In 1889, brothers André and Édouard Michelin founded their tyre company in France. It was the early days of personal motoring, and their tyres were popular and built to last. The problem? People who didn't drive very much rarely needed new ones.
Aside from increasing your volume of customers and pricing, frequency of use and repeat purchase is a huge growth lever for increasing revenue, and one many of us are focussing on right now.
To boost tyre use, the Michelin brothers launched their travel guides and maps, highlighting driving routes and food worth travelling for.
The detailed and well-researched guides encouraged drivers to travel further — and, of course, they needed sturdy Michelin tyres to complete their journeys.
In 1926, the Michelin star rating system was created to award the best restaurants in the guides and further cement Michelin as an authority on dining. Durable car tyres and the pursuit of exceptional cuisine became forever entwined.
Today, Michelin covers 34 destinations, and a 'Michelin star' is the goal of almost every aspiring chef. The Michelin brothers predicted the future of travel and made sure they were at the forefront of a growing trend.
The guides and rating business costs double-digit millions for Michelin to run. But as a marketing tool, it's efficient—especially when compared to the cost of sponsorships and bumper TV placements.
With France as its core original market, the association of fine dining puts Michelin well ahead in terms of perceived quality and, with that, revenue.
Tyres and fine dining. Michelin knew their audience and how to inspire them.
Don't get bogged down in thinking about your own sales numbers, and instead focus on the context around customers' use of your product.
Stay customer and value-first.
This is especially useful for businesses introducing new products to a market.
Rather than focusing on sales and shouting "buy my product!" and rattling off discounts, try adding value for your audience in a way that will encourage consumption or require your services more often.
First, understand why and how people use your product and then work on increasing that behaviour.
What are they already doing, that you could make easier for them?
Or what would they use your product for if only they knew how?
Michelin don't need any promo from us but if you're keen on exploring new food, here's the guide 👉 guide.michelin.com/en
Keep being an outlier 💪
J + K
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