Does Brand Really Matter? A recent experiment reveals how brand impacts the conversion process

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TODAY’S TEAM

Dr. Flint McGlaughlin – Director, MECLABS Group Flint McGlaughlin is the Director of MECLABS Group. The organization has partnered with key market leaders including The New York Times, Microsoft Corporation, and Reuters Group. Dr. McGlaughlin also serves as the Director of Enterprise Research at the Transforming Business Institute, University of Cambridge (UK) and as a Trustee for Westminster Theological Centre. Dr. McGlaughlin originally studied Philosophy and Theology at the University of London’s Specialist Jesuit College. Today, his primary research is focused on enterprise as transformative agent. His work has won multiple awards and has been quoted in more than 13,000 online and offline sources.

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EXPERIMENT: BACKGROUND

Background: One of the largest metropolitan print news sources in the United States. Goal: To increase the number of online subscriptions. Research Question: Which offer page will result in the highest subscription rate? Test Design: A/B variable cluster test

Experiment ID: TP1651 Record Location: MECLABS Research Library Research Partner: The Boston Globe

Research Notes:

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EXPERIMENT: CONTROL

• The goal of the original page was to get people into the subscription process.

• The original page used a template CMS structure that did very little to leverage the brand of the Boston Globe.

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EXPERIMENT: CONTROL

Offer Page

Step 1 Step 2 Step 3 Step 4

• The unbranded template is used throughout the entire conversion process

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EXPERIMENT: TREATMENT

• The treatment slightly adjusts the CMS template to emphasize the “Boston Globe” brand.

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EXPERIMENT: TREATMENT

• Boston Globe branding is made prominent throughout the entire conversion process.

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EXPERIMENT: SIDE-BY SIDE

Will emphasizing a well-known brand in the online subscription process generate more response?

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EXPERIMENT: RESULTS

Design Conversion Rate

Control (Non-branded) 1.32%

Treatment (Branded) 1.86%

Relative Difference 40.3%

40% Increase in Total Subscriptions The branded subscription path increased the rate of subscriptions by 40.3%

What you need to understand: By simply emphasizing the well-known brand of The Boston Globe, the treatment subscription path generated 40.3% more subscriptions than the generically-branded control.

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How should marketers conceive of brand?

KEY QUESTION

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BRAND IS NOT…

a logo

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BRAND IS NOT…

a slogan

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BRAND IS NOT…

a spokesperson

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BRAND IS NOT…

a color-palette

Our problem is not brand confusion, but rather confusion

about brand

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UNDERSTANDING BRAND

Brand is the aggregate experience of the value proposition

Unifying Insight

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Key Principles

“AGGREGATE EXPERIENCE”

1. Brand, represents the sum total of experiences in the market place, particularly those that connect to you.

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Key Principles

“AGGREGATE EXPERIENCE”

1. Brand, represents the sum total of experiences in the market place, particularly those that connect to you.

2. Brand exists in the mind. It represents a form of mental shorthand. It stands for a decision collective and represents the default choice. As such, it implies expectation.

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WHAT IS YOUR EXPECTATION?

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WHAT IS YOUR EXPECTATION?

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Key Principles

“AGGREGATE EXPERIENCE”

1. Brand, represents the sum total of experiences in the market place, particularly those that connect to you.

2. Brand exists in the mind. It represents a form of mental shorthand. It stands for a decision collective and represents the default choice. As such, it implies expectation.

3. Brand does not make a promise; it creates an expectation. The strength of the brand is derived not from declaration, but through expectation.

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est. 1892

est. 1876

est. 1867

est. 1806

est. 1866

est. 1880

est. 1850

est. 1869

est. 1853

“VALUE PROPOSITION”

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CREATING AN EXPECTATION

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“AGGREGATE EXPERIENCE”

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DEFINING BRAND

Brand is the aggregate experience of the value proposition

Key Definition

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Key Principles

“VALUE PROPOSITION”

1. All brand should influence choice. More specifically, brands should be built around the answer to a single question: “Why should I buy from you rather than any other competitor?”

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“You generalists pride yourselves on being creative – whatever that awful word means. You cultivate the mystique of creativity. You regard advertising as an art form – and expect your clients to finance expressions of your genius.”

We directs do not regard advertising as an art form. Our clients don’t give a damn whether we win awards at Cannes. They pay us to sell their products. Nothing else.”

