Every time we buy a product or service we take a risk. Will it meet my needs? Will it last as long as I need it to? Will others judge me for it?
When we haven’t bought from that supplier before the risk is even greater. The bigger the investment the more indecisive we tend to become.
As business owners we need to reduce the risk for our buyers. We can use testimonials and guarantees for reassurance. But if we’re selling a high ticket item or one that the buyer sees as a risky purchase reassurance may not be enough.
Introducing the offer ladder.
This is where the offer ladder may help. The first rung on the ladder is low risk, low investment. The size of investment and degree of risk increase as we go further up the ladder.
When we’ve safely navigated the first rung we are more willing to take the next step, and then the next one until we reach the top.
The offer ladder and your pricing strategy.
Whilst the offer ladder can be great for customer acquisition and retention it can also underpin our pricing strategy.
By working out how one offer relates to others in terms of value to the customer, costs, time and resources needed for delivery etc. you can design a coherent pricing map for all your products and services. What’s more you can lead your customers from that vital first step to increasingly higher value purchases.
It starts with the first step
But it all starts with the first step. The one that involves minimal risk and investment for your buyer. That first step might be a free webinar or download from which you lead someone to a low cost course or a trial period.
Your ladder may lead your customer from a one to many service, through a small group offer and then to a bespoke service. Or it may lead them from a low cost item through to increasingly more expensive products. Each step on the ladder should build their trust in you and your business. That trust is what leads them to your highest value sales. It all starts with that first step
April introductions
In our April introductions, we want you to explain what the first rung of your ladder is. Who is it for? What will they gain from the step? How will your ideal customer access it?
For example, the first step on Fabulous Networking’s ladder is BizChat. It’s part of a free trial for visitors and takes just 45 minutes of their time. All we need is their name and an email address. The risk and investments are minimal.
They can try three sessions or mix and match with two other events before committing to a membership. Even then they only commit to one month at a time for an investment of £25 per month. Our ladder has a very gentle slope but lots of potential to add more rungs.
I’m looking forward to hearing how we can help your ideal client take that first step on your ladder.
