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Value Propositions and Willingness to Pay

Patrick Campbell Jun 4 2018

In the Mad Men days of yore, sentiment would indicate that coming up with the right value proposition required a few steak dinners and plenty of martinis. In reality the data tells us the truth, namely using the right value proposition can have a big impact on your product.

On this episode of the ProfitWell Report, Ed Leake, Founder at AdEvolver asks us to look at the influence on willingness to pay that value propositions can have. To answer Ed's question, we looked at the willingness to pay data of nearly ten thousand different subscription consumers.



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Value Propositions Influence Willingness to Pay

To get right to the point, the right value proposition absolutely influences willingness to pay, and a lot more than you’d intuitively think. 

We tested a fake CRM product amongst different groups of sales leadership with decision making authority on sales teams with less than 10 sales people. When asking these same buyers about the same product, but leading with different messaging we saw varying willingness to pay. Note how focusing on sales efficiency and organizing the chaos won out handedly against propositions like accelerate your growth and see inside your whole team.


Graph1-Different B2B value propositions resulted in differing WTP - Mid Low High Graph-Marketing


Remember this was the same product with the same description, the only piece we changed was the value proposition of the page, which resulted in increasing willingness to pay by 15-30%, which is no small amount at scale. 




B2C Value Propositions Are Just as Important

Interestingly enough, these trends are similar in the B2C market, as well. When testing the willingness to pay for a fake fitness app, consumers resonated with the concept of keeping their fitness consistent and achieving their goals while sentiments around losing weight and getting healthy scored poorly. Again though, the swings are pretty dramatic.


Graph2-Different B2C value propositions resulted in differing WTP - Mid Low High Graph (0;00;10;29)


Mindset matters when priming your buyers to make a purchasing decision, which is the very definition as to why product marketing exists as a function within your organization. You need to know what your buyers are thinking and ultimately need to make sure you get to a point of position, packaging, and pricing fit to ensure you align your entire funnel around that which will make conversion smooth and willingness to pay maximized.

All data indicates - value propositions have a big hand in that experience.

Well, that's all for now. If you have a question, ship me an email or video to and let's also thank Ed for sparking this research by clicking the here to share and give him a shoutout. We’ll see you next week.

By Patrick Campbell

Founder & CEO of ProfitWell, the software for helping subscription companies with their monetization and retention strategies, as well as providing free turnkey subscription financial metrics for over 20,000 companies. Prior to ProfitWell Patrick led Strategic Initiatives for Boston-based Gemvara and was an Economist at Google and the US Intelligence community.

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