As we head into Q4 in #B2B and #DTC, I'm sending an alert about a high impact optimization you're likely missing:

Value propositions.

Here's data on how they can influence willingness to pay by ±20%.

It's also my monument to @aprildunford and @davegerhardt.

Here's the TLDR:

How you position your product and how you describe your product no matter your sales process or if you're #DTC or #B2B *greatly* influences willingness to pay (WTP)

How do we know this and how do you study it?

Here's some data... 2/

We run studies using @profitwell's Price Intelligently product where we collect pricing data on a generically described B2B or DTC product.

We then overlay different positioning/value propositions and collect more data before comparing the difference.

In B2B... 3/

Here's an example from B2B where each line represents a different tested value proposition and the relative impact on willingness to pay.

The specific value props aren't as interesting as the fact that this swings ±20% which is no joke.

In DTC... 4/

Here's an example from the world of DTC.

Notice how the swing in WTP is ±15%

Proper positioning is especially important, because even subscription DTC starts off transactional, so folks like @soundslikecanoe or @jjeremycai need to properly position in premium markets. 5/

Does effectiveness change?

You bet your bottom it does and quite dramatically.

We tested the whole concept of "make you more money" vs. "save you money" over time.

Here's what it looked like in March of 2019.

Little did we know what was going to happen... 6/

Three weeks into COVID the same study with a similar respondent pool now looked like this.

All of a sudden people wanted to be all about saving Benjamins vs. making them. For obvious reasons.

Yet most sales and marketing teams kept preaching the same value props (and lost) 7/

What's it look like now?

Here's data from a few weeks back. Costs are still relevant and probably will be for a bit, because even if a company's doing well, we're shaded by uncertainty.

So what should you do? 8/

You should be doing research/data collection on value propositions at least once every six months or a couple of weeks after something major happens in your industry.

This is on the major positioning. Minor positioning should be tested almost weekly with ads, emails, etc 9/

Go follow @aprildunford and read her book (happy to send you one if you can't afford it). She's the queen here.

Also, @lovevalgeisler, @ggiiaa, @JoelKlettke, @davegerhardt, @ClaireSuellen. They're all doing phenomenal work in this world.

With that, back ...10/

...to the analyst van.

If you got value from this, would love a retweet of the thread.

What type of data or analysis in the world of subscriptions do you want to see next?

Fin/