In this article, I’ll discuss the concept of a “Value Ladder”. Why it’s important every business take the time to build out their value ladder and how this is more valuable than a business plan, or any other strategy you can create.
The Value Ladder Overview
First watch this whole video…but don’t get distracted by the recommended videos, keep reading below.
Value Ladder Simplified
When I’m setting up my own value ladder, or taking a client through the process of building out their value ladder, I am thinking one thing:
“What is the ideal buyers journey for this …?”
We are dealing with people here, not robots or electronic things. So we need to be thinking how people think when they are trying to make a decision.
While we use the value ladder for online marketing, this works just as good for brick and mortar business or businesses where you might be doing a lot of face-to-face interactions.
Here is a diagram that might help visual this as I go through an example. I also have some examples here.
Image Credit: Take from, Dotcom Secrets book, chapter 2, “The Value Ladder”.
Ideally, the first step on your ladder should be “bait” or some free offer that gets people to let their guard down and give you a chance,
Because something like 90%+ people start their search for a solution online, usually with a Google search, this is usually where you want them to first find your initial free offer, the bait.
The bait is designed to get your business, your offering in front of this new prospect, so that you can start to move them up your value ladder.
Example: AC Company
Let’s say you have a AC repair and install business. Your value ladder has several offerings.
- Tune Ups
And there could be more, but that is about the extent of what I know 😉
Maybe someone does a search for something like, “how to save money on my AC bill”. (something those of us living in Arizona always want to know in June, July, and August)
What I should first find is a simple report, or a checklist, “The 10 things you should do to ensure your unit is running efficiently”.
That report/checklist requires an email address to download, but then they can print it off.
On that report you can have a coupon, “use this to get 20% off an AC inspection”.
So the whole time someone is going through this checklist, they are seeing this offer for a inspection by a pro.
And since you have their email, you can send them an email with the same or a similar offer. “What items where you unable to complete on your checklist? Would you like one of our certified techs to come out and do an inspection? Be sure to use your 20% off coupon!”.
You see how you are moving them up the ladder…?
Once the inspection is done, you may need to sell a tune up, or there may need to be a repair.
From there you offer to do a semi annual inspection and put them on a preventative maintenance plan.
When they do need a new unit, you’re going to know before they do and you’ll get the install job.
The Value Ladder is Your System
Sure not every lead or opportunity is going to come in at the same point in the customer journey. But that is why you should have several different funnels with different offers, that ultimately ascend the same value ladder.
Once you know what you’re selling and understand that process from the customers perspective, you’ll be better prepared to take them through the buying process and have a ton more success.
Too often, business people don’t really have a system, and are just trying to sell their main thing, but the main thing may not be for everybody, yet.
So having a system, a value ladder, that allows more customers to start their journey with you, means more prospects and opportunities for you to make more money.
The Wrap Up
This concept of the value ladder is by far the most important business plan you can have.
I recommend you get the FREE book mentioned in the video, Dotcom Secrets and start reading chapter 2.
If you’d like some help developing your value ladder, please contact me, and I will coach you through this process and help you put this strategy into action.
Other things mentioned in the video:
If you have any questions, feel free to use the chat or comment below!