which achieved the most sales?
Webpage A: Webpage B:
47%In Sales

10. 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.

11. 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

12. 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?

13. Today’s Challenge
Two Steps…

14. FIRST
By understanding the value proposition as
a field-tested framework of choice

15. 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

16. About the MECLABS Institute
Patented 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

17. About the MECLABS Institute
Highlighted Partners in Research

18. 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: TP1271
Record Location: MECLABS Research Library
Research Partner: PR Newswire

19. Experiment: Side-by-side
Original Page: Treatment Page:

20. 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.
!

21. 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

22. (Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
The Inverted Decision Funnel
Simplified View
And many more…
The
Ad
The
Offer
Page
The
Signup
Process

23. How would this apply in a
corporate social responsibility
environment?
?
Key Question

24. (Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
Employee
“I will donate my time and energy to help this
community initiative”
(Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
Employer
“I will put resources behind this
community initiative”
Two Critical Thought Sequences

25. (Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
Employee
“I will donate my time and energy to help this
community initiative”
Example: The employee thought sequence
Simplified View (generalized)
Formal
orientation &
registration
Initiative
discovery process
(Browse, choose)
Attendance and
effort tracking
Email nurturing,
newsletters and
intranet ads

26. Key Questions
So what is a functional understanding of the
term “Value Proposition”?

27. 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 Proposition
Subject-focused research

28. 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
1914 – Daniel Starch
Publishes first advertising textbook
giving a definition to advertising
1961 – Rosser Reeves
Establishes what he calls “Unique
Selling Proposition” (USP)
1980 – Phillip Kotler
Publishes definitive marketing textbook
which is still used in colleges today
1997 – Michael Lanning
Coins the term “Value Proposition,”
applying it to business management.
1903 – Walter Scott
Publishes the first book
on the psychology of
advertising.
1923 – Claude Hopkins
Publishes very influential
book called “Scientific
Advertising.”
1947 – David Ogilvy
Publishes the 35 rules of
advertising which coins the
“Basic Selling Proposition” (BSP)
1980 – Michael Porter
Publishes various books and
articles on the topic of
strategic differentiation.
2000s – Other Authors
Little-to-no universal meaning
or alignment of terms.
Concept Development Timeline

29. Understanding Value Proposition
The 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?

30. 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 Proposition
The philosophical foundation

31. What are examples of this reality in
the employee thought-sequence??
Key Question

32. (Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
Example: The employee thought sequence
Simplified View (generalized)
Formal
orientation &
registration
Initiative
discovery process
(Browse, choose)
Attendance and
effort tracking
Email nurturing,
newsletters and
intranet ads

33. (Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
Example: The employee thought sequence
Simplified View (generalized)
Formal
orientation &
registration
Initiative
discovery process
(Browse, choose)
Attendance and
effort tracking
Email nurturing,
newsletters and
intranet ads
Derivative Value Proposition
Question:
As an employee, why should
I start browsing community
initiatives rather than
[another activity]?

34. (Mi)YES
(Ma)YES
Y
ValueProposition
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
ValueProposition
Example: The employee thought sequence
Simplified View (generalized)
Formal
orientation &
registration
Initiative
discovery process
(Browse, choose)
Attendance and
effort tracking
Email nurturing,
newsletters and
intranet ads
Derivative Value Proposition
Question:
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.

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

36. SECOND
By understanding how to increase the
force of our value propositions

37. 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: TP11334
Record Location: MECLABS Research Library
Research Partner: VolunteerMatch

38. 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.

39. Experiment: Background Original Experience:
How forceful is the
value proposition of
this button?
?

40. Rc[Vf – Cf] = Nf
Value Proposition Heuristic
Vf = (Ap ⁞ Ex)
Ac = (Cl ⁞ Cr)
Cf = (Mt ⁞ Mn)
Main Elements:
Nf = Net Force of the Value Proposition
Vf = Gross Force Of the Value
Cf = Gross Force of the Cost
Ac = Acceptance
Sub Elements:
Ap = Appeal
Ex = Exclusivity
Cl = Clarity
Cr = Credibility
Mt = Material
Mn = Mental
Vf
Ac
Cf
VfAc - CfAc = Nf
The Value Proposition Heuristic

41. Experiment: Treatment Treatment Experience:
How forceful is the
value proposition of
this new set of buttons?
?

42. Experiment: Side-by-side
Treatment Experience:Original Experience:

43. 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.
!

44. • 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
D1
Appeal – “I want it.”
Exclusivity – “I can't get it anywhere else.”
D2
Clarity – “I understand it/you.”
Credibility – “I believe in it/you.”
Maximizing value force

45. • 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
D1
Appeal – “I want it.”
Exclusivity – “I can't get it anywhere else.”
D2
Clarity – “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).”

46. How could this be used to maximize
the value of the employee
engagement experience?
?
Key Question

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

48. Experiment: Newsletters
From This:
To This:
21.2%In Engagement

49. Experiment: Newsletters
From This:
To This:
56%In Engagement

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

51. 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: TP2121
Record Location: MECLABS Research Library
Research Partner: (Protected)

52. 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?
Experiment: Email Reminders

53. 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.
!

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

55. Experiment: Dashboard messaging
From This: To This:
74%In Orders

56. SUMMARY

57. 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: TP1041
Record Location: MECLABS Research Library
Research Partner: (Protected)

58. 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?

59. Which achieved the most donations?
Webpage Intro A:

60. Which achieved the most donations?
Webpage Intro B:

61. 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…”

62. • 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

63. Resources

64. • 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 purchase
at MECLABS.com

65. • Free excerpts from our handbooks
• Benchmark reports
• Annual Wisdom Reports
• Email Awards Reports
• Newsletters and much more
MarketingSherpa
Learn more
at: MarketingSherpa.com

66. Conclusion