Tactical Tuesday - The Value In Your Value Ladder (Video & Transcript)
Look, I don't know what you business owners are struggling with out there, but my clients typically struggle with one if not all of these three things. That is getting more customers and getting previous customers that come back more often and raising the average cart value of each customer. Who does come in right now? If you struggle with one of those, you're going to want to stay tuned because this is about to be value-packed and you're going to learn much information to help you shortcut and not have these problems anymore. Okay? Now getting those problems fixed-do require a unique combination of strategies based on where you and your business are currently at this point. Okay.
Speaker 1: (00:52)
I'm Joshua madu, customer acquisition strategist, and I help you sell your products and services better online. Okay, so today I'm going to be teaching you how to identify if you have a value ladder in your business and if not, how to form one so you can provide more value, saw more of your customer's problems, all the while getting paid more to do so. Right? So first, let's understand and identify what a value ladder is. A value ladder is a method of mapping out your product or service offerings visually in ascending order of value in price. So the more value you provide to your marketplace, the more you get paid. The value ladder allows you to cater to your clients needs no matter where they are within the pipeline of your company. This is very important because if you know where there are, you know where they need to go next.
Speaker 1: (01:50)
Also, then you can take them there. So let's get on with the visual representation. Also, if you don't, you should grab a pen and pencil right now. If you don't already have a value ladder in place with your business, literally copy out this schematic. I got this from Russell Brunson's dot com secret book, which is phenomenal. You can find the link in the description below to get your free copy. Okay. What you want to do is go through and literally draw these steps out, draw the arrows, draw the money sign, draw the little stick figure, and put the value and price graph right there. So you can map out your value ladder right here today together with me. Joshua do. Okay, so now that we have that visual representation and now that you've drawn this out, right? If you haven't positive video, now take a little Napkin, a little pen and scribble this out real quick so you can get a rough sketch and idea of your value ladder.
Speaker 1: (02:51)
Now we're going to go into this. So here is an example of a value ladder for a dentist. Now that we can deep-dive right you to make sure this first initial step, that the customer is taking a right over here. First initial step right there. You want to make sure that it is a natural step. Do you know what I'm talking about? That is like the most natural step to take. So with dentists, it's usually they have come in for teeth cleaning on why you're here, your teeth a little bit round. Let's go ahead and do some whitening and then maybe they're a little bit crooked. So let's go ahead and throw in Invisalign on top of that and then perhaps you need to get those molars, those wisdom teeth. Perhaps you have some decay you need to get those out. It would help if you got some cosmetic dentistry.
Speaker 1: (03:35)
Moreover, then at the bottom you see there you have six months checkup that their continuity program right there. So if you don't have this in ascending order of value in price, then you don't know where your business is that usually with this next example, we come in here and you'll see for chiropractors, they often have adjustments, right? They have adjustments and adjustments and adjustments, and that's mainly what they have. They do have some other services depending on what type of chiropractic office you are, but it's primarily adjustments. Now for the average Chiropractor, right? You usually think, oh, a consultation and exam is the first logical step to bring somebody in, which it is, and that's the way it has been done for years. However, correct me if I'm wrong. Consultation and exam do not sound sexy. Like I hated taking exams when I was in school.
Speaker 1: (04:26)
Also, the consultation is, is not, doesn't have a negative connotation, but it's not a positive connotation. It's neutral. Try to sexy that up a little bit and try to say like, yeah, come in and make a self-discovery conversation. Get you on in here, find out and cater to your specific needs. Because remember your customer thinks that their problem is different, unique from everybody else. So you want to keep that in mind when you're talking to your market. Okay, so let's go ahead and X that out. You want to have that be a part of the package. Don't even use the word consultation cause I don't think it's sexy. So, if you think it's sexy... I don't know, I've got a weird idealisms, but usually, then the first logical step is come in for that consultation. Examined massage, tried to like or an adjustment.
