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A Review of Key PrinciplesLanding Page Optimization


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Session 2 Lesson Plan

ORIENTATION

Landing Page Optimization

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Conversion Sequence

Wherein:

C = Probability of conversion

m = Motivation of user

v = Clarity of the value proposition

i = Incentive (additional) to take action

f = Friction elements presenta = Anxiety elements present

C = 4m + 3v + 2(i-f) - 2a

Session 8 Orientation


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i. People dont buy from websites, people buy from people

ii. You dont optimize websites; you optimize thought

sequences.

iii. To optimize thought sequences, you must enter into a

conversation.

iv. Then you must guide the conversation toward a valueexchange

Landing Page Optimization Meta-theory

Session 8 Orientation


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VALUEPROPOSITION



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1. Your value proposition is the primary reason why your ideal prospect should

buy from you rather than you competitors.

This requires you to differentiate your offer from competitors.

You may match a competitor on every dimension of value except one.

In at least one element of value you need to excel.

In this way you become the best choice for your optimum customer.

2. There are two skills necessary to leverage the power of a value proposition

for your landing pages: the ability to 1) identifyand 2) expressan effectivevalue proposition.

FKey Principles

Session 8 Value Proposition


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FKey Principles

ONE: A value proposition is not usually determined, it is discovered. It grows out of

need. We must avoid a sales-driven approach to product development. You

should develop products for the market.TWO:You are answering this question: Why should my ideal prospect buy from me

instead of a competitor?

THREE: Compare your answer with the claims of your main competitors.

FOUR: Refine your value proposition until you can articulate it in a single, instantly

credible, sentence

FIVE: In the end, you must test your Value Proposition.

Five Points for Developing an Effective Value Proposition:



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FKey Principles

Wherein:

Opr = Optimize Product Factor

Oprn = Optimize Presentation Factor

Ocnn = Optimize Channel Factor

Opr > Oprn > Ocnn

1. Product Factor: Ensure you have an effective

value proposition before you try to express it

to prospects

2. Presentation Factor: Ensure your landing page

clearly expresses your value proposition

before you spend $ driving traffic to it.

3. Channel Factor: Only then, drive as much

(profitable) traffic to your site as possible.

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Three key elements:

1. Congruence- having every element of your page either state the value proposition or

support the value proposition.

2. Continuity- Making certain that each step of the buy process either states or supports

the value proposition. (All the collateral supports or states value prop).

3. Credibility - Making certain that every statement of value is communicated in a waythat is instantly credible.

Holistic approach: Every element at every step along the buy process must either

state or support your value proposition.

FKey Principles



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MOTIVATION


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FKey Principles

1. Motivation, which has the highest coefficient in the conversion

heuristic, is made up of two components: the 1) magnitudeand 2)

natureof the customers demand for the product.

2. To determine the nature and the magnitude of customer desire, you

must look at your channels. The best way to accomplish this is

through development of an Channel Map.

Session 8 Motivation

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FKey Principles

Five Steps of Channel Mapping:

1. Measure Each Channelidentifying the primary independent sources (Channels) of

traffic to your landing page and establish the essential metrics to measure their

performance.

2. Rank Each ChannelOrganize and prioritize each channel by descending

performance level.

3. Profile Each ChannelIdentify the unique characteristics of customers within a top

performing channel that make it particularly effective.

4. Optimize for Each ChannelAs much as possible, connect each channel to a

channel-specific landing page using relevance.

5. Discover New ChannelsIdentify additional channels that match the unique

characteristics of customers within your top performing channels


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FKey Principles

1. Relevance = Conversion

2. Relevance is achieved by matching the landing page message to

two channel-specific factors:

1) Customer profiles (determined by Channel Map)

2) Customers paths(determined by conversation elements a

customer encounters prior to arrival)


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FRICTION


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Conversion Sequence

C = 4m + 3v + 2(i-f) - 2a

Definition: Friction

(Physics): A force that resists the relative motion or tendency

to such motion of two bodies in contact.

(Marketing): Psychological resistance to a given element in

the sales process.

FKey Principles

Session 8 Friction


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1. One of the most effective ways to increase conversion is to decrease friction. Indeed,

our experiments suggest that there is a disproportionately high return on efforts to

reduce friction.

2. The objective is to minimize not eliminate friction. If you eliminate all friction you,

necessarily, eliminate the sale.

3. Once friction has been minimized, you seek to overcome the remainder with

incentive.

