Same Industry, Totally Different Business

How would you describe your business?

Most people describe their businesses in terms of what they make or the industry they serve. “We make car seats for toddlers,” one owner might say, while another explains, “We provide legal services for owner-operated businesses.”

Both descriptions are accurate, but each is incomplete. Far more powerful than a description of what we do is a description of what we mean to our clients. It might be more persuasive, for example, for our car-seat maker to say, “We keep babies safe in the family car,” or for our attorney friend to say, “We protect business owners from disgruntled employees, fraud, impatient heirs and the government.”

Is there a real difference here? Absolutely. The first set of descriptions focuses on activities, while the second set proclaims a mission. From the client’s perspective, that distinction can be the difference between a sales meeting and a sale.

A colleague and I were discussing similar distinctions recently in a conversation about a high-end restaurant group. What could they learn from others in their industry in order to market more productively?

Perhaps, I suggested, they should look outside their industry for insights. For marketing purposes, a high-end restaurant might have much more in common with a casino than with other restaurants. Yes, all restaurant owners might describe their businesses as “providing food and beverage to diners,” but their clientele would offer very different descriptions of their experiences.

The A-List clients for a high-end restaurant will have much in common with the whales sought by casino operators. Each business might be in a position to offer exclusivity, prestige and unique engagement to its clients. In turn, each business can obtain an above-average return from investments in these high-value clients.

Clearly, the comparison with a casino, or a luxury car company, or a resort/spa, might be much more profitable for these restaurants than any comparison with the corner deli. If the owner of a high-end restaurant described his business as “selling food to hungry people,” he would be missing the point entirely.

On one level, this is so obvious that we shouldn’t need to discuss it. In real life, however, the conversation is seldom as mission-focused as our theoretical discussions would suggest. Don’t take my word for it, though. Ask the next five people you meet about their businesses and see how they respond. Then ask a few people in your own company, just for fun.