By utilizing the Value Ladder, your business may increase sales.
We at Finlay-Mulligan & Co Accountants are aware of how challenging the market is right now. How then can you boost sales in this environment? Let’s look at the sales! Developing a relationship with your consumers by using the “Value Ladder” is one of the finest strategies to boost sales. The Value Ladder approach is based on the fundamental tenet that customers will spend more money if they value their connection with you more highly.
We have an initial offer of value at the bottom of the value ladder. This should be something you can do for no cost to your clients, like a free consultation or a phone call lasting fifteen minutes to discuss their needs as a business and how you can help, offering value before taking it.
Let’s say for example you are a bike retailer. Your initial offer of value would be to provide a free branded water bottle or a branded item of clothing at a showroom event. This initiates a relationship with your target market.
The next step on the ladder is the lead magnet step, a low-cost service option that helps develop the relationship with your client. In our bike retailer example, this could be an educational event on bike maintenance. Tickets should be low cost with giveaways provided throughout the event.
Now that you’ve provided value and built a relationship, you can offer your 1st tier product or service. This is a medium-priced item, such as a child’s bike.
By providing a quality product or service and delighting the customer, you’ll build a stronger relationship which will lead to a 2nd tier offering. This could be a mountain bike for mum and dad or something of similar value,
Finally, you reach the highest rung of the ladder – the loyalty offer. This is where you offer the high-end services that benefit your business most. Your clients have seen your value and are invested in you to join them on their journey and the benefits are as fruitful for you as they are for the client.
The Finlay-Mulligan & Co Accountants understand that you’re unlikely to be able to sell your highest-cost offering without first building a relationship with the customer. Start at the bottom of the ladder and build a stronger relationship each step of the way, offering only the products or services in which the customer finds value. This is a great way to onboard new clients and to generate new revenue.
For the latest business/practice news, taxation/financial resources and our Newsletter, visit https://fmco.ie/