CF 2.0 Geek Out Blog/CF 2.0 In The Wild/Ascend More Customers Up Your Value Ladder Using a Challenge Funnel

Ascend More Customers Up Your Value Ladder Using a Challenge Funnel

Friday, November 03, 2023

Ascending Customers Up the Value Ladder: Harnessing the Power of Challenge Funnels

In today's competitive business landscape, it's crucial to find effective strategies for maximizing customer value and generating revenue. One powerful technique is to utilize a challenge funnel to ascend customers up your value ladder. In this blog post, we will delve into the concept of challenge funnels and how they can be leveraged to drive customer engagement and increase sales.

Understanding the Challenge Funnel:

A challenge funnel is a structured approach that combines elements of workshops and webinars to guide participants through a series of steps aimed at achieving a specific goal. Unlike traditional webinars, challenge funnels prioritize hands-on experiences and tangible results. By offering participants a chance to accomplish meaningful tasks and receive personalized guidance, you can build trust, establish rapport, and position yourself as an authority in your niche.

The Role of Challenge Funnels in Lead Generation:

One of the significant advantages of a challenge funnel is its potential as a lead generation tool. By presenting a challenge as a valuable free offer, you can attract prospects to join your ecosystem. For instance, a live challenge can be promoted through various channels like social media platforms, and participants can sign up for free. However, it's important to note that even though the challenge is free, there can be upsold or premium upgrades available to enhance the participants' experience and provide additional value.

Ascending Customers with Upsells:

Upsells play a critical role in the success of a challenge funnel. After participants have engaged with the initial challenge, you can present them with upsell offers that provide enhanced benefits or exclusive access. A proven strategy is to offer a VIP upgrade as the first upsell. This creates a sense of exclusivity and offers additional perks like extra Q&A sessions or extended interaction with your team. By providing a VIP experience, you can increase the perceived value and willingness of participants to invest further.

Leveraging Continuity Programs:

Challenge funnels can serve as a gateway to continuity programs, ensuring long-term customer engagement and recurring revenue. Continuity programs are subscription-based models that provide ongoing value and support to customers. For example, after participants complete the challenge, you can offer them a free trial of your continuity program as an upsell. This approach gives them a taste of the program's benefits, encouraging them to continue their journey with your brand beyond the initial challenge.

Moving Up the Value Ladder:

Ultimately, the goal of a challenge funnel is to move customers up your value ladder. By offering a free trial or membership, you can provide value upfront and establish a strong connection with your audience. Once they have experienced success and built trust with your brand, you can make additional offers such as high-ticket coaching programs, advanced courses, or annual subscriptions to your continuity program. The challenge funnel serves as a stepping stone, enabling you to efficiently ascend customers to higher-value offerings.


Challenge funnels offer a powerful approach to engaging customers, building trust, and increasing revenue. By combining hands-on experiences with well-crafted upsells and continuity programs, you can guide participants up your value ladder while delivering exceptional value at every stage.

As you implement challenge funnels in your marketing strategy, remember to tailor them to your unique audience and continuously analyze and optimize the results. Embrace the potential of challenge funnels and watch as your customer base grows, and your business thrives.

Click here to watch the full video

Episode Recap:

Susan emphasizes the importance of using a challenge funnel as a lead generation tool, as well as a way to sell higher-priced offers. Susan provides an overview of the typical challenge funnel, which includes an opt-in page, order bump, upsell, and confirmation page.

Get All Future Episodes:

Your First Funnel Challenge

Get Active Campaign