Speaker 1: (05:09)
Try to bundle that as well as at the top you have your wellness package. A lot of chiropractors I know and the ones I work with, they have a wellness package for life that they input there and then on the continuity they have adjustments and other services. But the key note I want you to take away from here is look at how many different places you can put the adjustment or one particular service within your value ladder. It doesn't have to go in one particular spot, it's just you want to send them from value. Maybe the adjustments are a monthly basis or maybe you need like a super adjustment. I don't know what you need, but you might need it and you can put it anywhere within this value ladder, which is completely awesome. Right? Moving on, we have a value ladder for a restaurant now, a value ladder for a restaurant.
Speaker 1: (05:52)
Is completely and utterly different from any other market. Even though it is more service based industry, they are slinging a product, right? The food, they got the food coming out. So with that you might start off to bring the customer prospect in a Bogo, then birthday club. Then you have kids eat free day. And ultimately what I believe for restaurants is their, their bread and butter is that they start to cater, right? So, and once again, to take away from this specific slide, I want you to see how this all fits together, right? It doesn't have to go in any particular place because you can bring somebody in with a birthday club. Hey, do you want to be a part of our birthday? You get a fruit. Let's say for a pizzaria be a part of our birthday. Uh, become a part of our birthday club and receive a free pizza on your birthday.
Speaker 1: (06:40)
Boom. It's that easy. And nobody's going to want to share a pizza alone, right? They're probably going to have like 30, 40 people with them at 10, at least. So they're going to order more than one pizza on the birthday club. Kids eat free, moms and dads get together with their kids and go out and eat that pizza together. That raises the average cart value. When they do come in Bogos buy one, get one free pizza. That's a great way to bring new customers into the door and then get them into all these other programs. And then if you get that right customer that has a business that is throwing a party or needs some catering, boom, high ticket, high money right there. And then once again, get some weekly and monthly events going on, some Karaoke, um, some, some singers or a special wine or, or food of the week, this, this and that.
Speaker 1: (07:26)
And making new, make it exciting, make it sexy because that's what people want. And that's what they want to have. And especially in this market is an experience with that restaurant to tie it to a good emotion so they continuously come back. Isn't that something? That's pretty awesome. Now moving on, let's take a look at your pipeline, but really it's not even a pipeline anymore. Like that's old. Let's get that out of the way. Let's look at your community, right? And we're gonna get into white. Dory is applicable right now. I love do I love finding Nemo? That's one reason, but reason number two is when we look at our community folks, right? When we look at this community, we want to look at the who, who they are. We want to look at the where, where they are hanging out and we want to look at the bait to bring them in because once we know who our target market or our target or Avatar, our ideal Avatar is, and we know where that ideal Avatar is hanging out and you have the proper bait, you get the this result.
Speaker 1: (08:27)
It's like catching your first fish. It's so freaking awesome and you can't do, you can't be cause you your first fish. I remember I caught my first fish when I was like seven. It was like a two pound catfish. It was huge. Couldn't even believe it, but I was expressing the same type of feelings that this little girl is pressing here and you'll be expressing the same when you find out the WHO, the where and the bait to bring them in and to send them up your value ladder. Okay. No, it had the pop up. Gosh dammit. We're going to go a little bit more in depth. We're going to take a deeper dive. We're going to understand this a little bit more, right? So let's go from our ladder to a funnel, right? We're taking out the pipeline, we got funnels. Now funnels are awesome, and then it gives you a much clearer representation of where your prospects and customers are with your business, right?
Speaker 1: (09:24)
So you know where to take them and send them or show them, guide them next, right? It's pretty freaking phenomenal. So let's take it here and let's see. We got the bait, we got the front end, the middle, and the back end. If you see from the previous examples how these all fit in, the bait gets them in through the door, it gets a relationship built. We're starting to build the relationship with your prospect or customer, so that way you can move them to the front end. You can move them to the middle, and then you can move them to the back end higher ticket stuff to where you provide more intimate value to them. Of course, more a higher price. Okay? Now with that Bait, you want that first step to be Uber, Uber Easy. You want them to be able to take that step like they was just walking straight.
