LONDON, 09 June 2016 – 83% of Marketers pay little attention to the Customer Value Propositions (CVPs) in their strategies, campaigns and ads. They do not practise CVP & Message Effectiveness Optimisation (MEO), and then wonder why their strategies, campaigns and ads underperform business-wise when deployed.
That’s one of the findings identified by Fournaise – one of the World’s Leading MarTech Companies in the field of Marketing Effectiveness Tracking & Boosting (MarkEff) – after analysing more than 900 Marketing strategy documents, campaign briefs, effectiveness reports created and/or provided by/to Marketers, and internal/external communication materials between Marketers and their agencies over the last 12 months.
Over the last 15 years Fournaise Tracked & Boosted the Effectiveness of 2.5+ million Product, Pricing, Channel, Communication, Brand & Marketing Strategies, Campaigns & Ads, for Fortune 500 & Large organisations, SMEs, Start-Ups and Top Ad/Media Agencies – it knows and measures what works, what does not, where, when, on which audience segments and as importantly it understands why. From there Fournaise advises Management & Marketers on what they should do to push their Marketing to deliver better effectiveness, results and ROI.
Fournaise tracked that:
1) Only 17% of Marketers really understand and embrace what a CVP is
Only 17% of Marketers have (and apply) the correct definition of what a Customer Value Proposition (CVP) is: a promise of potential value that a business delivers to its customers, and in essence is the reason why a customer would choose to engage with the business. It highlights the relevance of a product offering by explaining how it solves a problem or improves the customer’s situation, the specific value against the customer’s needs and the difference to competitors.
- Data-driven, these Marketers heavily focus their strategies, campaigns and ads on product/service (features) education, and on pains-solving or needs-fulfilling demonstrations.
- They practise CVP & Message Effectiveness Optimisation (MEO) as a standard operating procedure, and build their messages around science-based CVP Architectures (that become the heart of the marketing/creative briefs they provide to their agencies).
- When it comes to generating business results, their strategies, campaigns and ads usually perform at or above their effectiveness expectations, and their CEOs are usually satisfied with their Marketing Performance and ROI. We can therefore define them as ROI Marketers.
- And when they face an under-performance situation, the first area they focus on is to understand if there is an effectiveness issue with the CVP (message), and if yes why it is not triggering the audience (before looking at other components such as creativity and media), to then identify the best corrective actions.
“We tracked that ROI Marketers clearly understand their job is to generate incremental customer demand for their products/services (to deliver more sales, more market share, more prospects and/more conversions for the business), and that it always starts with the “what”, i.e. bringing the most relevant CVP (message) to the audience” said Jerome Fontaine, Global CEO & Marketing Performance Chief of Fournaise.
2) The balance 83% of Marketers think “Form, Style & Awareness” are more important than “CVP & Message” – they are the Traditional Marketers
For the balance 83% of Marketers, the CVP is in the creativity. They (wrongly) believe that a great creative approach (the famous “big idea”), great art direction, pretty pictures, a great piece of music, a celebrity and/or a great tagline are strong enough CVPs in themselves to demonstrate customer value (and therefore generate engagement):
- Hence, there are no (or poor/weak) product, service (features) value education, pains-solving or needs-fulfilling demonstrations in their campaigns and ads.
- These Traditional Marketers focus heavily on “how” and “where” the message is to be delivered and not enough (or much less) on “what” message should be delivered to best trigger and engage with the audience.
- By using techniques/tools such as split-run testing they think they are at the forefront of Marketing Effectiveness Tracking & Boosting (MarkEff) when in reality they are often wrongly applying or under-utilising these very techniques/tools. “Case in point: we’ve seen Marketers running multiple creative variations of their ads in the media (rotating headlines with minor copy changes, pictures, colours, talents, etc.), split-run testing them, spending hours analysing from there a huge amount of results data, noticing under-performance across the board, creating even more creative variations (new pictures, colours, etc.), split-run testing them again, to get the same under-performance results – without stopping for one minute to ask themselves if they are first and foremost advertising the most relevant CVP (message) for the target audience they are going after” Fontaine explained.
- When it comes to generating business results, their strategies, campaigns and ads usually under-perform, and their CEOs are most of the time not impressed by their Marketing Performance and ROI.
“These are the Marketers who would ask us if by creating a great jingle or song for their new campaigns/ads, or by using white instead of yellow as background colour, they would see a big increase in effectiveness” said Fontaine.
“We noticed they tend to have a lot of agency pitches, in the hope of finding the creative answers they are looking for. In the AIDA model these Traditional Marketers pay more attention to the “A” (Awareness) part and much less to the “IDA” (Interest-Desire-Action) part, thinking that awareness + form + style will be enough to deliver results. In a hyper-competitive business environment with increasingly-sophisticated customers, performance, effectiveness and ROI results show their approach is wrong” Fontaine said.
“There is no miracle under the sky: the “what” will always be more important than the “how” and the “where” if Marketers want to deliver better effectiveness and better business results. ROI Marketers have long understood that, while Traditional Marketers are still swimming against the current and not going very far” Fontaine concluded.