Imagine building a business where you miss out on 90% of every sale, see customers only once, and never have more products or services to offer.
Imagine a scenario where you only have 1 shot to sell only 1 product to 1 customer at a time with no new, old, or returning customers.
Imagine a scenario where your customer’s spend not $1000 with you but only $100.
That’s how most businesses operate and why most of them go bankrupt in less than two years.
They don’t have a value ladder. They don’t have a natural upward progression of their value (and corresponding sales) to their customers.
Russel Brunson tells a story about his first time at a Dentist.
He was redeeming a $37 teeth cleaning coupon. “Do you smoke or drink coffee? Looks like you have early yellowing of your teeth”
“I don’t smoke or even drink coffee. Why are my teeth yellow?”
“Well I can make custom teeth whitening trays. It’ll take 2 weeks but if you follow the steps they’ll be pearly white in no time”
“Did you have braces as a kid”
“Of course. How can you tell?”
“Your bottom two teeth are shifting. Its pretty common with people who have had braces. I can build a custom fitting retainer that will keep your teeth in place.”
The Dentist was using a value ladder. Get customers in, find better ways to serve them, present the solution, move forward.
Here’s a value ladder for a chiropractor.
Here’s one for your nearby bar/restaurant
Here’s one for Apple and BMW
If you don’t have a value ladder you are missing out on a lot. Not just better serving your customers to the best of your ability but…
- 90 percent of the customer life time value
- More sales, strong customer relationships, customer loyalty, and excitement towards your products and services
- Providing value to each customer that he or she can afford
- Remain profitable while finding customers that want your high end products and services
This last one is really important and why the small businesses end up failing. They find their target customer and try selling the perfect product – one that best serves their customers and keep the businesses open. But the target customer needs to be eased into this product. They’ll start small and slowly upgrade. Just like most people started with an iPhone then move into Macbooks. Without the value ladder, there’s no ‘ease’ products, the customer doesn’t buy, and the doors shutter.
By having a value ladder, the dentist turned a $37 dollar sale into a $3,700 sale and provided real customer value for a life time.
What if you don’t have a value ladder?
Lets say you sell $2000 suits and can’t figure out how to create a value ladder around your businesses.
It seems impossible because all you sell is suits, but from the customers point of view you are more than suits.
You are the fashion expert that allows them to get a job, look great, and better themselves through the clothes you sell.
Now your value ladder starts to look a bit more possible. And remember value ladders are about providing value (not just selling more stuff)
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