Speaker 1: (10:12)
It is still a step, but you want there to be as as least friction as possible. Okay? Now let's take a look and let's convert that. There we go to a funnel, okay, now you see here, super easy as bait for end, middle back end, and this is how the funnel looks and this is how it works, right? So let's dive a little bit deeper folks. Let's get really in there today cause this is a value pack and I want to give you all the information possible because when you add traffic to the equation and you're actively sending traffic into your funnel, right? You know that you have a funnel from Linkedin, Facebook, Twitter, Instagram, podcasts, blogs, your website, people, word of mouth. Once you have traffic and you have a funnel to send them through, right?
Speaker 1: (11:10)
A lot of businesses have funnels, but they don't know how they work. They just work, right, and a lot of businesses depend on word of mouth funnels, a referral funnels which are not scalable, which are not dependable. You don't know what you're going to get next month from this month. You're just waiting and hoping that someone comes in and pays your freaking bills. Let's not do that anymore. Let's be in control. Okay, so on the first level you have baked, okay, we're going with the bait. The Bait is to attract your dream customers. If you remember the fishing, you want to throw out the bait numerous times to make sure you are checking that during customer. Then a percentage of those will purchase your end product. If moving down the line a in a sending them up your value ladder, a percentage of those will go ahead and purchase the middle.
Speaker 1: (12:00)
Once again, you are providing more value at this level, so those who are seeking more value from you and you've served them not only to what they expected, but you exceeded their expectations, they're going to continue to move forward. And then once again, move forward. The handful of people that can afford and are willing to purchase your backend offer. For a lot of businesses, that's a lot of different things, right? And at various amounts, but you have to really take this and figure out what it is for you and your business, right? This is why we're doing this today. So you can figure out what is your value ladder? What, how is a customer moving through my business and how do I know if I'm providing them with enough value to move them to the next part or to the next step of my business value ladder.
Speaker 1: (12:50)
Okay. And then that's you at the bottom, which is still here, son of a gun. And then this is you here at the bottom. Once you provide all that value and you solve people's problems more, uh, on a bigger scale, right? You impact their lives more then. Boom. That value equals cash residuals. And it's a pretty freaking phenomenal how that works and how often it works, right? So let's see the numbers, right? Cause you're not going to know how to do this if you don't have numbers to uphold this and this information, okay, so let's take a chiropractor for facts, right? The chiropractor's target revenue is $10,000 extra a month. They want to 10 x their money. Let's say they're making $1,000 I want to 10 x that per month, right? I know from working with Chiropractic that the lifetime value of a chiropractor is usually around 20 503,000 but for this, the sake of this equation, we're going to go ahead and do 15 to a 3000 okay?
Speaker 1: (14:00)
1500 or 3000 now, all you need to get to that 10 x mark. If you're at $1,000 and you want to get to $10,000 all this person needs at $1,500 is seven new clients, right? The lifetime value of each client, each avatar that you create, each key customer that is going to work with you for their lifetime value, and you're going to provide the most value and they're going to pay you for that value. All they need is seven clients. I want to hammer this in so you can understand the importance for all my brick and mortar business owners out there. You need to know this is huge. All you need is seven. Where do I get the number seven right? For the a back end high ticket offers that you might have maybe a six month membership or a year membership up front type of deal.
Speaker 1: (14:51)
How did I get that? Well, from that seven you need 140 leads or opt ins for your Bate. Okay? You need people to give you a name, email and phone number, and then out of that hundred and 40 all you need is seven. Wow. Isn't that fricking crazy? All you need is seven. All you need is then boom. But why one 40 let's dive even deeper into the math here. Well, one 40 times 0.05 or 5% conversion rate equals seven right? And that's the minimum. What if you had a 10% conversion rate? Right? That would be huge. All you, that would cut everything in half. All you need is 4.5 but we're not 3.5 but we're not going with Halfs cause there's no half people. So you need four. Okay. And then uh, but how do you get one 40 well, let's look, the number of link clicks to the landing page that are needed is 700 why 700 because 700 times 0.2 which is 20% of conversion rate.
