"How many deals are you winning?"
"What? Are you asking me what my closing rate is?" I asked.
"Yes, after giving ten presentations, how many deals are you walking away with?"
"Around 2-3" I said with hesitation because I knew I could do better (I know my products and services truly help small businesses transform, but somehow there was a disconnect during the sales process).
Those were the first words my new sales coach said to me when we scheduled a call after I filled out a form online inquiring about sales training.
Less than an hour later, he closed me on a high end sales training university that I committed to for three years.
How Their Company Maximized Their Sale On Me
Let me breakdown how exactly this company had me commit to their highest costing service they have... and why I didn't even hesitate to sign on the dotted line either.
I was stumbling around YouTube one day looking for videos on business strategies to help me expand my business.
I ran across this video that caught my attention. It was short, only around three minutes long and it was about selling. Basically the message was "If You're Not First, Your Last" and said "Don't Be A Little Bitch" and get out there and break obscurity and let the world know about your company.
(Before anyone gets offended, "little bitch" means a whiner, a crybaby, someone who makes excuses and thinks the world is unfair... that's all it means in the case... got it?)
So I googled his name and combed through every page on his website. On one of the pages there was a free report about "quick fix" closing lines that you could use to close more sales.
So I entered my email address and read the short report. On my next sales call I implemented what he said to do and it worked! In fact, it was really working and my conversion rate had soared.
I was so impressed by his knowledge and skills that I decided to buy and read a couple of his books.
The books alone helped me incredibly well that I was hungry for more. I started buying more and more of his more expensive products and services, because they were truly helping me and I was making more money because of what I was taught than the money I was spending on his products. It was a true investment with a positive ROI.
Then I remembered that in one of his books and in an email he sent me, he stated that he offers an online training university that could make anyone a master salesman.
He explained that there are very few natural born salesman and that most of the greatest salesman were made. They acquired the necessary skills to become great and therefore they were.
I thought to myself that if his best training was in this course, and I was already transforming my business from all of his other products, could this take my business to the next level?
So I went back to his website, filled out the form, scheduled a consultation, talked to my sales coach the very next day, and committed three years to the best training school I believe there is... and it's paid off nicely!
What did you notice about the process that was put into place? The exact process I went through?
Here's a recap on how this company increased their profit with me
- found him on YouTube (free)
- got his free report
- bought his books
- started buying more of his expensive products he was recommending
- purchased a high ticket training course (his ultimate goal) that lasted three years (continuity)
The process he put me through was called a "Value Ladder."
And this is the same exact system you can put into your business and see the same results.
One thing you have to understand is that it's extremely tough to get your leads to buy the most expensive thing you offer the very first time they discover you.
People will only buy form you if they know, like and trust you. And you establish that trust by offering value for free, selling them your inexpensive products and services first, and then walking them up your ladder to your highest costing product or service. Finally, put them on continuity to have them do business with you over and over again... make sense?
We can take a dentist and use him as an example. This is how a Value Ladder works for them:
- schedules a free cleaning
- charges for teeth whitening kit
- charges for a retainer
- schedules and performs cosmetic surgery
- sets recurring six month check up appointments for continuity
Now, that's not going to be the same services everyone will go through, but I was only using it as an example on how the dentist pulls you towards him with a free cleaning, recommends higher priced services to maintain good oral health, and then sets you on a continuity program every six months and keeps you his customer for a very long time.
What are ways that you can create a Value Ladder for your business?
Every business can and should have one. Even if your company doesn't particularly sell high priced products or services, you can still create some sort of continuity program into your business.
Here are two examples of continuity programs
- Start a VIP program where they buy a low cost annual membership and they get certain discounts and products only available to them
- Start a rewards program where they earn coupons or money off there purchase once they rack up a certain amount of points
Just use your creativity. Think of ways that you can create loyal fans that will want to keep coming back to you for repeat business (continuity).
The Value Ladder is key to building your marketing funnel and must be put into place before you maser anything else.
This is where you put a game plan into place where you offer something very affordable but gives tremendous value for the price. Then recommend your more expensive products or services all the way until your customer reaches the top of the ladder and buys your most expensive product or service and set them on a continuity program to keep them coming back.
It really is that simple. I bet if you draw out the image below and fill in the steps, you could have your ladder into place by the end of the day.
Now you just have to implement it and you'll be shocked how well it works and how you'll be increasing your customers buying frequency. Which means you'll be increasing your profit without increasing your customer base!
Do you have a Value Ladder in place that you'd like to share? Have you seen any creative ways to create a continuity program?
Leave a comment below and share... I'm sure it can help someone out!