MECLABS_YouTube_PVD

1. YouTube Classes

1.1. Unlocking the Power of Incentive: Three keys to mastering perceived value differential

1.1.1. 1. Email Marketing Incentive, which is the most effective

1.1.1.1. 1. Printed email marketing report.

1.1.1.1.1. PVD = Pv - C$n

1.1.1.1.2. $420 = $450 - $30

1.1.1.1.3. This seems the best, do not know for sure until I test.

1.1.1.1.4. **PVD is ultimately determined by a behavioral test** . For instance, after testing both incentives, you might discover the actual preceived value of a digital book is greater tha estimated and will generate a higer return.

1.1.1.2. 2. Digital marketing report - online - digital book

1.1.1.2.1. PVD = Pv - C$n

1.1.1.2.2. $399 = $400 = $1

1.1.1.3. 3. Pre-event email marketing training - on sight training

1.1.1.3.1. PVD = Pv - C$n

1.1.1.3.2. $225 = $500 - $275

1.1.2. 2. Amazon gift card incentive. Cost of offer the same, which one performed best?

1.1.2.1. 1. 1 of 20 $25 gift cards

1.1.2.1.1. 1 in 20 chance but half the amount

1.1.2.2. 2. 1 of 10 $50 gift cards

1.1.2.2.1. 1 in 10 chance, but double the amount.

1.1.2.3. Which is best, and what is unique?

1.1.2.3.1. Unique - both cost the same amount.

1.1.3. 3. Abandoned cart email

1.1.3.1. Control

1.1.3.1.1. 1. We are not sure if you received our previous email,

1.1.3.1.2. 2. but this is our last attempt to contact you.

1.1.3.1.3. 3. Several days ago, you started to order [product] from [website].

1.1.3.1.4. 4. Somehow, you were unable to complete the form.

1.1.3.1.5. 5. Was the problem on our end or yours? Is there any way we can help?

1.1.3.1.6. 6. There are two ways to complete your order in two minutes or less.

1.1.3.1.7. 7. P.S. If you do not respond to this email, we will remove your information from our servers. There is no need to unsubscribe.

1.1.3.2. Treatment

1.1.3.2.1. 5. Is there any way we can help?

1.1.3.2.2. 6. We apologise for any difficulty you may have had with our ordering system. Our customer service manager has approved a special price of $19.95, if you would like to give us one more chance.

1.1.3.2.3. 7. There are two ways to complete your order at the discounted price.

1.1.3.2.4. Treatment increased orders by 263.2 %

1.1.3.2.5. Power of incentive

1.1.4. 4. Exam prep incentive

1.1.4.1. Control

1.1.4.1.1. 30% discount off the upgrade

1.1.4.2. Treatment A

1.1.4.2.1. Discount the upgrade by the original

1.1.4.3. Treatment B

1.1.4.3.1. Upgrade and get 3 access with no obligation to renew

1.1.5. If using incentive and not having a major impact, possibly using the wrong incentive.

1.1.6. If not using incentive, may be a key to unlocking value.

1.1.6.1. Few understand incentive, how it connects to the value proposition - and to the fulcrum.

1.1.7. Introduce **Perceived Value**

1.1.7.1. Scientific way to look at Perceived Value.

1.1.7.1.1. **Perceived Value Differential**

1.1.7.1.2. Learning how to calculate, can transform business, unlock a whole new level of conversion performance.

1.1.7.1.3. Get PVD right, it can transform the metrics of the business. Remarkable performance achieved.

1.1.8. Unlock value using PVD.

1.1.8.1. C = 4m +3v + 2(i - f) - 2a © MECLABS

1.1.8.1.1. C = Probability of conversion

1.1.8.1.2. m = Motivation of user

1.1.8.1.3. v = Clarity of the value proposition

1.1.8.1.4. i = Incentive to take action

1.1.8.1.5. f = Friction elements present

1.1.8.2. Incentive is the most effective way to reduce friction and anxiety.

1.1.8.2.1. Once I have done everything on the page that I can to reduce friction and anxiety.

1.1.8.2.2. I can not eliminate friction. The only way is to eliminate the ask. Can not eliminate the ask.

1.1.8.3. Key principles

1.1.8.3.1. 1. The objective of incentive is to **"tip the balance** of emotional forces** from negative (exerted by friction elements) to positive.

1.1.8.3.2. 2. Often, businesses will try one incentive offer and then quit. **Incentives must be tested.** Until I find one that gives a major boost. I must assume I have not yet found an ideal incentive.

1.1.8.3.3. 3. Determine the ideal incentive consists of three primary components.

1.1.8.3.4. Psycolcogical Calculus taking place.

1.1.8.4. Discount is a cost, impacts the profit.

1.1.8.4.1. How to achieve a **discount** without achieving the equivalence in cost.

1.1.9. PVD Unpacked

1.1.9.1. PVD = Vp - C$n © MECLABS

1.1.9.1.1. PVD = Perceived Value Differential

1.1.9.1.2. Vp = Perceived value of incentive

1.1.9.1.3. C$n = Net delivered cost of incentive

1.1.9.2. Examples

1.1.9.2.1. 1. Incentive costs $5 but Pv of $49

1.1.9.2.2. 2. Incentive costs $19 but Pv of $30

1.1.9.2.3. NOTE: Of the feasible incentives, I want to identify those with higher estimated PVD because they are more likely to drive the biggest differential between net revenue and net delivered cost.

1.1.9.3. Can misjudge the Pv.

1.1.9.4. Key principles

1.1.9.4.1. 1. High PVD is predicated (based on) on both market-driven elements and marketer-driven elements

1.1.9.4.2. 2. For **market-driven** elements, I am seeking an item that combines high market value with low delivery costs (e.g., bundled, electronic, outsourced).

1.1.9.4.3. 3. For **marketer-driven** elements, I am seeking to imporve the presentation (Pv) of the encentive.