A value ladder helps your customer ease into your final sale with a series of offers. The offers can start as free incentives. The value ladder then goes up to offers with gradually increasing costs.
Having a value ladder is advantageous in your sales funnel for potential customers who may not want to fully commit yet. It helps build trust and loyalty. It also makes small wins for both you and your customers.
Without a value ladder, a potential customer may leave the sales funnel without buying anything. You will also lose the opportunity to nurture potential customers into buying later on in the future.
In this article, we will explore the basic principles of the sales funnel value ladder. By the time you have finished reading this article, we hope you will have more ideas for creating your value ladder.
The More Personalized the Offer, the Higher the Value
If you’re offering courses, having a one-on-one study session with you has the greatest value.
If you’re offering products, a customized kit of all your products at less of its actual price has the greatest value.
These personalized offers also have the highest success rate.
So in this exercise, ask yourself: what personalized offers can you give?
The good news for those whose product or service is their expertise, these personalized, high-value offers are also the simplest to execute.
For example, a coaching session consists of a date and your notes. In one session, you can answer your attendees’ questions and help them better in understanding what you teach. Comparably, creating a course would take more time and effort despite having a lower price.
The Higher the Value, the Greater the Price
A value ladder can offer different ways for a potential customer to engage with your business. The higher the value of your offer, the greater must be its price.
In the lowest rung of the value ladder, what you are exchanging for free is their time. If potential customers are not giving you time, then it isn’t compelling enough to go up the ladder.
For example, a free trial is a good offer at the bottom of the sales ladder for those whose product is a software program. For those selling services, free case studies and how-to e-books is educational and shows off the expertise of the people behind the services.
Create a Value Ladder
When creating a value ladder, always start from above and then work down. Think of the best offer you could give related to your unique value proposition. There are two things at work when creating high-value offers: scarcity and bonuses.
The scarcer the offer, the higher its value. The more an offer has bonuses, the more people believe they are getting more than its actual price.
For those selling products, this can be a premium item in which its high-quality stems from the scarcity of its components or craftsmanship. It can include bonus items that aren’t included in regular purchases.
For those selling services, it can be you as the expert whose time is valuable and more reserved for those who are willing to pay more. Its bonuses can include giving them the privilege of calling you in the middle of the night if they have questions (Yes, some experts do this).
What will You Put in Your Sales Funnel Value Ladder?
A value ladder in your sales funnel allows potential customers to commit minimally when they are not yet ready for your actual sale. It allows both business and the customers to get a win while also building a relationship of trust. The personalized offers often have high value, especially when they are scarce with added bonuses.
If you want more personalized advice that’s unique to your business, you can start with a free consultation with us.