Using The Value Ladder To Increase Sales
When running a business we all ask the same question daily - How do I increase sales?
One of the best ways to increase sales is to use the Value Ladder to build a relationship with your customers. The higher the customer values their relationship with you, the more money they're willing to spend.
On the bottom rung of the Value Ladder, we have an initial offer of value. This should be something you can offer customers for free; giving value before extracting value.
Let's say you're a bike retailer. Your initial offer of value could be to provide free branded drink bottles at a cycling event. This initiates a relationship with your target market.
The next step on the ladder is the lead magnet; a low-cost service option to build on the relationship. In our bike retailer example, this could be an educational event on bike maintenance. Tickets should be low cost with giveaways provided throughout the event.
Now that you’ve provided value and built a relationship, you can offer your 1st tier product or service. This is a medium-priced item, such as a child’s bike.
By providing a quality product or service and delighting the customer, you’ll build a stronger relationship which will lead to a 2nd tier offering. This could be a mountain bike for mum and dad.
Finally, you reach the highest rung of the ladder - the loyalty offer. This could be selling e-bikes to mum and dad with a full-service programme.
You're unlikely to be able to sell your highest-cost offering without first building a relationship with the customer. Start at the bottom of the ladder and build a stronger relationship each step of the way, offering only the products or services in which the customer finds value.
"Don't let them get lost in a value maze. Instead, build your value ladder." - Russell Brunson