“Your favorite music is the applause of your fellow art directors and copywriters. Our favorite music is the ring of the cash register.”

“You generalists use short copy. We use long copy. Experience has taught us that short copy doesn’t sell. In our headlines, we promise the consumer a benefit. You generalists don’t think it is creative.

“You have never had to live with the discipline of knowing the results of your advertising. We pack our advertisements and letters with information about the product. We have found out we have to – if we want to sell anything.”

STRONG WORDS FROM DAVID OGILVY (1986)

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Value Proposition Question: If I am your ideal prospect, why should I buy from you rather than your competitors?

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 evidence.

4. A value proposition must differentiate you from your competitors. In at least one way, you must have an “only” factor.

“VALUE PROPOSITION”

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WHAT IS THE VALUE PROPOSITION? Audience Example

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WHAT IS THE VALUE PROPOSITION?

Audience Example

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WHAT IS THE VALUE PROPOSITION? Audience Example

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Key Principles

“VALUE PROPOSITION”

1. All brand should influence choice. More specifically, brands should be built around the answer to a single question: “Why should I buy from you rather than any other competitor?”

2. Every web design element (logo, color scheme, imagery, slogan, etc.) should either state or support the essence of your primary value proposition.

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Background: Well-known B2C company offering an online encyclopedia subscription product

Goal: To get visitors to sign up for a free trial

Primary Research Question: Which landing page will have the highest subscription rate?

Test Design: A/B split test (variable cluster)

Experiment ID: Encyclopedia Britannica Location: MarketingExperiments Research Library

Research Notes:

EXPERIMENT: BACKGROUND

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• The headline does not communicate the value proposition

• The “member benefits,” which are primary selling points, are in a separate column, not directly in the customer’s eye path

• The images on the left and bottom do not help communicate anything about the service or why they should try it

EXPERIMENT: ORIGINAL PAGE

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• The new headline and sub-headline describe exactly what you get

• Bullets are used to emphasize the valuable features of the service in an easy-to-read format

• The new image is clearer and includes a caption that re-emphasizes the value proposition

EXPERIMENT: OPTIMIZED PAGE

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• “Activate Your Free Trial” is used instead of “Please Enter Your Billing Information” or “Subscribe Now” messaging

• Savings over the print edition instantly shows the customer the “value”

• Button copy emphasizes the “receiving” aspect of the transaction instead of “giving” language, such as “submit”

EXPERIMENT: OPTIMIZED PAGE

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Treatment Original

EXPERIMENT: SIDE-BY-SIDE

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103% increase in conversion rate The optimized page increases conversion by 103%

EXPERIMENT: RESULTS

Subscription Path Conversion Rate Relative Diff. vs. Control

Statistical Significance

Original 1.00% - -

Optimized 2.03% 103% 95%

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SUMMARY: The 5 Most Common Branding Errors

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SUMMARY: MOST COMMON BRAND MISTAKES

MISTAKE #1: Confusing brand essence with brand cues.

MISTAKE #2: Assuming the brand is a promise rather than expectation

MISTAKE #3: Believing the brand is owned by the organization rather than the individual prospect. Brand exists in the mind.

MISTAKE #4: Divorcing the brand messaging from the company value proposition.

MISTAKE #5: Thinking that the work of the brand begins and ends with the first part of the messaging.

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Live Optimization

Joe Pulizzi Founder

Content Marketing Institute

Just Announced: KEYNOTE SPEAKERS

Flint McGlaughlin Managing Director and CEO

MECLABS

Visit MECLABS.com/LGKeynote

Ninan Chacko CEO

PR Newswire

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Live Optimization The Nature Conservancy

Primary objective(s): Encourage visitors to join the organization and donate Primary audience: Nature enthusiasts URL: http://bit.ly/10WTNGp

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Live Optimization Healthcare Success Strategies

Primary objective(s): Lead generation Primary audience: Healthcare facilities URL: http://bit.ly/18jEHgn

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Live Optimization Go Mini’s

Primary objective(s): Motivate people to request a quote Primary audience: Customers in need of storage solutions URL: http://bit.ly/15Ijlci

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Live Optimization C.R. England

Primary objective(s): Show benefits of being a truck driver and creating a job application path Primary audience: People interested in pursing a career in truck driving URL: http://bit.ly/1aoreVm

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LIVE OPTIMIZATION

Description: XeroShoes make sandals that mimic barefoot running and walking. Page Objective: Click through to learn more.

XeroShoes.com

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