A working knowledge of mathematics has always been key to direct-marketing success - knowing how to calculate response rates, ROI, campaign half-lives and other key metrics is vital to using information from marketing campaigns to make decisions about continuing efforts.
But ... algebra?
Bob Lorum, president of MarketingSherpa, had a lot of specialized-information marketers scratching their heads when he threw this algebraic equation at them during SIPA's 25th Annual Mid-Year Marketing Conference in Las Vegas in December: C=4m+3v+2(i-f)-2a2.
Whether or not you understand the numeric values in the formula, understanding what the letters represent is vital to your success in converting visitors to your Website to buyers of your products. The "C" represents just that - the probability of getting that conversion. The other numbers and letters represent what you need to improve that probability.
It starts with motivation
The first element in the expression to the right of the equal sign, "m," represents motivation - the reason why someone would want to buy your product.
Motivation is the most powerful aspect of your probability of conversion, Lorum said (hence the multiple of four), but it is the hardest to control. You need to understand what motivates your target audience, he said, and you can best do that through surveys, order histories and Website metrics.
He suggested that marketers analyze their traffic channels to see what channels work most effectively with the audience. And to make sure you tap into this motivation most effectively, ensure that your initial marketing effort - be it an ad on another Website, a marketing e-mail or some other kind of effort, is congruent with the landing page. If the landing page doesn't provide the same kind of motivation that brought the target there in the first place, you've lost the person who responded.
Value proposition says ‘buy mine'
The next element, the "v" or value proposition, is the reason why a person should buy your product. It should be unique in your marketplace, offering something better than what the visitor can get anywhere else.
Just be sure that, while you tell the target your product or service is unique and better, you make the value proposition believable. People recognize hype, so if your product sounds too good to be true, the value proposition is probably not true.
At the same time, the value proposition should be in line with your brand or overall company message, Lorum said, which only adds to its believability.
The value proposition also should communicate benefits, not features, he added. And all elements on the landing page should support the value proposition.
Give potential buyers incentive
Next in the equation comes "i" for incentive, which Lorum described as an appealing element of the value proposition to stimulate or induce a call to action relative to that proposition. An incentive should be some kind of product with a high perceived value that is complementary to the primary product or service. In specialized-information publishing, it's known as a "premium."
In using an incentive to convince the prospect to buy the primary product, the incentive should be located on the Web page close to the call to action. Just like the "but wait ..." phrase in a television commercial for some kind of TV-sales-only product, the incentive explanation comes just as you're getting ready to tell the prospect how to order: "But wait, if you order now, we'll send you this ... absolutely free!"
Finally, test different kinds of incentives to found out which work best.
Overcome friction
The equation's next element, "f" for friction, is a counterbalance to incentive - it's something your message has to overcome. Lorum described friction as the psychological resistance to any given element in the sales process. Make the purchase as smooth as possible.
Just like in a car's engine, it's impossible to eliminate the friction in a sales process. But you should do what you can to minimize it.
Don't ask for too much information from the purchaser - the more blanks he or she has to fill in, the higher the likelihood of the loss of the sale. In that first order, getting the person's name, delivery address (and only an e-mail address will do for a downloadable product) and payment information can be sufficient.
Another way to cut down on friction is to improve the flow of the order page. For example, using a two-column format gives improved flow over three columns. Remove any distractions on the page that don't add to the value proposition - use graphics only where they support that proposition.
Avoid causing anxiety
The final element of the formula is "a" for anxiety, any concern in the prospect's mind that is stimulated by any given element in the sales process. Once again, asking for too much information on the initial order can cause anxiety as well as cause friction.
Overcome the prospect's anxiety about the security of any information submitted by using security credibility indicators, such as the logo of whatever kind of security system you use to protect data.
Don't introduce too many options, thereby increasing the prospect's anxiety, by asking them to make too many decisions. Do use testimonials and trusted source logos to help overcome anxiety.
Bob Lorum, MarketingSherpa, 499 Main Street, Warren, RI 02885 401.247.7355
E-mail: bob.lorum@marketingsherpa.com Web: http://www.marketingsherpa.com/
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