Interviews and news

What Is A Value Ladder? (Strategy and examples)

Apr 25, 2023

Learn about what is a value ladder, how to create one and how it could aid you in increasing your income.

Are you looking for ways to boost your earnings and increase income? If so, you're not all on your own. Creator educators are always searching for innovative ways to boost their income, and one of the most effective strategies is by using an 'value ladder.

This blog post, I'll discuss the definition of a value ladder as well as how you can make one and how it can aid in the growth of your company.

Skip ahead:

What is a Value Ladder?

A value ladder is the name of a marketing technique that's created to guide clients on a trip starting with a basic entry-level product up to an expensive premium item. The aim is to build the appearance of a set of products or services that become higher in value with each step building on the previous one.

How do you create a Value Ladder

In order to build an effective value ladder, you have to begin with a cheap, entry-level offer that provides value to your customers. This could be a free book, an inexpensive training course, or an inexpensive offer that you could provide. When you've put your first deal in place, then it is time to develop your next level on the ladder, which will be a product with a higher price or service that builds on the success of your previous offering.

In the example above, if the first offer you make includes a no-cost e-book, your next step could be a course at a lower cost which expands upon the content within the book. From there, you could make a coaching course that is more costly or a membership website, or a mastermind group. It is important to develop a set of deals which are ever more valuable and that provide your customers with more and more benefits.

Benefits of the Value Ladder

The advantages of using an incline ladder are endless. It can help you:

  • Create a range of items or services that will appeal to different sections of your target audience. A few people might appreciate your affordable product, whereas others may prefer to pay for more expensive services.
  • increase your revenue without constantly increase your profits without continuously acquiring new clients. Offering more goods or services to current customers, you will grow your business while providing more value to your audience.
  • Build a customer base that is loyal. If you can provide value every stage of your business it is possible to build an audience of clients who trust your company and are more likely to recommend your business to their friends and colleagues.

Using a Value Ladder for Your Company

If you've a better understanding of the concept behind a value ladder and how it works, let's talk about how you can utilize it in your business. The first thing to do is find your customer and the problems you're addressing for them. It is essential to provide the information necessary to provide the solution for their problems and not just information to get information.

Once you have identified your target market, you must to design a value ladder that caters for their various levels of willingness pay and the severity of the issues they face. This means you need to offer products at different cost points, with different levels of features and benefits. By doing so, you can price discriminate and draw customers willing to pay a premium for better results.

  A Simple Example of a Value ladder in the course of  

Let's suppose you're launching a new course for real estate agents who want to conclude and negotiate more deals faster so they can make more profit. The target audience are salespeople and they are keen to use your methods to make more money. Your problem you're trying to solve is the fact that they are not good when it comes to closing deals. They are not concluding enough, not earning enough profit or making money, but they leave it on the table.

In order to create the value ladder of the product, you can offer different products at varying price points, such as:

  • Playbook with a low price point of just $97
  • Asynchronous courses at a medium price point
  • A group course with an experienced instructor at a higher price point

By offering different products priced at different price points it is possible to cater to various customers, and also attract those who are willing to be willing to pay a premium for a custom solution. If you're trying to increase your revenue you should think about creating a ladder with different options priced at different levels in order to meet your clients requirements.

  The North Star Principle  

The first step of implementing an effective value ladder is to establish the North Star Principle. It is the principal that runs your business and guides your decision-making. It defines your core principles, values and objectives. The North Star Principle needs to be something that your team believes in and is committed to.

  Define your core Tenets  

Your core principles represent the values that govern your business. They must be in line with the North Star principle and provide a foundation for your value ladder. A few examples of the core principles could include belief in the power of sales or the significance of managing time.

  Delivery Vehicles  

The next thing to do is identify the delivery vehicles for the North Star Principle. These are the different offerings or services that you will offer at different price points. The product or service you offer must be created to assist your customers achieve a specific goal or solve a specific problem.

The delivery vehicles are the points on the ladder of value. Your goal is to help your clients climb up the ladder by providing them with more value at each step.

As an example, if your North Star Principle is helping people reach their fitness goals, your delivery vehicles might comprise:

  • An unofficial guide providing guidelines for eating healthy as well as exercise
  • An asynchronous course on how to design a workout plan
  • Training sessions for groups of individuals
  • One-on-one coaching

The key is to offer greater value with each stage of the ladder. As customers climb through the steps, they will become more invested in the brand's name and more inclined to buy more expensive items from you.

  Implementation  

After you've defined the North Star Principle in addition to having identified your delivery vehicles It's now time to start implementing the value ladder plan. It is best to do it is by using a single platform. It is a great platform which offers a wide range of options for delivery vehicle.

Gamification is a crucial element of a value ladder approach. Your goal is to assist your customers understand the process of checking off each level when they reach it. Consider it as an escalator every step is an individual product or service.

When you are implementing your value ladder, keep your mind in the present that you have to add more value at each level. You can't offer identical lessons or materials at each level, or customers won't be motivated to continue climbing the ladder.

With a well-planned marketing strategy in place the value ladder could be an effective tool for driving revenue and growth for your business.

If you're interested to learn more marketing trends and strategies to grow your company, register to watch this free on-demand Webinar series.