Tweet

How to Build a "Value Sales Ladder" Customers Will Buy Into

Written by: Bill Tamminga

Article Overview: The Value Sales Ladder is a visual representation of a company's entire menu of product or service offerings. It demonstrates how customers are brought into the sales process, where they stand at any given moment, and how the company increases clients' commitment over time.

How to Build a "Value Sales Ladder" Customers Will Buy Into

The Value Sales Ladder is a visual representation of a company's entire menu of product or service offerings. It demonstrates how customers are brought into the sales process, where they stand at any given moment, and how the company increases clients' commitment over time. For the purposes of this article, I will use a chiropractor as an example.

Step 1. The bottom rung of the ladder is the company's free offering(s). It can come in the form of a coupon, rebate, or special offer. The key point to remember at this level is that nothing is actually free. Potential clients are attracted to the business because of the offer, but they must give the company something in return: information. The given information can be as minimal as a name and e-mail address or as thorough as a full-length application. The chiropractor in our example might give out a free, monthly, health-related newsletter or a free initial consultation in exchange for a small amount of personal information including what their chiropractic needs are.

Step 2. The next rung on the sales ladder includes a variety of low cost offerings used to entice the customer to pay a small amount of money in return for something of value - a low-cost trial offer, a temporary membership, a book or manual - anything that will enhance the prospect's life in some way and get the prospect more familiar with the company. This rung involves very little risk for the client. At this level, the chiropractor might send an e-mail to his potential clients for two sessions at a discounted price.

Step 3. Going one step further is a larger product or service offering that requires a greater investment. This can be a lesser form of the company's top-line service, but something that still requires a significant commitment from your client. The chiropractor might offer a limited time 60-day trial at to anyone who signed up for the discounted sessions.

Step 4. The final rung on the sales ladder is the company's full-service offering. The chiropractor in our example could be looking for clients who are willing and able to sign up for six-months worth of sessions. At this point in the sales process the chiropractor has weeded out prospects that have no interest in his service, do not have the means or desire to hire the chiropractor, are not receptive to consultations, and/or are not willing to be an advocate of the chiropractor's service. The chiropractor is now spending a majority of his time with high quality clients who like him and what he has to offer. Isn't that what we all want? Of course it is.

Use the sales ladder as a way to introduce clients to your company and offer them ways to get involved at different price points. Some of your prospects will jump straight to your top-level offering, while others will fall off the wagon almost immediately. But the majority will appreciate your hard work and their ability to move through the process at a pace that is comfortable to them.

Related Articles
  Change Management Led Zeppelin Style
  Too Many Ladders? by Robin J Elliott
  The Law of the Ladder – How Customers Make Purchasing Decisions
  Increase Your Advocates
  Oops!

Article Tags: amount of money, chiropractor, company increases, e mail address, free initial consultation, full length, health, key point, ladder, limited time, risk, service offerings, sessions, special offer, step 3, visual representation



Related Forum Posts
Re: need pricing help please - here's my opinion that was derived from the person I heard it from (Russell Brunson) I view internet Marketing products as a Ladder. At the bottom of the Ladder is ebooks and at the top is One on One Coaching. so the ladder would look like this starting from the Top ($$$) to Bottom($) One-to-One Coaching ($$$$$$) Workshops ($$$$$) Teleseminars ($$$$) Video($$$) Audio ($$) ebooks ($) I agree with this methodology mainly because of the convenience factor and value from the customers point of view.
Re: need pricing help please - [quote="jvprosperity":t4htv1h6]here's my opinion that was derived from the person I heard it from (Russell Brunson) I view internet Marketing products as a Ladder. At the bottom of the Ladder is ebooks and at the top is One on One Coaching. so the ladder would look like this starting from the Top ($$$) to Bottom($) One-to-One Coaching ($$$$$$) Workshops ($$$$$) Teleseminars ($$$$) Video($$$) Audio ($$) ebooks ($) I agree with this methodology mainly because of the convenience factor and value from the customers point of view.[/quote:t4htv1h6] I also agree with this methodology, but sometimes some ebooks sell more in 2 digits. My 26 pages report sell for $9.77
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Two Useful Books To Help You Focus On The CLIENT - Hi David, To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience". Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

What is Discretionary Cash Flow

Avoid Burnout: Do the Limbo Regularly

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.