As a CEO or business leader, you already know that keeping customers happy is paramount to your brand’s success. But here’s the million-dollar cherry on top with sprinkles question: Are you truly delivering the value that your top customers crave?
To find out, you’ve got to use a strategic tool that goes beyond the basics - a framework that guides you up from the baseline of customer expectations to the golden opportunities that can set your brand apart. Enter: the Value Ladder.
I've found that this tool is a game-changer, especially if you're serious about driving customer loyalty, maximising revenue, and building a brand that’s impossible to ignore. It's not just about delivering what customers want; it’s about knowing what they love, what they like, and what they need. And knowing this can transform your offering - and your bottom line.
"Whats this Value Ladder thing you speak of?" you say - I'm glad you asked! In this post, we’ll break down what the Value Ladder is, how it works, and most importantly, how you can use it to redefine your value proposition. We'll also dive into an exercise to reveal what your top customers truly value, complete with questions to help you dig deep into their hearts and minds.
What Is the Value Ladder?
Think of the Value Ladder as a staircase your customers climb. Each rung represents a different level of value you offer, and each step upward reflects an increase in customer satisfaction, loyalty, and their willingness to pay more for your services.
Must-Have (Bottom Rungs): These are the things that your customers expect as standard in the cateogry or for them to make a purchase of any kind. If you don’t offer these, you’re not even in the game. It’s the price of entry into your market - a hygienic baseline. For an airline, it might be the expectation of safe, timely flights. For a tech platform, it could be a seamless, glitch-free user experience.
Would Like to Have (Middle Rungs): This is where you start differentiating yourself from the competition. It’s not strictly necessary, but it makes your brand more attractive. Think of this as the valuable outcomes that make customers pick you over someone else.
Would Love to Have (Top Rungs): This is the premium stuff - the thing that makes customers say, “Wow, I’d pay extra for that!” It’s where your brand truly stands out, offering exclusive value that customers didn’t even know they needed but now can’t live without. It's where they find things that ONLY your brand can give them. It’s the sweet spot for loyalty and higher margins.
The Rule of the Ladder
Here’s the thing: you can’t skip steps. The bottom rung has to be solid before you can even think about climbing higher. If you ignore Must-Haves and only deliver on the nice-to-haves, your customers will see through it and bolt to a competitor who meets their basic needs first. Nail the basics, then ascend.
Why CEOs Should Care
Imagine this: Your brand is great at the foundational stuff, but you’re struggling to move up the ladder. Meanwhile, a competitor offers something in the "Would Like" or "Would Love" categories that you don’t. Who do you think is winning your customers’ hearts (and wallets)?
The Value Ladder can be your guide to identifying opportunities for differentiation. By focusing on what your top customers value most, you can create offerings that justify premium pricing and deepen customer loyalty. Now, let’s dive into how to do that.
The Value Ladder Exercise: Talk to Your Top Customers
Here’s a simple yet powerful exercise that will provide clarity on what your customers value across every rung of the ladder. All you need is access to your top 10-20 customers - yes, the ones who already know and love you - and a commitment to listen deeply.
Step 1: Schedule a Conversation
Reach out to each of your top customers for a 30-minute chat. Tell them you’re refining your offering and would appreciate their candid feedback. Let them know that this is an opportunity to shape how you serve them.
Step 2: Frame the Conversation Around Value
In your conversation, use the following questions to uncover what they Must Have, Would Like to Have, and Would Love to Have:
1. Must-Have Questions:
“What are the essential things you expect from a company like ours?”
“If we stopped offering these things tomorrow, would you consider switching to a competitor?”
“What’s the one thing we absolutely cannot get wrong?”
These questions will help you uncover the baseline expectations - those non-negotiables that keep you in the game.
2. Would Like to Have Questions:
“What features or services do you appreciate but don’t necessarily expect?”
“Are there any areas where we’re better than others you’ve worked with, but you could still live without?”
“If we made a few small improvements, what would those be?”
This is your chance to see where you’re adding a little extra value. It’s about understanding what makes you the preferred choice.
3. Would Love to Have Questions:
“What could we offer that would make you think, ‘Wow, this is amazing’?”
“Is there something you’d be willing to pay more for if we delivered it?”
“What’s a problem or challenge you have that no one has solved yet?”
This is where the magic happens. It’s about identifying opportunities to surprise and delight—ideas that can elevate your brand above the competition and inspire your customers to rave about you.
Step 3: Analyze the Responses
Once you’ve gathered feedback, categorise the insights into the three value tiers: Must-Haves, Would Like to Haves, and Would Love to Haves. Look for patterns, surprises, and any potential opportunities you might be missing. You might discover that a feature you thought was "nice-to-have" is actually critical to your customers—or that a premium service could open up new revenue streams.
Bringing It All Together: Building Your Strategy
Now that you have a clear picture of what your customers value at each level, use this information to guide your strategy:
Secure the Must-Haves Make sure these are rock-solid. Your customers should never have to think twice about your ability to meet their basic needs.
Differentiate with the Would Like to Haves Focus on these as areas for innovation and branding. How can you make these features more visible in your marketing?
Upsell with the Would Love to Haves Use this as your key to premium pricing. Position these features as exclusive and build marketing campaigns around them. Make it clear that this is what sets you apart.
The Bottom Line Climbing the Ladder Pays Off
Using the Value Ladder is like playing chess while your competitors are playing checkers. It forces you, and your team, to think strategically about your offerings and how you can move customers up the ladder - because the higher they go, the more they’ll invest in you. Its a great framework to gather information for, and then communicate out to your team with.
So, grab that list of your top customers, book those conversations, and get climbing. By understanding what truly matters to the people who matter most, you’ll build a brand that not only meets expectations but exceeds them—one rung at a time. Enjoy!