Value Ladder Examples: How To Increase Your Sales

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As a business owner, you’ll want to maximize the spending of every single customer who purchases goods or services. Implementing a value ladder as part of your operations could help to convert that goal into a reality.

A fundamental driving force behind the importance of the value ladder comes in being able to predict and optimize client expenditure. 

Without asking them directly, there’s no way of knowing just how much money a customer has to spend. Even if you operate in an industry that permits you to ask such inquiries, many clients underestimate their spending capacity. 

Or, they’ll supply erroneous information.

A huge percentage of prospects will never convert into real customers, even when confronted with your entry price levels. 

Below, we'll look into value ladder examples and how you can use them to boost your online biz.

What is a value ladder?

One way to "ease" a consumer into your final offer is through the use of a value ladder (also known as a sales ladder). Value ladders tend to start with something modest and easy to sell — like free giveaways — to develop some early trust and get the prospect interested in your company.

Value Ladder Examples: How To Increase Your Sales

However, how does it assist you in converting your initial prospects into long-term fans of your business?

To get to your "bullseye" offer, you must make successively more valuable and more expensive offers to the people in front of you.

There is a strong resemblance between the customer journey and a value ladder since both are based on a similar premise: You can't get a prospect to buy when you first meet them, especially if you're selling expensive goods or services. With that being stated, nearly any organization can employ value ladders, but it’s especially effective in the B2B sales market.

Take a closer look at how and why sales value ladders function.

Benefits of the Russel Brunson value ladder

A sales value ladder does have benefits, but it should be used as part of a well-thought-out marketing strategy, not without planning and forethought.

It’s generally a good idea to first create a solid foundation for your business by demonstrating the value added by your products in the market (e.g., the quality of your products, the experience of service provided). Then, once you've established a strong brand presence, you can then focus on sales. Here are all its benefits:

Value ladders help build trust

The value ladder process starts with your product offering. It has to be a good one; you can't expect buyers to purchase products from your business when you haven't done your due diligence and research.

Once you've met the basic customer expectations, once you’ve built trust and loyalty, then raise prices and upsell.

In the end, it shouldn't be too difficult if it's done right; quality products speaking for themselves should help build trust through word of mouth.

Quick wins!

Yes, there are quick wins to be had through offering a free version of your product or service. As long as you're doing it properly, freebies can be incredibly effective for gaining market exposure in a short time frame.

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Free gifts are very useful in building trust for potential customers entering your funnel for the first time. They’ll view this as an incentive to buy from you once they become interested in a paid subscription or premium plan.

Boost customer retention

When you’ve got a tight funnel and your customers are leaving at an alarming rate (it could be because of poor customer service, or some other reason), then you can really benefit from value ladder pricing.

Value ladder pricing can also provide your business with an opportunity to stay in touch with your customers. By offering them discounted services, you can regain their trust and loyalty when it comes to future purchases.

You’ll be able to test new products and services without having to invest a lot of capital in experimenting.

Value ladders help you close bigger deals

If you’ve done everything right and you’ve built trust, then it only follows that you need to upsell your customers. Value ladders will allow your customers to partake in bigger ticket items.

Customers can use the value ladder pricing as a way of signaling their intent to buy. By asking them to make a small investment, they are also making the purchase decision easier, allowing you to close big deals and bring in higher revenues with less work.

Eases your customers into a sale

By offering a series of value ladder steps, you’ll be able to ease the buyer into a sale.

The final step marks the moment you aim for. The middle steps are just there to prepare them for the final stage, which is when they'll actually buy from you.

Why do businesses without a value ladder suffer

Before we dig deeper into the importance of value ladders, let’s analyze an example of a corporation that’s opted not to implement one. In the scenario, a business encounters three prospective consumers who all seek to acquire its solution.

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Customer A is prepared to part with $50. Customer B has $100 to spend, and Customer C can spend up to $250 with the firm. Customers should expect to pay between $60 and $100 for the things sold by this particular business. According to our calculations, if all three clients bought the solution, they would have spent a total of $160.

This is how I rationalized it. Customer A cannot afford to acquire the solution and so does not spend any money. Customer B can afford the solution and may choose to select a higher package and spend the full $100. However, it's likely that he'd simply go with a less expensive bundle if it met his requirements, even if it cost only $60.

Customer C will quickly discover that the highest cost product is priced below his spending potential. He’ll probably take the higher bundle and spend $100.

Ultimately, when faced with three prospects, this organization might likely earn a maximum of $160 out of a potential $400. That’s a big sum of money left on the table in this circumstance! Businesses in both B2B and B2C sectors can both benefit from implementing value ladders, as can many other organizations. 

The installation of a value ladder boosts sales potential and income and eliminates a situation like the one above.

How a value ladder works

Let’s put ourselves into the mind of the buyer. Let's pretend you got the following email:

“Hi [name],

 

As the owner of [business], I’m sure you appreciate how vital it is to know how to sell.

