In business, it's easy to focus on the day-to-day transaction of selling products and services. However, if you want to create lasting value for your business, you need to start thinking about ways to move away from the transaction and instead focus on creating more, longer term value for your customers.
One powerful framework for doing this is using what's known as the ascension model. The ascension model is all about moving your customers up a "value ladder", so that doing business with you delivers better outcomes for them and growing value for you.
Here's how it works:
At the bottom of the ladder is the Transaction stage, where your customers are simply buying your products or services with no loyalty or attachment to your brand. Most customers start here, because it is a low tension, low commitment sale.
The next rung up is the Engagement stage, where your customers begin to develop a positive association with your brand because you offer increased value to them, but for a higher price.
After that is the Relationship stage, where your transactional thinking customers become on-going "clients" and true fans of your business. They're not just buying your products or services, but they're also telling their friends and family about you.
Finally, at the top of the ladder is the Advocacy stage, where your clients engage you for multiple services at the highest level and actively promote your business.
The key to moving customers up this value ladder is by consistently showing them and providing them with a growing value proposition. By providing more value to your customers, you'll not only increase lifetime customer value (LCV), but you'll also turn them into raving fans for your business.
So start thinking about ways you can provide more value to your customers today!
What's your business value ladder look like? Don't have one? Let's talk!
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