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The value ladder has immense power for any kind of business, no matter who your customer is. If you’re not using the value ladder, here’s why you need to take a different approach.
Who has the power in your business? Is it the ones in charge or perhaps the employees whose direct customer service (and whether its good or not) can impact a lead’s decision to buy? Although every player within a brand plays a role in the success of your brand, it’s the customers, more importantly, their buying capabilities that hold power. In this regard, your knowledge of the customers’ value and role within the value ladder should be one of the most essential practices of your brand.
When your customers enter your store or visit your website, you have no idea how much money (or “buying power”) they have, and how much, if any, they will spend. If your brand offers a premium service, say, for example, yoga clothes, you’re likely to provide products in a higher price range. This means that potential customers visiting your brand who don’t have extra money to spend probably won’t purchase anything. And. those who have a more considerable amount to spend will most likely buy in the higher area (but, of course, you’re more likely to be visited by those in the lower to moderate range.)
The value ladder is a business model that offers a product or service of value at every price range, starting at a free or very inexpensive price, and leading up in intervals until your maximum has been reached. In this regard, you offer every potential customer who enters your business or visits your website the lowest tier of the ladder first.
So, the power in this ladder is that everyone wants that free value – it doesn’t matter how much you ideally have to spend. Those who visit who don’t have a lot to spend are going to appreciate that value, see the benefit in your products, and more likely spend what they do have on your brand (on the next rung of the ladder) instead of with your competitors. Now, the real buying potential of all your customers and their income levels is maximized because each customer is impressed with the lower value levels that they will immediately climb that ladder. Even someone entering with hundreds of dollars to spent will more likely continue to climb right up that ladder instead of only buying the minimum or only one expensive product.
For many brands, we believe that if we sold one or two products, perhaps having sold to a high percentage of the traffic that visits us, that it translates to a job well done. In fact, however, we are entirely unaware of the lost opportunity of the spending power your customers didn’t use at your business because they either didn’t have enough to purchase or bought only one item.
It’s why many brands that offer the value ladder find innovative ways of providing the lowest rungs but pushing customers to continue to find value as they move up the ladder until they’ve reached their full potential.
Interested in learning more about how you can hone in on your customers and ensure they move up your value ladder? Reach out for a conversation with a member of our team today!