Product ladder is the way you maximize customer lifetime value and customer satisfaction by moving your customers through a sequence of products. When you're building a product ladder, you want to make sure that each step in the sequence has its own benefits for customers. The best part about this strategy is it’s easy to do – all you need to do is set up an automated email sequence where the first email in your autoresponder says “hey, thanks for buying.” Then, move them through a series of messages that goes deeper into what they bought and why it's valuable for them.
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One Product is not always needed.
There's not always going to be just one product they need. They might need more than one, but they're not going to want to buy them all at once. A product ladder helps customers get what they really need, in a way that maximizes your revenue from them. They get the first step of their journey with you, then once they've earned access to the next level of products or services, congratulations: now you can start charging for it! It's a beautiful thing when a plan comes together — especially when it involves money!
Use a product ladders to create a sequence of products
A product ladder is a way of mapping and visualizing the customer journey. It’s a great way to think about how you can optimize your customers’ experience with your company while getting them something they want or need at each step.
A product ladder is made up of products that work together to help achieve business goals. Products can be physical or digital in nature, but they must be complementary in order to create an overall experience for the customer.
Each step in the ladder will include an action that helps move the customer along their path toward achieving their goal(s). These steps also serve as milestones within each journey—this means that it’s important for all steps on a ladder to feel like they matter, helping customers feel like their time spent interacting with your company was worthwhile and valuable; if there are too many unnecessary steps between “beginning” and “end,” then customers may become frustrated or disengaged before reaching their intended destination.
You are selling access, not ownership.
You are not selling ownership, you are selling access. This is a key concept of product ladders. You will find that most people don't need to own the product, they just need access to it and to be able to use it.
The difference between the traditional product ladder and this new way of thinking about products is simple: instead of putting all your eggs in one basket (i.e., building a single type of product), you spread out your risk by creating multiple offerings that offer different levels of convenience for customers at different price points.
Examples include Netflix streaming versus DVD rentals; UberPOOL versus UberX; Kindle Unlimited versus Kindle Owners' Lending Library; Spotify Premium vs Free vs Student accounts
The customer earns access to the next level by purchasing or using the current one.
You can use product ladders to help customers progress through your products and services. The customer earns access to the next level by purchasing or using the current one. They should always know what they get when they buy a product, and the next product in the series should be the next logical step for them, with an increased value thanks to their previous purchase. It’s important that your sales team are trained on how this works so they can explain it clearly to customers during every call.
Conclusion: Importance of a Product Ladders.
The most basic part of a product ladder is simply offering customers more than one product. This can be achieved by creating a tiered system, where each tier offers more value to the customer, but costs more for you as well. Let’s say, for example, that you sell organic dog food in your store and then have an upgrade option with special treats and toys. The first purchase is for the food itself; second is for the dog toys; third is for the special treats (which are also sold individually). Each time someone buys from your store they have an opportunity to buy again from another tier in this series.
The idea behind this strategy is that each item costs more than the last one purchased by the customer—so it makes sense that they would want to keep buying from us because they know we sell quality products at affordable prices—but there are other benefits too.