Speaker 1: (16:00)
So you are paying for advertising, you send 700 people to landing page. All you need out of that 700 is 20% conversion of people giving you their name, email, and phone number saying, Hey, I'm interested in your service and I need you to fix my problem now. So can you fix it? Bleeds? Okay, all you need is 20% which comes out to 140 and then 5% of 140 is seven and if you get those seven core clients that you know are gonna extend the lifetime value at the minimum lifetime value, if somebody's really in back pain and they really need that to go away, they're going to stay with you for that. Probably the 2,500 to 3000 mark. You know what I'm saying? And this is just the chiropractic example, but how much would you need to spend on ads with those numbers? Taking all that into account, all of that information, how much would you need to spend on ads to hit $10,000?
Speaker 1: (16:56)
Well, let's see here. Let's go and do some more math. Who loves math? Josh does awesome. So all you need is $2,000 you spend $2,000 with a $15 cost per lead, meaning for every person that gives you the name, email, and phone number, and every person that didn't, it's $15 for the people who did, right? It's, it's pretty crazy, which is very possible. It is possible to hit those numbers, those metrics, depending on the offers. There's a lot of variables in there. Like I said, there's a lot of different pieces of the pie that need to go into making the pie before the pie is made and it's sitting on the window and you smellin. Some fresh Blueberry Cherry Pie.
Speaker 1: (17:40)
You know what I'm saying? But be honest, all my business owners, would you spend $2,000 on advertising with a tried and true method and strategy of optimization to receive $10,000 in new revenue? Huh? Go ahead and comment down below. Let me know. Yes, no. What'd you do it? Would you spend $2,000 would you spend $2 to get back $8 that's all I need you to ask. Would you spend $2 to get back $8 that's like walking into a bank saying, Hey, I'm gonna give you these $2. You're going to give me $8 back. Sound good, sound great, perfect. Have a great day. And just like that, super easy. Okay. Now you might be confused, right? That was a lot of information. A lot of mental math. Maybe if you didn't whip out the calculator fast enough, go back, rewatch it. You know, do a little blog fact checking.
Speaker 1: (18:37)
I want you to fact check me. Please fact check me because I'm out here. baby. Now Albert Einstein said, if you can't simplify something, then you truly don't understand it. Okay? Now I want to simplify it for you so you can understand. It is not that hard once you break it down to simple math. So let's simplify, simplify, simplify, semper-fi. For my marines out there and not a marine, but I respect you and everything you do for this country, all the men and women in our armed forces. Thank you very much. A, but on average here, look, you see a hundred prospects. Click on your ad, okay? Super easy. You start off with a hundred hundred prospects. You pay for an advertisement, a hundred prospects. Click on it. People saying, Hey, I might be interested. Let me see what type of information or what type of offer you have, right?
Speaker 1: (19:27)
To get them through the door. This is the bait. Remember right where this is the funnel. This is the the value ladder and that is also a funnel and you're ascending them as they go and ascend up your value ladder. Then out of those hundred prospects, you get about 20 to give you permission to be contacted and then to pitch them on your front end offer. That's 20 people, okay? Now that these are all at the average, these are at the bare minimum of statistics on an industry average. You could do way better than this, so you can do way worse than this. It just depends on what type of strategy. What are you doing, who is doing it for you or are you doing it yourself? Are you just wasting money where there's a lot of variables, folks, a lot of variables. Okay, so 5 to 10, once again, five to 10% ask you for more value.
