No - it's not about discount section in Walmart. Value Ladder is simply a set of your offerings systemized from the lowest value to the highest one – be it a price of the item or complexity (cost) of service.
Why is it important to have one?
Because this is the easiest way to attract new customers and keep selling to existing ones. Every successful business has one. Sometimes we are just not even aware of it. There are some obvious examples; like dentist where you show up for a cleaning and before you know it, you have a few thousand more on your credit card (they also mastered a "scare city" technique). McDonald does it more subtly - a perfect combination of value ladder blended with flow less upselling (would you like fries with that?). Value ladder is everywhere - it is in a layout of your local Target where you grab a 99 cent sale right in a front, and then one hour later you find yourself contemplating a new TV in a back section of the store. You hairdresser has one, your coffee shop has it, and your car wash is trying to trick you too.
So whatever you sell or whatever service you provide - you need to build one for yourself.
It is also important in the context of Facebook ads. The bottom item on value ladder is the one you can turn into the lead magnet and use it in your ads. And don't get me wrong - "bottom" does not mean there is no value here - it still satisfies you customer specific needs placing him or her at the beginning of the customer journey you have prepared for them.
So zoom out and think about your customer. Think about the path you would like to build for them. The more items you can place along the way the more earnings you will be able to "squeeze" from your customers. And always think about how the products fit onto steps of your ladder.
Selling one product? Socks?
Give them a guide about how to match socks with shoes...
Have a line of camping gear?
Few survival tip sheets would be a good start...
Complex services?
Pull out a small part solving one quick problem and give it away for free...
Time-based services?
How about a free hour of consultation or self-evaluation quiz for your potential customer.
Once you start thinking linearly about your product or services it is easier to come up with all the missing puzzles. Just hold your customer's hand and guide them from point A to B. They will thank you for it in loyalty and predictable spending.
Key points:
- you need value ladder to attract new customers and keep selling to existing ones
- put your lowest value offer all the way on a bottom and use it as a Lead Magnet to attract new customers and put them at the beginning of purchase journey
- make sure that all your offers are relevant and cohesive
- all your offers need to carry value and advance customer in your purchase sequence