Maybe you have a healthy marketing mix, you’re well-invested in all areas of the funnel, your organic search is dialed-in and your promotions are acquiring new customers (not just recapturing existing customers). But you still aren’t hitting your goals. What’s next? The B2B space holds a couple key secrets we see brands not leveraging:
Secret #1: You don’t have a “value ladder”
Follow me on this example: Your local dentist might send out a postcard to her ideal demographic offering a free cleaning. You come in for the free cleaning and while there, she mentions that your teeth are looking a little stained and he could whiten them while you’re there. You agree and while she’s whitening them, she notices that you must have had braces as a child and it seems that your teeth are shifting again. So she sells you into a retainer. And over the course of the return visits, you buy an expensive toothbrush, opt for cosmetic surgery, etc etc.
The point of this example is that every business, brands included, have a value ladder to nurture customers through to incrementally increase revenue. What’s your value ladder?
Secret #2: You’ve only got one main product offering
Using our dentist example, maybe your revenue isn’t increasing because you only sell retainers and you’ve maximized those potential people. What’s next? You need to create (or oftentimes just reposition) products that get people into your door – the free cleaning and whitening services level people. And once you’ve tapped out all of those folks, and now you need to create a “cosmetic surgery” – that is, a high-end – package.
We worked with a very well-known national boutique fitness brand that did this extremely well. They had an online workout membership you could subscribe to. And the next upgrade was an in-studio class package. And after that, the next upsell was prepaying an annual studio membership. And for the handful interested, they offered an ultra-exclusive in-person wellness retreat hosted by the founder of the company.
How can you create packages and reposition products to create entry, mid-tier, and high-end offerings to ensure incremental revenue?