Before you create an online sales funnel, it is crucially important that you’ve mapped out your Value Ladder. For this exact reason, all my digital marketing strategy discover calls include me asking, “Do you have the value ladder that you taking your target market through?”
Soon you will discover why a value ladder is so important and how a value ladder marketing strategy is structured. Begin today to think about creating or improving upon your own value ladder because every business can use one to increase profits and the lifetime value of their customers.
What Is Value Ladder Marketing
The image below provides you with an excellent visual of what a value ladder can look like with an online sales funnel.
Start With Building A Value Ladder
Take a look at the value ladder diagram above. You’ll see that ‘Value’ is listed on the left and it increase upwards as the ‘Price’ (located at the bottom of the diagram) increases as a customer heads deeper into the value ladder. The more value that a business can provide the customer, the more they can ask for in exchange for price.
What tends to happen when business start to market their products or services online is that they attempt to start at the very top of the value ladder with their core product(s) or service(s).
Courtship: An Easy To Understand Value Ladder
In this day and age of Tinder, Bumble and a host of other dating apps; courtship might become a lost art. Perhaps for similar reason, entrepreneurs are failing with their online marketing. They jump online and begin throwing links to their products and service everywhere online as if the internet is only a billboard.
News Flash! The internet is made up of real people! People with credit cards and spending power. As the saying goes, “People do businesses with people or brands that they know, like and trust!”
A lady that I have never seem in my life strikes my attention while we’re waiting in line at the grocery store. Captivated by her presence, I walk up to her in all seriousness and ask her to marry me.
How do you think she would respond to me?
Maybe if she has a good sense of humour, she’ll just laugh it off. Chances are though, she’ll look at me like I was some creepo dude. Whatever her reaction would be, it wouldn’t be an agreement to get married. It’s pretty obvious… even common sense.
She does not know, like or trust me yet. And this is why men would court a lady for days, weeks and months before proposing a marriage. For a much better success rate, I would walk up to her and first introduce myself. Then I would compliment her or make her laugh with some of my charm. I’m beginning to add value through humour and charm.
After that I can then ask her for her phone number where I can call and add more value to her life. From there, I can then ask her out on a date continuing with adding fun, adventure and whatever other qualities & activities that she finds value in. After providing value where she now knows me, likes me and trust me, I can work my way up to a marriage proposal.
That process is no difference when marketing a business online. You must start with providing value and increasing the value over time before asking them to invest in the most valuable offer you have.
The Value Ladder Explained
Video Run-Time: 6 minutes & 23 seconds
Click here to get your free copy of the book Dotcom Secrets ($7.95 S&H) mentioned in the video
Key takeaways from the Value Ladder video
- The ideal situation for most business owner is to be able to get the most amount of money for the most amount of value they offer. The problem is that as business owners, we can’t just walk up to anyone and simply expect them to give us that amount of money when we’ve given them no value before. It would be a highly risky purchase from the point of view of the purchaser.
- Consumer like to test the waters with new businesses before they fully commit with them. This is why it is important for business owners to provide some free or introductory value upfront first. This can be as simple as answering commonly asked questions, providing demos or free giveaways. Anything that can introduce a new person into your would in a non-threatening manner. Humans are naturally inclined to want more if the initial experiences with a new person or brands is enjoyable and they gained some value.
- So long as a business can increase the value that is being offered, customers will continue to pay more for the value they are receiving. It’s a win-win situation where the customer is getting excellent value in exchange for the increase funds being handed over. With the value ladder, a customer can and often do stick around for as long as the business is offering value while not annoying the customer.
- The value ladder marketing strategy works for any business model; local business, eCommerce selling, network marketing, coaching/consulting and more.
- Be cool, be human and implement this before building a sales funnel and business will be good!
Value Ladder Example For A Dentist
From the example value ladder diagram above, it outlines a clear visual of how a sales funnel can be created. The only thing I would add to this diagram is the price associated with each upward step in the value ladder:
HOOK: Free/Low Cost Teeth Exam & Cleaning
OFFER: $49 continuity program every six months for teeth cleaning
INCREASE VALUE 1: Teeth Whitening for $99
INCREASE VALUE 2: Retainers for $299
INCREASE VALUE 3: Cavity Filling for $349
INCREASE VALUE 4: Cosmetic Surgery for $997+
There Is A Value Ladder Marketing Plan For Every Business
Sometimes I see business owners struggle in creating their value ladder because they only offer one service. As an example, some acupuncturist only provide that single service. However there are a number of ways to still build a winning value ladder. Simple think of what an acupuncturist can offer to get a new potential client to visit. In a future blog post, I will share some tips on how any business can build a value ladder marketing strategy that will instantly increase the lifetime value of their customers.
Until then, you can get all the information needed to start the process of building a value ladder and a high converting sales funnel by getting your free copy of Dotcom Secrets. Also, now that you are aware of the value ladders, post in the comment a recent value ladder that you have been taken through. As an example, I came across this online affiliate community. The allowed me to sign-up for free so long as I provided an email address. After signing up, they emailed me and offered a 7-day period where I could sign up to be a premium member for a fraction of the regular price. A small yet effective value ladder. Free to discounted member to premium services.
Would you like to brainstorm some Value Ladder ideas for your business? Then schedule a free, no obligation strategy call today by clicking here!
Share your experience of going through a value ladder below! If you have an questions or concerns, you can also post them below.