Friction Elements Incentives

ABANDON COMPLETION

FKey Principles

Session 8 Friction

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4. Length-oriented friction can be used to control the quantity and quality of

the emails you capture.

QualityQuantity

Decreasing, or

dialing down

friction, results

in increased lead

quantity.

Increasing, ordialing up

friction, creates

increased lead

quality.

FKey Principles

Session 8 Friction

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Examples of Difficulty (dT)

Design Elements

Eye-path

Options Selection

Button Design

Organization

Flash Video

fSC= lT+ dT

Examples of Length (LT)

Design Elements

Length of pages

Field Number

Field Layout

Steps in a process

FKey Principles

Session 8 Friction


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INCENTIVE


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FKey Principles

1. The objective of Incentive is to tip the balance of emotional forces from

negative (exerted by Friction elements) to positive.

2. Often, businesses will try one incentive offer and then quit. Incentives must

be tested. There is an ideal incentive. Until you find one that gives you a

major boost, you must assume you have not yet found the ideal incentive.

Friction Elements Incentives

ABANDON COMPLETION

Session 8 Incentive


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3. Determining the ideal incentive consists of three primary

components:

Marketing Intuition

Perceived Value Differential (PVD)

Return on Incentive (ROIc)

FKey Principles

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Session 8 Incentive


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OPTIMALITYUsing PVD to

narrow-down and

determine the

optimal incentives to

test

Ideal

Incentive

All

Incentives

FEASIBILITYUsing marketing

intuition to

determine which

incentives are

relevant to the

audience as well as

cost effective

ACTUALITYTesting and using ROIc

calculations to best

performing incentive

The path to finding the

ideal incentive

FKey Principles

Session 8 Incentive


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FKey Principles

PVD = Vp - C$n

Wherein:

PVD = Perceived Value Differential

Vp = Perceived Value of Incentive

C$n = Net delivered cost of Incentive

Session 8 Incentive


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FKey Principles

4. High PVD is predicated upon both market-driven elements as

well as marketer-driven elements.

5. As for market-drivenelements, you are seeking an item thatcombines high market value with low delivery costs. (e.x.,

bundled, electronic, outsourced)

6. As for marketer-drivenelements, you are seeking to improve

the presentation of the incentive.

Session 8 Incentive


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FKey Principles

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7. Incentives must be tested.

8. The ultimate and final indicator that you have discovered the ideal

incentive is ROIc. There are two primary ways to measure this: 1)Total ROIc and 2) Percent ROIc.

Session 8 Incentive


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Total ROIc: The total dollardifference between incentive offer cost and net

increase in sales over a specific time period. Focuses on total volume of

return.

Percent ROIc: The percent difference between cost and net increase in sales for

a specific time period. Focuses on efficiency of return.

ROIc = P$n - C$n

Wherein:

ROIc = Total Return on Incentive

P$n = Net profit impact from Incentive


FKey Principles

ROIc% = (P$n - C$n) / C$n * 100

Wherein:

ROIc% = Percent Return on IncentiveP$n = Net profit impact from Incentive


Session 8 Incentive


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ANXIETY


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FKey Principles

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1. Anxiety is just as lethal (and growing) to conversion as friction.

2. If you think about mitigating anxiety in rational terms, you are likely to fail in

your efforts. Though anxiety often is stimulated by a legitimate concern, its

degree/impact is often disproportionate to the measure of risk.

3. Anxiety is also localized in the buy process. It is closely associated with the

geography of the page.

Session 8 Anxiety


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FKey Principles

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4. Therefore, you must seek to relieve and/or correct for anxiety at three

different levels:

Specificity

Proximity

Intensity

Specificity

IntensityProximity

Session 8 Anxiety


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1. Specificityis the level to which your corrective measures address

precisely the source of customer anxiety and work to counteract it.

2. Proximityis the degree to which your corrective measures are placed

such that they are experienced at the same time as, or as soon after the

moment that the anxiety is stimulated as possible.

3. The Intensitylevel of the corrective measure must address both the

substance and perception of the concern.

In terms of substance, you need to address the rational foundation of the

source of anxiety as it relates to the realistic level of risk.

In terms of perception, you must also overcome the extra level of concern

stimulated by the amplifying affect of fear-borne anxiety.

FKey Principles

Session 8 Anxiety


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OPTIMIZATIONPROCESS


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Session 8 Optimization Process

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