 

Which is why I’d love to provide you and your team with expert sales training.

 

All for the price of $2000 per month, my experienced coaches and I will push your team to the next level of sales talents. If that sounds appealing to you, let's set up a time to talk and get things started!

 

Hope to hear from you soon!

 

- Joe the Sales Guy”

 

Now let's get back to the real world.

Is it time to make a purchase with Joe yet?

In most cases, the answer is no, and there's a good reason for it. There is zero trust in that email.

This isn't Joe or his consulting services.

Joe could be the best sales coach there is, but before he ever can consider selling his full-priced coaching services, he has to create a strong connection so you know you can trust him and his coaches.

An ideal value ladder accomplishes exactly this.

Rather than rushing out of the gates trying to convince your prospects to buy a whole product, why not provide a free sales training video in exchange for them subscribing to your email list?

The email-for-sales training is a much easier sell for new prospects, and it offers you a chance to show you can provide value too.

And as you continue to make offers, they might rise in value – for both you and the customer — until you’ve finally made it to the final offer.

How to create a value ladder

You are now aware of just how significant a value ladder is for developing client value, improving retention, and boosting expenditure. For your ladder to be successful, you must pay close attention to its design and staging. Yet, it may take a significant bit of trial and error to find the ideal answer for your firm.

The first free (or low-cost) offer is not a sales meeting or a consultation, and that must be understood before you create your value ladder. Prospective clients may be immediately turned off by this, and it provides them with no genuine value.

Your initial $0 offer must be compelling, and should be something purchasers would ordinarily need to pay to get. When you apply this, any prospect who accepts the offer will immediately regard your brand as offering amazing value.

This creates trust and makes consumers more willing to buy the next paid tiers of your value ladder.

Step 1: get familiar with your market

You need to be able to confidently identify the need your clients have. Your value ladder will require you to offer solutions to them based on how they spend their time and money, so it’s essential that you know what they’re already spending money on. Otherwise, how will you know how much potential there is for growth in those areas?

For example, when offering value ladders for students, you may want to offer a lower package of access to some course materials rather than a full certificate or diploma program.

Step 2: determine your main offer

Next, you must have a good grasp of the main reason why clients would purchase your product. The main offer is not necessarily the most expensive package, but it is likely to be one of your primary offerings, with additional products featured as secondary offers.

Step 3: design a tripwire

Customers will be drawn in by your "tripwire" (also known as a "value proposition"). Many organizations prefer to fragment their primary goods and sell part of them as a tripwire to build interest in the main product.

Step 4: create a lead magnet

This step requires you to design a way to bring clients into your funnel – in this case, an incentive that will bring them into your sales funnel. A lead magnet can be anything from a free report, a video, webinar, or any other information which draws interest.

Step 5: add a way to maximize your profits

The back and front ends of your business should be equally important to you. Customers' lifetime value can be increased through the use of a profit maximizer.

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As a small and exclusive workshop, bespoke offer, or packaged package of your main services this concept is usually designed. Your premium consumers should be willing to pay top bucks for something that is both personalized and enticing. 

Ultimately, a profit maximizer gives you the chance to sell things to your key clients again and again. All the while developing loyal followers that will give you fantastic ratings and refer your business to others.

Value ladder examples

Now, with all that out of the way, you might still be wondering what a well-structured value ladder even looks like. This is why I thought it’d be a wonderful idea to show you an example of what a value ladder could look like for a firm like a digital marketing agency.

The first section of the value ladder should be the “no brainer” offer.

If we were a marketing firm, we could offer a prospect an audit that would reveal all of the issues preventing them from reaching their marketing objectives.

The prospect will have all the information they need to begin generating the leads they desire after the audit is complete. The second issue is: who will take on the task of resolving all of these issues?

The most obvious choice? It's you, the advertising firm. And it will be your first upsell. Your new client's processes would be in place in no time, allowing them to generate more leads.

Since our target offer is a long-term SEO plan in this example, we’re going to require some time to obtain our new client organic leads (SEO is known to take time to produce results) (SEO is known to take time to get results).

As a result, we'll do everything we can to keep our customers happy while they wait for us to start generating leads for them. That’s where a PPC campaign could come into play. Although not an ideal long-term solution to marketing, it will get our clients leads fast.

Once the leads pour in from a PPC campaign, our client will have more trust and be ready for the long-term strategy (if it went well) (assuming it went well). That’s where the bullseye offer would come in, and we’d then upsell the client to the long-term SEO plan.

The bottom line

A well-constructed value ladder will be a joy to develop and use, as it will make your prospecting operations much simpler! Without one, you're bound to lose a lot of potential clients if your website isn't up to scratch. 

Plan your value ladder carefully, but remember to stay flexible and open-minded so that your product can grow with the needs of your clients.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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