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Value Ladder

What Is A Value Ladder?

A value ladder is a register of suggestions that develop in price and value that engage people on their path to become a customer. 

From primary awareness to their ultimate decision to buy from you and upgrade to higher price products or services. It’s an efficient way for you to create trust and maximize every customer’s existence value.

the value ladder has 2 columns: value and price

Look at the image above, you’ll see on the left-hand we have value and the price on the bottom. Which means when customers move up the value ladder, you will be providing more value, also charging them more money.

Why Value Ladder Important?

Your value ladder is your business plan. It shows how to acquire your customers, make money as the business owner, and the result you will help customers achieve.

Watch the video below to see Russell Brunson – CEO of Clickfunnels, explain why businesses must have a value ladder.

When someone purchases from you, they’re exponentially much likelier to buy some other product from you again. Even if it is your highest and most expensive ticket offer.

A Value Ladder expands the lifetime value of a customer because you’re fusing diverse contributions into your lineup; you have the potential to lengthen that lifetime benefit. An original or low-price offer should be a digital output that can be considered profitable and cause an evergreen influenced income stream for you. 

Think about it!

If your customer receives value, they will naturally want more and moving up to the next step. It’s a human tendency that works on all of us.

How to Create a Value Ladder?

Create a value ladder is necessary for most businesses to help them serve customers better and increase revenue. Go through 2 simple steps to create your first value ladder

  • Identify who you want to serve
  • Mapping your value ladder

1. Identify Who You Want To serve

  1. Define your customer avatar
  2. What is their goal?
  3. What is the result you can provide?
  4. How can you add more value to them?
create valuae Value ladder customer goal

Many businesses figure out the problem of the market then create product or service to help them solve. But if they stop at this step, they don’t maximize customer value.

The mission of an entrepreneur is to solve problems of the market completely as possible through different offers.

2. Mapping Value ladder and create offers

After defining the result that your customers will be coming to you to achieve. We start to mapping value ladder like a road of solutions.

The offer that you provide each step of value ladder is different and will be helping to achieve that core goal.

mapping value ladder and create offers

Value Ladder Vs Sales Funnel

Because we have different offers on each tier of the value ladder, so we design different types of sales funnel to sell each type of offer.

The value ladder moves up from low-priced products to high priced products. In the sales funnel strategy, we discuss 4 types of sales funnel: Lead Funnel, Buyer Funnel, High-tickets Funnel, and other funnels.

You can see how to use it in the value ladder below.

value ladder and sales funnel
Because the price of each step of the value ladder is different, so you need to use different types of sales funnel in each step.

Look at the image below to understand the bridge between a value ladder and a sales funnel. The funnel in each step of the value ladder is a “mini-funnel” of the big sales funnel.

The value ladder vs sales funnel

Create a value ladder to help you figure out what products and services you need to add so that your target audiences move from bait to your high-end product or service.

The cloud above the sales funnel is Traffic (People who visit your funnel). From there you will want to attract them by giving free stuff or low-price product. After your potential customers get it, they will receive the value from you.

Next, move deeper into the funnel and introduce the next product or service on your value ladder. Not everyone gets your free stuff, or “bait” will buy your front-end product. But a percentage of them will.

The process keeps going until they reach your back-end offer, helps you increase the average cart value per customer.

This is a difference between people who have sales funnel and sell the product only:

  • People who sell products and don’t have sales processes use ads to promote your products or services. If the cost for ads increases (it always happen), they get less money, break-even, and finally losses.
  • If you have a sales process (sales funnel), you only use ads to attract people to your bait to get their information. Then introduce them to other products or services, almost free using email marketing, chatbot, SMS, etc.
the difference of people who sell product and have a value ladder with powerful sales process

Once you have a sales process, you should focus ads on your front end offer. Then you can promote your core, middle, and back-end offers by using follow-up funnel. You also increase your profits and outbid your competitors.

When your ads stop working for your core offers, you can start to build new front-end offers to get new people into your sales process and ascend them to the offers you’ve created.

Value Ladder Examples

Marketing Service Value ladder example
Example for Marketing Service
Value Ladder example for Author, Speaker and Coach
Example for author, speaker and coach
Dentist Value Ladder example
Example For Dentist: Start with teeth cleaning for FREE

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