Profit. It’s what business is all about.
Yet, in the pursuit of profit, there are many approaches we can take and options to decide from.
Do you sell a product or a service? Do you target luxury, budget, or “in-the-middle” markets?
Once you’ve decided on what you’re going to sell, you then need a plan for how you’re going to sell it. No one size fits all – different offerings need different approaches to sales and marketing. After all, you wouldn’t market a budget hotel room in the same way that you would market a room at The Plaza.
In this guide, we’ll walk you through high-ticket digital marketing. We’ll cover what it is, how it works, and offer some tips on how you can apply it to your own business.
A high ticket item is simply an item that is both expensive to buy and brings a considerable amount of value to the purchaser. Unlike products that cost much less, those buying high ticket items usually go through an extended product research phase and will only make that type of purchase infrequently.
There are countless common examples of high ticket items, such as:
- Luxury hotels
- Cosmetic surgery
- Qualifications (such as a degree or extensive online course)
- Event tickets
The typical value of a high ticket item varies depending on who you ask and the type of product/service. For example, a $500 car may be considered a big purchase for one person, whereas a multi-millionaire may be carrying that sort of money around as spare change. As a rule of thumb, the term “high ticket” is generally applied to anything upwards of $1000.
To further clarify what we mean by the term “high ticket”, take a look at some examples below:
Polestar is an industry leader when it comes to electric vehicles. Although its cars certainly aren’t at the luxury end of the scale, with the likes of Porsche and Lamborghini, but its basic models, such as the Polestar 2 at around $50K, would be considered a high ticket item.
Tiffany & Co
Tiffany & Co is well known around the world for its jewelry. The majority of its products would be considered as high ticket items, such as this ring priced at $6000. For its more expensive and custom items, Tiffany & Co ask customers to contact them, rather than listing the price – giving the brand an exclusive feel.
Perhaps unsurprisingly, high ticket digital marketing is the act of leveraging digital marketing tools in order to support the sale of high ticket products. However, unlike using digital marketing to sell other types of products, the objectives of high ticket digital marketing are often different.
For example, an individual selling a low-cost ebook (let’s say $10) may use digital marketing methods to make sales. The likelihood is that their strategy would be to use marketing methods (such as targeted Facebook ads) in order to make direct sales.
On the other hand, an individual selling a high ticket item such as an extensive online course (let’s say $2500) would need to find, nurture and educate potential customers rather than going for the direct sale.
Using digital marketing to sell high ticket items typically relies on a sales funnel. Sales funnels are marketing strategies that take customers through a number of steps in order to eventually convince them to buy a product. These steps refer to the customer and can be defined in the following way:
- Awareness of the product/brand
- Interest in the product/brand
- Evaluation of the product/brand (does it meet my needs?)
- Negotiation (on factors such as price and terms of purchase)
- Loyalty/repeat custom
Of course, several factors come into play and the sales funnel can vary based on these. For example, some high ticket purchases won’t have a negotiation stage. Depending on your brand, you may also find that potential customers start further down the funnel instead of at the top.
A lot goes into moving potential customers down the sales funnel, including sales and marketing tactics. Some smart digital marketing tools can be used, such as:
- Social media advertising – using targeted ads to get your brand/product in front of high-value customers
- Remarketing – helping you move potential customers who have already shown some interest in the product further down the funnel
- Email marketing – nurturing those who have shown interest (e.g. signing up to your email list) and progressing them toward making a purchase
Affiliate programs are common among businesses that sell high ticket items – using them can be a smart move. This is because high ticket items often require a high level of trust, which can be tricky to generate when a brand uses digital marketing methods alone. Working with affiliates helps you place a trusted individual in association with a high ticket product, leveraging that relationship to make sales.
Affiliate programs are effectively commission-based agreements. For example, a car company such as Polestar may offer an affiliate 5% of the purchase price of a car as a commission when that sale has come directly from them.
The great thing about high ticket affiliate marketing and programs (for affiliates) is that you can make large profits from just a small handful of sales.
Here are a few examples of high ticket affiliate programs:
This generous affiliate program from Bob’s Watches offers up to $1000 per sale made through your affiliate link/landing page.
Kinsta is a hosting platform that offers generous commissions to its affiliates. In fact, affiliates can earn up to $500 per referral and see recurring payments throughout the customer’s time using the platform.
So, high ticket digital marketing can be lucrative for all involved. But how do you get the best results? We offer some go-to tips below:
- Create buyer personas – Research your customers and create personas that can be used to tailor/target content and other marketing materials.
- Develop customer case studies – As high ticket items are expensive, you’ll need to earn customer trust. By creating case studies you can prove the success that other customers have had when buying from you.
- Use a thank you page – When someone buys, say thank you. It’s a small gesture but can help highlight that you understand that their purchase was a big investment. Doing so can build your brand trust and drive repeat custom.
- Invest in sales and marketing training – When you’re selling high ticket items, you can’t be amateur in your approach. So, it’s crucial to invest in proper training for your sales and marketing team.
- Score incoming leads – Create a system for scoring leads to ensure that your sales team know who needs the most attention and who is the most likely to buy.
It’s clear that high ticket items can be a great profit-making strategy. Yet they also require brands to build higher levels of trust. Although a customer may be willing to take a risk on an unknown business when the costs are low, when bigger investments are involved, they’ll want to know that they’re in safe hands.
Use the tips we’ve outlined in this guide to position yourself for high ticket digital marketing success.