Introduction to Your Most Trusted Resource
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1 Introduction to Your Most Trusted Resource Jon Powell Sr. Manager, Executive Research & Development MECLABS Arun Kamoji Marketing Manager
2 Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include but are not limited to risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.
3 Jon Powell Sr. Manager, Executive Research & Development
4 An Experiment Introduction to Your Most Trusted Resource
5 An Experiment: Background Experiment ID: TP2061 Record Location: MECLABS Research Library Research Partner: [Protected] Background: An established financial institution offering online savings accounts. Goal: To significantly increase click-through rate. Research Question: Which design will produce the most click-through? Test Design: A/B/C/D split test
6 An Experiment: The Control
7 An Experiment: Treatment 1
8 An Experiment: Treatment 2
9 An Experiment: Treatment 3
10 An Experiment: Side-by-side Control Treatment 1 Treatment 2 Treatment 3
11 An Experiment: Results Design 42% Increase in Conversion Treatment 1 (copy rich) outperformed the original by 42.34% Conversion Rate Relative Difference The Control 0.51% -- Treatment % 42.34% Treatment % 24.12% Treatment % 26.27%
12 An Experiment: Results What was it about this that generated the most response?
13 The Research Science-based Optimization Institute Conducts both primary and secondary media and messaging research and strategy from actual behavioral tests with real customer data. 20 years of active research, including over: 20,000 sale path experiments 1 billion tested s 500,000 executive interviews 2,200 brand-side case studies
14 The Results: Significant Findings i. Customers/Leads are people, not targets. ii. People are not falling into the sales funnel, they are falling out. iii. We are not optimizing webpages, call guides or s; we are optimizing thought sequences. iv. To optimize thought sequences, we must enter into a conversation and guide it toward a value exchange.
15 Is there a systematic, scientific approach that can significantly increase our connection to customer thought sequences in and thus drive significant response?
16 The Results: A New Approach Messaging Optimization Heuristic eme = rv(of + i) (f + a) eme = messaging effectiveness index rv = relevance to the consumer of = offer value (why) i = incentive to take action f = friction elements of process a = anxiety elements of process
17 The Results: A New Approach eme = rv(of + i) (f + a) Today we are going to focus on the four elements that cost the least to adjust.
18 Relevance Introduction to Your Most Trusted Resource
19 Relevance eme = rv(of + i) (f + a) Definition The immediate compatibility of the message to the recipient s motivations.
20 Relevance eme = rv(of+i) (f+a) Key Observations Customers aren t trying to open and click your s, they are trying to eliminate them. To prevent elimination, the most effective strategy a marketer can take is to ensure an immediate personal connection with the customer. This can be established on two levels: A customer s internal biases A customer s external events
21 For Example: Original Case Study eme = rv(of+i) (f+a) Simple key statements are used to generate a relevant connection to the user: References to previous purchase patterns being a XXXXX account holder Personal name Monica is used in the greeting Reference to personal behavior saving for next your vacation, home, etc.
22 Additional Example eme = rv(of+i) (f+a) From This To This 410% In Click-rate 13% In Daily Total Rev.
23 Offer Introduction to Your Most Trusted Resource
24 Offer eme = rv(of + i) (f + a) Definition The value you promise in exchange for an action (i.e. a click)
25 Offer eme = rv(of+i) (f+a) Key Observations You may think that the offer is the product that you want to sell. In reality, however, the offer is the additional information a customer receives in exchange for a click. What is the most effective way to get a click? Is it to give them an entire product pitch? Or just part? Is it to draw attention to what they have to do? Or to what they get?
26 For Example: Original Case Study eme = rv(of+i) (f+a) Control CTA Treatment CTA Click here to earn more today! Original: The call-to-action in the control is focused on what the prospect has to do ( learn & open ) rather than what they might get. This just creates anticipated Friction and Anxiety rather than Value. Optimized: The new call-to-action focuses on what the client gets ( earn more money ) if they are willing to click to the next step.
27 Additional Example eme = rv(of+i) (f+a) From This To This 104% In Click-rate
28 Friction Introduction to Your Most Trusted Resource
29 Friction eme = rv(of + i) (f + a) Definition Psychological resistance to a given element anywhere in the process.
30 Friction eme = rv(of+i) (f+a) Key Observations We often generate unnecessary problems in our s by the amount of content we have and/or the way we display it. To the customer, this is perceived as: Unnecessary Difficulty Unnecessary Length In most cases, the objective is to minimize, not eliminate friction. If you eliminate all friction, you eliminate the click.
31 For Example: Original Case Study eme = rv(of+i) (f+a) In the control , Friction is potentially caused by three factors: Unrelated visual elements competing for the recipient s attention. Multiple unrelated calls-to-action from which the recipient must choose between
32 Additional Example eme = rv(of+i) (f+a) From This To This 53% In Click-Rate
33 Anxiety Introduction to Your Most Trusted Resource
34 Anxiety eme = rv(of + i) (f + a) Definition Psychological concern stimulated by a given (or unaddressed) element in the process.
35 Anxiety eme = rv(of+i) (f+a) Key Observations Anxiety is just as lethal to conversion as friction. Try and mitigate anxiety rationally and you are likely to fail Though created from legitimate concern, its impact in the mind is often disproportionate to the reality of risk. In , anxiety is most often experienced as a form of intense knee-jerk skepticism and caution.
36 For Example: Original Case Study eme = rv(of+i) (f+a) In the control , Anxiety is potentially activated by the following factors: The copy and design choices of the top banner image: Overly-clever statement Lady kicking a leopard couch imagery The additional competing banner ad at the bottom of the .
37 Additional Example eme = rv(of+i) (f+a) From This To This 60% In Click-Rate 159% In Completion Rate
38 Arun Kamoji Marketing Manager
39 What s Next 1. Understanding your audience 2. Developing programs 3. Beyond
40 Understanding Your Audience Build trust Increase engagement Testing strategy Do you know who your customers are? Personas and segmenting Map content to buying cycles
41 Developing Programs Nurture programs Action based programs Welcome program Post Purchase Renewal program Buying signals Keep testing Are you engaging and moving them along the journey?
42 Beyond Create digestible content Ensure the message is consumable Sales and marketing alignment Are you creating content that drives results? frequency
43 Get a free bookmark and additional tools MECLABS.com/DF14 Get Jon s and Arun s slides immediately. Get 20+ additional case studies connected to the strategic formula. Get $100 off on tickets to MarketingSherpa s Summit.
44
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