Continuous growth in the value of a product, service or other goods is a goal every long-term business strives to achieve. Businesses can grow product value via value ladders to cater to every customer and increase sales value with each transaction. While it is important to sell, it is absolutely essential to build and maintain trust in your ecosystem. Developing a value ladder can help.
Defining a Value Ladder
A value ladder caters to every unique customer at their price point to help grow the value of a product, service or offering. The process begins at a low value for low price. It starts with free goods or services in exchange for an email address or contact information. From there, the transactions increase in value from the business and customer.
At various levels, a business can add value to every transaction according the needs of the customer. This will guide the customer to solutions provided by featured goods or services; creating a synonymous relationship between the brand or business with the customer.
Base of Value Ladder
The greatest value a business can offer is at the highest price the customer is willing to pay. The base of the ladder should consist of free content to the customer in order to generate awareness. This content allows a brand or business to conservatively provide goods at no cost while also receiving some information about the customer. For example, requiring an entry such as contact information in order to become eligible for complimentary goods or service.
Through this gathered data, a business has direct access to share content to a prospective customer via newsletters and exclusive offerings. At the base, growing product value starts with providing value, growing awareness and building a client base. Sales funnels are great tools to implement a successful value ladder.
Moving up the Ladder
To provide the best offering at the best value, every step toward the top needs to be bigger and better than the previous. The price customers pay along the ladder does not always reflect the value. The more a customer is paying, the stronger the value needs to be. Consider their needs and how they can be met. Reflect on product variation or service bundles to address opportunity.
Drawing a ladder can help determine how and where to categorize goods or services. It is a resource that can highlight where offerings can enhance for the customer. It’s a good idea to map a fresh value ladder once or twice a year to identify areas of growth and spot challenges ahead of time.
Achieving Value Growth
The time it takes to reach the top will vary per customer and business model. Often times, the bigger the value, the more time it takes to build trust. Once at the top, the highest offering is available and not only is the customer able to pay, but they have intention. After moving alongside the company at every step, the customer believes in the product’s value and the business achieves growth.
Don’t lose prospective clients along the way. Use your offerings to provide solutions for your customers every step of the way. Contact Unstoppable Marketing Solutions to discuss how to build your value ladder today. Deliver more to your clients and make more money in the process.