The last couple of weeks I have been watching ‘The Voice’ with my children. Although I find it tedious waiting 15 minutes for every 90 seconds of singing, there are many great business lessons that we can learn as small business owners (apart from the fact everyone needs a business coach 🙂 ). I have used the 4 ways to grow your business format.
1. Increase the Price
The price the producers are able to obtain from the advertisers is no way reliant on the cost to produce the show. The advertisers do not care how much the show cost to make, they care about the VALUE they will receive from their ads being shown during the show. Just like your business, The Voice is trying to add more value to their customers i.e. the advertisers than what any other business is doing which in this case the other channels. To add more value you need to know what your customer values. In this case the advertisers want as people as possible to view their ads. Consequently, the more people who watch the more they can charge for their advertising space.
This is a great example of why the pricing strategy of using a cost plus markup is not always the best method of pricing. The cost plus markup method does not usually take into account the value the customer places on the product. If The Voice used the cost plus markup method they would probably be leaving hundreds of thousands dollars on the table. By focusing on what your customer values you are going to deliver a better and more desirable product and be able to charge a higher price.
Write down what your ideal customer values most. Is it a problem being solved or a benefit being provided? How can your products or services add more value to that problem or benefit?
2. Increase the number of times the customer buys from you
Everyone has an emotional story
Have you noticed that every singer has a story usually involving some kind of past tragedy or regret. The goal of each show is to get you to watch the next show i.e. to increase the number of times you buy.
The producers know the more people who watch the show, the more they can charge for their advertising. The Voice is using these stories to create emotional buy in from the audience. If someone develops an emotional bond with one or more of the contestants story the viewer will want to continue to watch the show to see how they progress. As humans we all understand pain, the show tries to tap into our pain and then brings relief by the joy it brings to the contestants.
One of the ways your business is unique is your story. By sharing your story you will not only differentiate yourself from your competitors but you will also attract the customers who want to do business with you. That is develop your own unique niche.
The other type of story that you can use in your business is about the product itself. For example, how the family secret has been passed down for 3 generations or the extra care that goes in to making your product just right every time. One example of this is Jack Daniels Whiskey who describe ‘the craftmanship’ to develop their whiskey.
What is story? Where and how are you going to communicate that story?
Increase the number of contestants
Have you noticed that they have increased the number of contestants that each coach is taking to the next round has increased from 12 to 14? One simple reason. To increase the number of advertising slots to get the advertisers to buy more from them. Very simple really.
3. Increase the amount the customer buys from you each time
Television is no longer just about tv ads. Below is a link that describes the video link ads on the Voice’s website as 4 times more effective than the TV ads. The network has the opportunity to cross-sell or package their packages to increase the amount the customer buys.
Increasing the amount the customer buys from you will always be one of the best methods to grow your business. They are already your customer and we have all heard the stats it is 6 to 9 times easier to sell to an existing customer. What products do you have that are related that you could package together? The best way to find out is to ask your customer. Find out what problem they are trying to solve. Then develop packages that solve that problem.
4. Increase the number of customers
Selling the songs on itunes is a brilliant idea. It costs them very little to produce and they have opened up a new market with millions of potential customers. Peter Drucker said that business is marketing and innovation. I think this idea incorporates both just beautifully. This is also another example of the value to the customer is far greater than the cost to business.
Start to think about your business differently. What ways can you innovate new products and open new markets.
Develop critical mass
Success breeds success. The more popular a show is the more popular the show becomes as others will watch to see what all the excitement is about. As the ratings are published and it trends on social media it will attract a great audience. Momentum is all important in business. So keep building momentum in your business.
So there are some lessons from ‘The Voice’. This is not an exhaustive list, what lessons have you learned.
For more information on how you can grow your business, you can call me for a no obligation and informal chat to discuss your situation on 0434 972438 or Contact Me.Tags: Business Advice Profit