Using a value ladder to scale your marketing and attract ideal clients is an important strategy used by many different industries. Essentially the value ladder brings new clients into your business with a low-level offer to upsell them down the road, thereby increasing their lifetime customer value. Industries do this every day, and you have likely seen at least a few value ladder offers today. Clothing brands send us coupons, dentists provide discounted teeth whitening for first-time clients, and personal trainers create low-cost introductory sessions. These businesses understand that while they may not generate a significant amount of money on their low-level offer, they get new clients in the door and simultaneously build trust and credibility.
Offering a mix of services and products from the high dollar, low volume to the low dollar, high volume is essential to generate consistent revenue, and diversify revenue streams. High dollar products and services emphasize customized features, quality, and high-touch interaction, whereas low-level offers are less service-oriented, readily available, and cost-effective to deliver. Low-level offers bring attention to your brand, expand your reach across a broader demographic, and convert leads into paying customers. Using value ladders to scale your marketing is useful for all types of businesses, including the luxury sector.
Many online marketers make the mistake of spending advertising dollars promoting free content and information. They think that free offers will generate leads, and in return, paying customers. Yet, this is often not the case. Free content tends to attract tire kickers seeking information with no intention of buying from you, whereas promoting low-level offers generates qualified leads and simultaneously brings in paying customers. Profits from your low-level sales can then be re-invested in your already paying customers. Have we convinced you to turn something you are giving away for free into a low-level offer?
Low-level items require that you sell more to make the equivalent amount of revenue you generate from one of your higher-priced items. However, the underlying benefits of low-cost offers are brand awareness, lead generation, and upselling opportunities. Sure, if your low-level item is a book, you probably spent hours writing it; however, whether you sell a hundred copies or thousands of copies, the work is behind you, and every sale of your low-price item increases your bottom line. That is why using value ladders to scale your marketing is so important.
Your low-priced items should be catchy and memorable, yet representative of your brand's image and purpose. Do not make the mistake of promoting a low-price offering that does not identify with your core values, as this confuses the marketplace and tarnishes your brand. These disconnects tend to happen when businesses are too quick to sell to new clients and fail to recognize how important it is to attract the right clientele. Your clients' experience with entry-level offers determines whether they will continue to buy from you and how likely they are to refer you to their friends and family.
Low-level products and services often have much higher conversion rates, allowing you to quickly scale these offers. It is much easier to sell a $9.99 introductory course than to get a first-time client to pay $999 to attend your 6-part webinar series. Making your product more accessible and the initial investment to try your services less intimidating will allow you to reach a broader audience.
As your client base increases, you will have more people talking about their experiences with your brand. Low-level offers and value ladders to scale your marketing energize your sales and help grow your referral network through word of mouth and client testimonials. Newer, less-established businesses significantly benefit from low-level offers. The low-priced offers provide a faster means to reach clients and a quicker route to establishing brand awareness, credibility, and loyalty. The number of years you have been in business will not matter if you have clients raving about your products or services.
Low-level products and services serve as catalysts to selling your most profitable items. Therefore, while buyers may be different, your message should be captivating across all levels. As clients recognize your product or service's benefits, they will continue to come back for more. Happy clients also mean referrals. Most companies already know this, and that's why referral programs are also an essential marketing tool.
Create low-level offers that are easy to replicate and cost-effective to mass-produce. Think economies of scale when coming up with your low-level products. Focus on delivering as much value as possible when creating your low-level offers. You do not want to devalue your brand by selling anything inferior to your core products. Low-level services include e-books, recorded webinars, guides, and templates that do not cost anything nor take up time to re-sell.
When marketing low-level items to new clients, for example, you will need to follow a formula that does not alienate your highly profitable clients. Established brands like Tiffany & Co, Louis Vuitton, and Vera Wang successfully sell to mainstream consumers while still maintaining their niche in the luxury market. Louis Vuitton and Tiffany & Co sell keychains, perfumes, and other goods for under $200 so that consumers who admire but cannot afford the brand can experience it.
Young and aspiring consumers buy low-level items from luxury brands hoping that someday they will be able to buy their first Louis Vuitton handbag or wear that diamond engagement ring from Tiffany & Co. Luxury brands benefit from the brand recognition they receive from expanding their customer niche. The expectation is that they will capitalize further from adopting these young and aspiring consumers early on. They are establishing long-term loyalty from customers who feel good owning just about anything from the brand they love.
Vera Wang has built a billion brand with multiple product lines sold through different channels. By partnering with David's Bridal, Vera Wang made her wedding dresses affordable and available to brides across America. Whether designing a custom dress for a fashionista in New York or a small-town girl in Iowa shopping at the neighboring mall, Vera Wang brings detailed artistry to each product line.
Low-level offers entice people to experience your product for the first time. They promote your brand and gain buy-in while serving as a stepping stone to selling higher-priced items. Let these low-low offers cultivate the type of clients you want long-term. Follow the lead of many luxury brands, who find opportunities to grow their business through the benefits of branding and by establishing loyalty with customers who buy their lower-priced goods.
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