The Value Ladder is a little-known secret to building productive, dependable B2B sales funnels.
What is a Value Ladder?
Basically, it’s the path your ideal customers follow as they go from new, entry-level prospects to high-end clients.
Customers start at the bottom of your ladder, and as they ascend towards the top, they receive increasing levels of value.
In return, they pay higher prices or fees.
Here’s a simple illustration from Russell Brunson’s book DotComSecrets.
The strategy behind the Value Ladder is easy to understand.
The top of the ladder is where you want to take your very best clients — where you can serve them at the highest level and provide the greatest value.
Not every customer will go to the top the ladder, of course, but a certain percentage will.
Some customers will decide to stabilize on a certain rung of the ladder.
The idea is that as customers receive value, they are inclined to want more, which increases the chances they will take the next step up the ladder.
To illustrate, in Chapter 2 of his book, Russell Brunson uses the example of a Value Ladder for a dentist:
How the Value Ladder Applies to the B2B Market
In a perfect world, every new prospect would immediately decide to purchase your best, most expensive product, service or solution.
But it doesn’t work that way in reality, because you haven’t provided enough value yet.
So a Value Ladder gives them a clear path to follow — a logical progression of increasing levels of value in exchange for greater levels of commitment and investment.
Whenever I help clients through this process, three things become apparent:
1. Price is Defined — Value is Not
Everyone knows the price points on the ladder, but things get fuzzy when it comes to the actual value the customer receives.
For example, if a customer spends $50k, what is the economic benefit they gain in return?
The top marketers I know shoot for a “Price-to-Value” ratio of at least 10:1.
Understanding — and delivering — maximum value at each level is key to moving customers up the ladder.
2. Steps Too Steep
A ladder with giant steps is difficult if not impossible to climb.
Similarly, when a customer believes the next step requires a commitment that’s too high versus the potential gain, they won’t advance.
This translates into prospects and opportunities getting “stuck” in the funnel.
The key is building out a full value ladder with a gradual sequence of progressive offerings that make it easy for customers to move up to the next step.
3. Top Rung is Undervalued
Suppose a top-level client is worth $100k in revenue.
With a little thought, you can probably figure out ways to bundle your best products, services and support and offer packages worth $200k, $300k or more.
Certain customers will always pay a premium to get more value, so there’s really no end to your value ladder.
The only limit is your creativity and imagination.
How the Value Ladder Impacts the Sales Funnel
Without having a complete Value Ladder, it’s nearly impossible to construct an effective sales funnel.
A sales funnel is the process that guides customers up the steps of your Value Ladder.
The rungs in the Value Ladder are the actual stages in your sales funnel.
So once you have your Value Ladder complete, you’ll be able to start building — or rebuilding — a reliable sales funnel.
If it sounds simple and logical, it’s because it is. That’s the power of the model.
A Value Ladder is an excellent way to make sure you have attractive ways for your ideal clients to ascend, no matter what their maturity level.
In fact, the Value Ladder is a core element of every sales funnel I help clients build — including the Cold Email Funnel.
If you want to start off the New Year with the confidence that comes from a full pipeline, find out more by reading this time-sensitive message.
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