Speaker 1: (20:18)
Now we're at the middle of the value ladder, a kind of a ascending upwards towards that back in high ticket offer, right? And then depending on how you serve within the three previous, um, depending on how you serve within the three previous steps, right, they're gonna either want to move towards you or move away from you. It's that simple. Right. Me As a lead generation marketer and strategist, my job is to get them through the door and not that hard to get somebody through the door to get somebody to spend money with you. It does take time, does take strategy, does take a lot of variables once again, but it's not that part. The hard part is making sure on the back end all my brick and mortar businesses, you chiropractors, you real estate, it's all about the customer service and how you make them feel special.
Speaker 1: (21:08)
You want to give them that wow factor. You don't want them to be like, wow, this was just kinda like you. You know what I'm saying? You don't, you don't want that. Wow. You want that? Wow. The, they would above and beyond for me, they w they really did a number, they helped me, they added value to my life. I'm all the better for it. And honestly, I need more if I want to continue to have this high off life, right? It all depends on how you serve at the end of the day, but that's the simple, simple, simple math right there. Out of a hundred you get 20% out of a, there's the 20% essentially you get five, 10% maybe better, maybe worse, and depending on how you serve and if you provide them enough value, they're going to want to pay you for that value. And then you can always ask for more.
Speaker 1: (21:50)
It's pretty freaking phenomenal folks. So I hope that you enjoyed this and learn about this and if you want to learn a more in depth about this value ladder, this traffic, this information, there's this book I want you to check out. It is called Dotcom secrets by Russell Brunson. You can get these free book. All you got to do is pay shipping and handling is down in the description below. And I'm telling you this underground playbook to grow your company online is something that every brick and mortar business needs to read. Period. You need to read it. You need to listen to it. You need to understand the concepts, the strategies. Because here's the, here's the thing. Look, here's the thing. If you are not online and you are not active online, you're not creating a community. You're not a, you're not advertised, you're not being seen.
Speaker 1: (22:44)
You don't have an audience. Um, all of these things, right? 20 years ago, and you're 19 years ago, when websites started to become all the rage, people were like, oh, we didn't need that. And then three years into it, two years into it, one year into it, those that had a website, we're doing significantly better than those brick and mortars who? Vinod, okay? Now, if you're not doing the things in this book, I'm telling you, you will not be here in 2020 in 2018 over 900,000 businesses, small businesses out of the 20, what? Seven 29 million small businesses in the United States, right? And 22 of those are small businesses and 900,000 close their doors in 2018 alone because of one issue they couldn't get, or one of three or all three, right? They couldn't get new customers, they couldn't up the cart value of their existing customers and they couldn't those customers to come back, even if they did have the cart value.
Speaker 1: (23:48)
Right? So you're struggling. You need to get this book. This book is vital. This book has changed mine and so many other lives. This book right here is phenomenal and all you do is a quick read. You'll be like, oh my God, there's, there's doodles. As you can see, I pulled some of the, the graphics from that book to show you and simplify because it breaks it down so easy. It's like marketing for dummies and it's done by Russell Brunson who was the most charismatic and makes marketing interesting. So if you are going to do this on your own, get this book in the description below because you need it free business online and in person, you're going to need this book. Now look, if he found this information helpful and it's providing you with more clarity. If you're like me and you'd rather pay for someone to bring you the results quicker without making all the thousands and maybe tens of thousands worth of dollars in mistakes.
Speaker 1: (24:45)
I'm telling you folks, I'm telling you and you just want to focus on what you love to do by doing more of it. Go to them and do marketing.com/s m l once again, that's Madoo marketing.com forward slash s m l m a d u m a r k e t, I n g.com four slash s m l and on that page you'll just get a brief introduction of who I am, what my company does, what we're able to do for you and how we might be able to help, right? If we can help you, that would be terrific. And at the bottom there's a short form. Fill out your name, email, phone number, and the other questions that I ask you, it will be sent to me and then we'll set up a time for a discovery call to find out what you and your business needs to get above and get ahead. Once again, this has been, Joshua, do please stay tuned for these videos as I planned to provide a lot of fricking value. As you can see with this short little introduction, you can go so much more in depth, but I was trying to get through it for time sake, your time, my time, and uh, yeah. Have a terrific day.