Growing a business is one key concern every entrepreneur think of. But allow me to digress a little…
In case you have never heard of “Michelin Star” – it’s a rating system used to grade the finest restaurants in the world on their quality. It is known as the ultimate hallmark of culinary excellence. A one-star signifies a “very good restaurant”. Two stars signify an “excellent cooking that is worth a detour”. And three stars mean “exceptional cuisine that takes you off your feet down memory lane”. But have you ever wondered why a Tire brand would be known as a household name – Michelin
But what on earth do tires have to do with food? Well, in the early 1900s, there were fewer than 2,000 cars on the road of France. It’s a small but competitive market for companies into car tires. So, to increase the demand for tires, the company started 11 years earlier – Micheline published a guide for the French motorist and called it “The Michelin Guide”. The brand believed that a rating guide for hotels and restaurants would compel the limited number of drivers to use up their tires and even buy more.
Did these marketing tactics work? YES!
But what does all this history has to do with growing my business? Well… EVERYTHING!
You see, there are only 3 ways to grow a business:
1. Increase the number of customers. Always work towards turning more new prospects into paying clients.
2. Increase the average value on transactions. Get your customers to buy more at each purchase.
3. Increase the rate an average client buys from you. Get each customer to buy from you more often.
Many businesses today are focusing on just Number 1 – “How to get more clients to their business”. This is the only thing they think of and not “how to maintain a good relationship flow with the existing customers. Many business owners have approached me only to discuss how can I help them do marketing magic that will give them more customers. That’s the only thing they think about. That’s the only thing keeping them up at night. They just want more leads and sales, without thinking about maintaining existing customers to grow their business.
Remember the Michelin story? The brand was focusing on just Number 3. They have only a few cars to sell tires to, so they have long-term relationships to build for these car owners.
Start building a real business that adds value and stops chasing the white rabbit. Then put a convenient price tag on your worth.
Building a successful business starts with the fundamentals. You don’t need to race to the bottom with your competitors on pricing.
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