How Using Value Ladders Will Increase Sales, Revenue and Customer Engagement

Every business, either online or offline should always be looking to Increase Sales, revenue, and customer engagement.

Did you know that there are simple methods you can employ within your business that will help to grow your authority, increase sales, engagement and ultimate revenue generated?

In-fact, if used correctly, these simple methods or systems can revolutionise your business overnight.

You can do this by introducing value ladders into your business…

Maybe you don’t even know what a value ladder is!

…Or WHY you MUST have one within your business?

Do not worry, I am going to explain exactly what a value ladder is and how employing them in your business can instantly boost your business.

Think of this concept – You have various entry points into your business. These can be from a simple free offer to low priced offer and right up to what you consider your medium or higher value offer.

But the thing is, you can always be offering more to your customers, you will also find there are also customers who are seeking more or extra from you and you may not be currently offering this within your business.

Even if you are offering a lot within your business, you MUST look at what extra you may be able to offer.

Because at the end of the day, if you are not seeking new ways to make more offers, then your business is either stale, stagnant or in decline.

So what is the 30,000 foot view of a Value Ladder?

In simple terms, a value ladder is a way to structure your business in order to appeal to your target audience at different phases of their growth. This is by offering something with more value to your customers or clients, and as your personal commitment increases, the value and price also increases and people step upwards on your value ladder.

Meaning the more value you offer in terms of time or information, then the more closely connected they are with you and as such they will be stepping up your value ladder.

So in the digital marketing world this means you offer more of your personal time or personal experience to one person in exchange for offering them more knowledge and your consulting skills.

By having a value ladder in place, it proves your authority in the eyes of your customers. It also gives you the edge over others as you have this structure in place as it ensures you have products or services available to continue to serve your clients as they grow with you.

How do I structure a Value Ladder?

Before we start mentioning the structure, I want to talk about delivering value to your customers.

Many people think by offering items at a cheaper price is offering value…

This is not the case!

What if we flipped this and offered MORE and at a premium?

This is also offering value to those who most need it.

Likewise, by doing so, you will further engage those people who are looking more from you.

So what you must do, is look at your business, see where you can offer more and at what levels you can pitch your pricing. My recommendation is look at the most outrageous thing you could possibly offer and then pitch the rest of your business pricing around this.

For example: I will fly to your offices and spend one week in your offices and revolutionise your online business, processes, systems and educate you and your staff on how to effectively market your business online.

This is INSANE Value!

…and a pretty awesome deal – but it will cost you $25,000

Now this is a current pricing step within my business. By having this step, I can now look at other steps within MY personal businesses value ladder.

I can also look at offering one on one coaching sessions, group coaching sessions, webinars and digital products that can all fill a need and offer value to my customers in different ways, and at different levels.

If you employ the use of Value Ladders (like I have) within your business, you can literally increase the revenue within your business overnight.

A Value Ladder is Designed To Appeal To A Specific Audience

By offering steps of value within your value ladder, you will find it is not going to appeal to everybody, but it will also appeal to a select few, who are your target audience.

With the online world this can be in person (one on one), in a group setting, a mastermind (in person or online) or even access to pre-recorded content.

You need to remember, If someone is wanting personal access to you either in person, via a one on one live call, or even via email access, then this involves YOU and your time. Meaning you will be personally replying to an email or message or even hopping onto a call with the client on a weekly basis to work through whatever it is they are needing help with.

By doing this, they are getting a personal (or custom) service from you, meaning you are offering more value in terms of your time, knowledge, expertise and skills.

Remember: When something consumes more of your time, it has to have a higher price, as it involves a bigger commitment from you.

Building Your Value Ladder

The way I recommend is to start at the top rung of your ladder, then work downwards with value delivered and pricing.

What you need to do is look at offering higher priced offers that deliver more value, knowledge or features for their business. This can be in the form of email access, coaching, one on one calls, live webinars, books, personal workshops, extra training and even access to your personal phone number.

Look at working downwards from your top offer and down to the various entry points of your business. By doing so will help you ensure that your complete funnel is congruent and leads naturally towards the next rung within your value ladder.

As an online business you will have free (lead magnets) and lower priced products. These are typically the entry point to your funnels and the bottom rung of your value ladder.

In the online world your value can be in the form of coaching and consulting.

You will find online there are always customers who are looking for more from you, or businesses just like yours, if you are not currently offering extra offers. This is especially true in the digital and online world, people want (NEED) more. By offering extra time, knowledge, skill people will value and respect your skills and knowledge and be wiling to pay you more to access more of you, your knowledge and time.

However, your time is limited – As much as you may love to, you cannot give everybody your time. We all only have the same 24 hours in a day. Take away the personal stuff, we are only left with a few hours of available time for work related stuff.

This means whilst you are working, you want to ensure you get the most productive or profitable tasks completed.

The same is true with your clients. You want to ensure your time and energies are focused on the people who have paid a premium to gain access to you.

You may be a little like me, and actually WANT to help people, but to effectively help people you may also have to focus only on the people who are in the upper levels of your value ladder.

However, you also need to look at the entry points to your business, how do you raise awareness, do you offer lead magnets in return for the prospects information?

You can then upsell them with additional offers, just like McDonalds and all other bigger companies do.

However you can do even more…

You can also have group coaching, personal access via email, one on one time with you on a call or in person and intensive seminars in person.

Each of these are offering even more value from you

They also cost you in time invested…

So you are going to be wanting to restrict tis ONLY to the people who are willing to invest in themselves and also reward you for your time, expertise and value you deliver.

Begin Structuring Your OWN Value Ladder

Take this post and look at what it is you can offer within your business. Think of the biggest amount of value you can offer to others and then set a price for this and your time, knowledge, expertise and skill set.

Once you have this set out, you can then look at the next level below.

How can you deliver maximum value to the people who may not be ready for you to fly to their office.

  • Is it one one one via a weekly call?
  • Maybe personal email access to you?
  • Or access to your innier circle?

Think of what it is you can offer, and at what price, then structure this within your business.

After that step downards and see what it is you can deliver value with.

  • Can you run group coaching?
  • Create a membership site
  • Create a course?

Then you must also look at the entry points into your business

What lead magnets can you offer?

By now I have hopefully given you a framework you can use to start building our your very own value ladder and also set the pricing at a level where you can increase your income, sales, engagement and begin growing your business in a way that is setup to deliver VALUE to your end customers.

About The Author

chris

Chris Cole is passionate about online technology, video and audio. He is from Northern Ireland and has been working online since 2009. He likes to write about his marketing journey online and is also a lover of all thing Video and Podcast related. Follow Chris' journey and while you're here - Watch out for the new Broadcast Geeks Podcast that is coming soon. If you like this site, then why not come and join Chris over inside the Broadcast Geeks Facebook Group (Click Here) https://www.facebook.com/groups/broadcastgeeks

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