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

The teaching restarts @ 1:56 (due to audio issues)

(This article was originally published in the MarketingExperiments email newsletter.)

The use of incentives is one of the most effective ways to counter friction and anxiety, therefore it can have a significant impact on conversion. But if you are currently using an incentive and it’s not having a major impact, you’re probably not using the right one — or your presentation is lacking.

In this video replay, Flint McGlaughlin not only gives messaging strategies for presenting incentives but also explains how you can identify the best incentive for your offer by using the MECLABS Perceived Value Differential Heuristic. He shows how to apply it with step-by-step instructions and examples.

PVD = Vp — C$n

“PVD” = Perceived Value Differential

“Vp” = Perceived Value of incentive

“C$n” = Net delivered Cost of incentive

Watch the video to learn how you can combine customer psychology with the power of PVD, rigorous testing and a smart set of hypotheses around incentives to maximize response rates, generate more leads and increase sales.

Here are some key points in the video:

  • 4:53 Case study – Choosing the best Amazon gift card incentive
  • 8:15 Case study – Online people search company addresses cart abandonment issue with incentive
  • 16:33 The MECLABS Conversion Index
  • 19:25 Key Principle #1 The objective of an incentive
  • 25:37 Key Principle #2 Test your incentive
  • 26:10 Key Principle #3 The ideal incentive has three components
  • 27:49 Perceived Value Differential: 3 principles
  • 36:32 Four ways to improve the presentation of the incentive
  • 42:44 A step-by-step example of how to do a PVD calculation

Related Resources

MECLABS Landing Page Optimization Online Course – This on-demand course teaches more about incentive, PVD and ROI

Customer-First Marketing Strategy: The highest of the five levels of marketing maturity

Digital Marketing: 3 test ideas to optimize your incentive offers

Finding the Ideal Incentive

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  1. Robert Rutledge says

    Remarkable teaching AGAIN. Thank you.

    My son is in business school at Auburn. Do you ever go there to lecture?

  2. Daniel Burstein says


    Thanks for watching. Flint has not lectured at Auburn.

    However, here is Flint’s lecture from Harvard in case you would like to share it with your son: https://meclabs.com/research/lecture/harvard-university-value-proposition-flint-mcglaughlin

  3. cino says

    Thanks for sharing, interesting!

  4. Frank says

    Best Yet.

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